ITR 2 Form: Meaning, Eligibility & Step-by-Step Filing Guide

ITR 2 Meaning - What is ITR 2 Form?

ITR-2 can be filed by a resident individual whose total income exceeds Rs 50 lakh during the financial year and has income from either of the sources – capital gains, income from more than one house property, foreign income, etc.ITR 2 is an income tax return form for individuals and HUFs having income from sources other than “Income from business and profession.”

Therefore, the ITR 2 form is applicable to individuals having income from diverse sources like salary/pension, income from house property, capital gains, other sources, residents having a foreign income, agricultural income exceeding Rs.5,000, residents not ordinarily resident or non-resident, income from virtual digital assets.

Who is Eligible to File ITR-2 Form?

If you are wondering who can file ITR 2 for the FY 2024-25, ITR-2 form is available for individuals and HUF with income from the following sources:-

• Are ineligible to file ITR-1 (Sahaj): This means they do not meet the simplified criteria for ITR-1, such as having income from salary, pension, or house property.
• Salary or Pension
• One or more House Property
• Capital Gains or loss on the sale of investments like shares and mutual funds or property. It includes both short-term and long-term capital gains.
• Other sources- including interest income on FDRs, Dividend income, winnings from the Lottery, bets on Race Horses, and income from other legal gambling.
• Foreign Assets/Foreign Income
• Agricultural Income of more than Rs 5000
• Resident not ordinarily resident and a Non-resident
• Director of a company

The total income from the above sources may exceed Rs 50 lakh.

Additionally, if you are a director of any company and an individual invested in unlisted equity shares of a company, you must file returns in ITR-2.

Who is NOT Eligible to File ITR 2?

ITR-2 cannot be filed by any individual or HUF, whose total income for the year includes income from profit and gains from business or profession, and also who has income in the nature of:

• interest
• salary
• bonus
• commission or remuneration, by whatever name called, due to, or received by him from a partnership firm.

What Documents do I Need to File ITR 2?

• ITR copy of the previous year
• Bank statement
• TDS certificates
• Savings certificates/deductions
• Interest statement reflecting interest received during the year
• Balance sheet, profit and loss account statement, and other applicable audit reports
• If you earn a salary, you need Form 16 from your employer
• If TDS was deducted on interest earned from savings accounts or fixed deposits, you need a TDS certificate
• Form 26AS is necessary to verify TDS on salary and other income sources
• Rent receipts are required for calculating House Rent Allowance (HRA) if you live in rented accommodation
• If you have capital gains from shares, you need a summary of profit or loss statement
• Bank passbook and Fixed Deposit Receipts (FDR) are needed to calculate interest income
• Relevant supporting documents are necessary if you incurred a loss and want to claim it
• For tax savings under Sections 80C, 80G, 80D, or 80GG, you need supporting documents
• If you want to claim any loss, you need a copy of ITR-V.

How to file ITR 2 for AY 2025-26 with Tax2win?

• Step 1: Go to the website of Tax2win and click on login to file ITR.
• Step 2: On the Homepage, you will get two options: File it yourself and Get a personal eCA.
  The file it yourself option lets you file the ITR yourself, while the eCA-assisted page offers you to take the assistance of our CA to guide you at each step.
• Step 3: If you click on “File yourself” option, you will find the below screenshot. Select the “ Income from Salary/Pension” and “Income from Capital Gains” to file ITR-2 form.
• Step 4: Once you will continue, you will get the option to upload Form 16. You can also skip this option. In that case, you have to fill in all details manually of income from Salary, deductions, and allowance, etc.
  
  
• Step 5: Let us do the paperwork for you further. Share the PAN number and DOB. Click on ‘Proceed’ and enter the OTP received.
  
  
• Step 6: Further, share some basic yet important details about you if you haven’t selected the pre-filled option.
  
  
• Step 7: Further help us with your employment details and other salary information.
  
  
  
  
  
• Step 8: Enter details of equity, debentures, property & other securities. Upload Capital Gain report.
  
  
• Step 9: Share the details of deductions to maximize your tax savings.
  Note: In the case of the New Tax Regime, only deduction u/s 80CCD(2) is allowed. This is available under the Other tab.
  
  
• Step 10: Enter your bank details so the IT department can transfer any refund( if applicable).
  
  
• Step 11: In the next step, claim a tax credit by entering the details of taxes paid as a TDS, Self-assessment tax or advance tax, etc. Also, you can get tax credit details autofill by uploading form 26 AS.
  
  
• Step 12: Review all the details in the summary report and proceed to e-filing.
  You can always avail of the “Get CA assisted” option if you get stuck in between, Our experts are always there to assist you.

How to File Form ITR-2 with the Help of the Income Tax Portal?

The ITR 2 form can be downloaded from the e-filing portal. Get a detailed understanding of what information is required to be furnished in this form in a sequential manner. Given below are the steps you need to follow to fill form ITR 2 through the Income Tax Portal -

• Step 1. Login to the income tax e-filing portal using your user ID and password.
• Step 2. Click e-file on your dashboard. Now click on Income Tax Returns > File Income Tax return

What is the Structure of ITR-2?

The structure of the ITR-2 Form consists of the following components:

• Section A: General Details
• Schedule S: Explanation of Salary Income
• Schedule HP: Explanation of Income from Property
• Schedule CG: Calculation of Capital Gains Income
• Schedule 112A: Income from the Sale of Company Equity Shares
• Schedule 115AD: Income from the Sale of Company Equity Shares (for non-residents)
• Schedule OS: Calculation of Other Sources of Income
• Schedule CYLA: Description of Income after Set-Off of Current Year Losses
• Schedule BFLA: Explanation of Income after Set-Off of Brought Forward Losses from Previous Years
• Schedule CFL: Description of Losses Carried Forward to Future Years
• Schedule VIA: Deductions under Chapter VI-A (Sections)
• Schedule 80G: Details of Donations Eligible for Deduction under Section 80G
• Schedule 80GGA: Donations for Rural Development and Scientific Research
• Schedule AMT: Calculation of Alternate Minimum Tax under Section 115JC
• Schedule AMTC: Tax Calculation under Section 115JD
• Schedule SPI: Income of Specified Persons Included in Assessee’s Income
• Schedule SI: Income Taxable at Special Rates
• Schedule EI: Explanation of Exempt Income
• Schedule PTI: Income from Business Trust or Investment Fund
• Schedule IT: Statement of Advance Tax Payments and Self-Assessment Tax
• Schedule TDS1: Details of Tax Deducted at Source on Salary
• Schedule TDS2: Statement of Tax Deducted at Source on Income Other than Salary
• Schedule TCS: Statement of Tax collected at source.
• Schedule TDS2: Statement of Tax Deducted at Source on Income Other than Salary
• Schedule FSI: Explanation of Income from Overseas and Tax Relief
• Schedule TR: Summary of Tax Relief Claims for Taxes Paid Overseas
• Schedule FA: Description of Foreign Assets and Income from Foreign Sources
• Schedule 5A: Information on Income Apportionment between Spouses under the Portuguese Civil Code
• Schedule AL: Assets and Liabilities at Year-End
• Schedule Tax Deferred on ESOP: Information on ESOP-Related Tax Deferral
• Part B: TI: Calculation of Total Income
• Part B: TTI: Calculation of Tax Liability
• Tax Payment: Details of Advance Tax Payments
• Declaration: Statement by Taxpayer
• Tax Return Preparer Details

New Updates & Changes in ITR 2 for AY 2025-26

1. Schedule VDA: Income from transfer of Virtual Digital Assets
   A new schedule is added to compute income from cryptocurrencies or other virtual digital assets.
   
   
2. Relief u/s 89A: An additional clause has been added related to relief to residents who have income from foreign retirement benefits accounts:
   Point No. 1(e)4: Income taxable during the previous year on which relief u/s 89A was claimed in any earlier previous year
3. Sec 10(12C): In other Exempt Income, a new exemption has been added under Sec 10(12C)- Any payment from the Agniveer Corpus Fund to a person enrolled under the Agnipath Scheme or to his nominee.
4. Schedule SI: New point added 115BBH - Income by way of transfer of Virtual Digital assets
5. Section 80 CCH: Under Chapter VI A deduction, a new clause has been added- The entire amount contributed by applicants employed by the Central Government to the Agniveer Corpus Fund is eligible for tax deductions.
6. ARN: In schedule 80 G Clause D, additional information is required for ARN (donation Reference number.)

Difference Between ITR-1 and ITR-2

What precautions should I take to avoid issues while filing my ITR?

To avoid issues in filing your return and getting your refund, you must ensure you have done the following:

• Linked Aadhaar and PAN.
• Pre-validated your bank account where you want to receive your refund. ( Ensure that the bank account is linked with PAN and active to avoid refund failure.)
• Choose the correct ITR before filing it; else filed return will be treated as defective and you will need to file a revised ITR using the correct form.
• File the return within the specified timelines.
• Verify your return - you can opt for e-Verification (recommended option – e-Verify Now) is the easiest way to verify your ITR.

Find income tax filing for FY 2024-25 complex and not sure which ITR form to file with, don;t worry, tax2win tax experts can help you file ITR with the right form so that you can claim what is rightfully yours and avoid paying penalties and tax notice. Book your eCA now!