ITR-2 Form Filing

Experience a smooth and stress-free ITR-2 form filing online with Kanakkupillai
Our tax professionals specialize in ITR-2 filings, ensuring accurate and optimized returns.
Customized filings based on your unique income sources, investments, and declarations.
Documents required for filing ITR 2 are PAN card, Aadhaar card, Form 16, Investment proof, and Bank statements.
Your financial information is handled with the highest level of security and confidentiality.
Get your ITR-2 filed quickly and we help maximize your tax savings while staying fully compliant with regulations.

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Overview of ITR-2 Form Filing

Paying income tax is an important requirement in India, as it helps the government fund public services, infrastructure, and welfare programs. Filing an Income Tax Return (ITR) is not just a mandatory requirement under law. It also allows individuals to report their earnings, claim tax benefits, and maintain a clean financial record.

Among the different ITR forms, ITR-2 is meant for individuals and Hindu Undivided Families (HUFs) who do not earn income from business or profession but have earnings from salary, pension, capital gains, foreign assets, or agricultural income above ₹5,000. Filing ITR-2 is important for individuals who have multiple sources of income, such as rental income from house property or investments in stocks and mutual funds. A well-maintained tax record also helps when applying for loans, visas or financial approvals that require proof of income.

What is ITR-2 Form?

ITR-2 is an income tax return form used by individuals and HUFs who earn income from various sources except income from business or profession. The return covers income from salary, house property(s), capital gains, and other sources, such as foreign assets.

Who Can File ITR-2?

Individuals and HUFs who are not engaged in business or profession.
Salaried individuals with income exceeding the exemption limit.
Individuals with capital gains from the sale of assets like property or shares.
Taxpayers with foreign income or assets.
Agricultural income exceeding Rs. 5,000.
NRIs earning income in India that falls under ITR-2 eligibility.
Individuals having income from more than one house property.

Who Cannot File ITR-2?

Individuals with income from a business or profession.
Those earning income from partnership firms.
Individuals eligible to file ITR-1 (Sahaj).

Advantages of Filing ITR-2 Form

Filing ITR-2 Return offers numerous benefits such as:

Legal Compliance: Your ITR-2 acknowledgement documents your income and personal information, which serves as an official document of your name, address, and income, which is crucial when applying for loans, visas, and other legal paperwork.
Claim Deductions and Exemptions: ITR-2 helps you to claim several deductions and exemptions under the Income Tax Act, 1961. This includes benefits like tax breaks for investments, expenses, and refunds, which help reduce your overall tax liability.
Required by Institutions: When you apply for loans and credit cards, financial institutions like banks require proof of income and tax returns. Filing an ITR-2 Return provides a reliable record of your financial history, making it easier for you to secure loans or credit.
Improve Chances for Visa Approval: If you are planning to travel abroad, having a history of filing income tax returns can increase your chances of visa approval. Many countries require ITR documents as part of their visa application process to ensure that applicants are financially stable and compliant with tax laws. Filing ITR-2 can improve your chances of obtaining a visa.
Avoid Penalties: Not filing ITR-2 on time can lead to penalties under the Income Tax Act, 1961. Filing the correct Income Tax Return on time helps you avoid penalties and stay compliant with the tax laws, which protects you from unnecessary financial troubles.

Documents Required for ITR-2 Filing Online

You need the following documents to file ITR-2:

PAN (Permanent Account Number) card of the taxpayer.
Aadhaar card of the taxpayer: It serves as proof of name and address.
Form 16: This form is issued by companies and includes information about salary income and tax deductions.
Form 16A: It is issued by tax deductors and gives details about TDS taken on interest made from fixed deposits or savings accounts.
Form 26AS: A consolidated tax account that can be downloaded from the e-Filing website, it shows TDS on pay and other sources.
Bank statements: It is necessary to calculate interest income from savings accounts and fixed deposits (FDs).
Investment documents: These include information about mutual funds, shares, stocks, and other assets.
Property documents: These are required for reporting rental income that estimates the expenses linked to house property.
Capital gains statements: These provide information about capital gains or losses from the sale of assets like shares, stocks, or real estate.
Rent receipts: If you haven't already filed them with the company, you must figure out the HRA (House Rent Allowance) reduction.

By gathering these papers beforehand, filers can ease the ITR-2 filing process and ensure accurate reporting of their income and tax bills.

Process of Filing ITR-2 Online

Collect Required Documents: Gather all necessary income and investment-related documents.
Log in to the e-Filing Portal: Visit the Income Tax e-filing website and log in using your PAN and password.
Select the Correct ITR Form: Choose ITR-2 based on your income sources.
Pre-fill Data: The system provides pre-filled data; verify and update it as necessary.
Enter Income Details: Report salary, house property income, capital gains, and other sources accurately.
Declare Deductions and Exemptions: Fill out the relevant sections for tax-saving investments.
Compute Tax Liability: The system calculates tax based on entered details.
Pay Any Tax Due: If additional tax is payable, complete the payment process.
Verify Return Details: Review the entire form for accuracy before submission.
Submit the ITR: File the return electronically and complete e-verification using Aadhaar OTP, net banking, or sending ITR-V to CPC Bangalore.

How to Handle Foreign Income and Assets in ITR-2

If you have income from outside India or own assets abroad, it is essential to report these details when filing your ITR-2. The Income Tax Act, 1961 makes it mandatory to disclose foreign income and assets to make sure that you stay compliant with the law and prevent tax evasion. Here’s what you need to know about reporting foreign income and assets:

Foreign Income: Foreign income includes earnings like salary, business income, interest from foreign bank accounts, dividends from foreign companies, and rental income from property located abroad. If you're an NRI (Non-Resident Indian) or have foreign income, you are still required to file an ITR in India and disclose your global income.
Foreign Assets: You must disclose the details of any foreign bank accounts, financial interests, or immovable property you own outside India. This includes reporting your foreign assets, income from them, and any taxes paid on that income to foreign tax authorities.
Relevance in ITR-2: Foreign income and assets are reported under the section related to "Income from Other Sources" in the ITR-2 form. If you have foreign income, you also need to report it in the "Schedule FSI" (Foreign Income and Assets) section of the form.
Tax Implications: Foreign income is taxable in India. However, you may be eligible for a tax credit for the foreign taxes you’ve paid. To avail of this, you must have proper documentation from the foreign country’s tax authority, such as proof of taxes paid abroad. The tax paid abroad can be claimed under the "Foreign Tax Credit" mechanism, provided you meet the necessary conditions.

Due Date for Filing ITR-2

For individuals and HUF: July 31 of the assessment year.

How to Save on Taxes with ITR-2 Filing?

Filing your ITR-2 form is not just about ensuring compliance with tax laws; it’s also an opportunity to optimize your tax savings. Here are some effective ways to save on taxes through proper filing:

1. Claim Deductions Under Section 80C of the Income Tax Act, 1961:

Section 80C allows taxpayers to claim deductions on specific investments and expenses. You can claim deductions for investments in instruments like Public Provident Fund (PPF), National Savings Certificates (NSC), Life Insurance Premiums, Employee Provident Fund (EPF), and tuition fees for children’s education, among others.
The maximum limit for claiming deductions under Section 80C of the Income Tax Act, 1961 is ₹1.5 lakh per year. Ensure that all qualifying investments and expenses are claimed to reduce your taxable income.

2. Investments in Tax-Saving Instruments:

National Pension Scheme (NPS): Additional deductions are available for investments made under NPS (Section 80CCD(1B)), up to ₹50,000 over and above the ₹1.5 lakh limit under Section 80C.
Health Insurance Premiums (Section 80D): You can also claim deductions for premiums paid on health insurance policies for yourself, your family, and your parents, including partners. This can reduce your taxable income significantly, especially if you or your dependents are senior citizens.
Home Loan Interest (Section 24): If you’ve taken a home loan, you can claim a deduction of up to ₹2 lakh per year on the interest paid under Section 24 for self-occupied property.

3. Tax-Free Income:

Income from sources such as agricultural income which are above ₹5,000, long-term capital gains under certain limits, or interest from certain bonds can be tax-free.

4. Avoiding Penalties:

Filing your tax return correctly and on time can help you avoid penalties and interest. Late filing can attract a penalty of up to ₹10,000 under Section 234F of the Income Tax Act, 1961 and interest under Sections 234A, 234B, and 234C of the Income Tax Act, 1961 on unpaid taxes.

5. Reinvest Capital Gains:

You can save taxes by reinvesting your capital gains in specific assets. For example, under Section 54 of the Income Tax Act 1961, if you sell a property to buy a new property, you can avoid paying capital gains tax on the profit from the sale. Similarly, there are provisions under Sections 54EC and 54F of the Income Tax Act, 1961 that allow for exemptions if you reinvest your capital gains Account Scheme.

Common Mistakes to Avoid While Filing ITR-2

Choosing the wrong ITR form.
Providing incorrect personal details such as PAN, Aadhaar, or bank details.
Failure in reporting additional sources of income.
Claiming ineligible deductions.
This is not reconciled with Form 26AS, AIS, and TIS Report.
Filing incorrect tax computation or missing out on exemptions.
Ignoring foreign income and assets, which can lead to penalties.
Delayed filing, resulting in penalties and interest charges.
Not e-verifying the ITR post submission.
Missing out on reporting capital gains or losses.

Why Choose Kanakkupillai for ITR-2 Form Filing?

Your go-to partner for ITR-2 filing is Kanakkupillai, who offers knowledgeable support and guarantees a smooth and correct filing process. Our knowledgeable staff streamlines the tax procedure, saving you time and effort while guaranteeing adherence to all relevant laws. We successfully manage all complexity thanks to our in-depth knowledge of tax regulations and the ITR-2 form, freeing you up to concentrate on other important tasks.

Personalized Approach: At Kanakkupillai, we understand that every individual is different and that every individual's financial situation is unique. That's why we offer customized solutions for both individuals and Hindu Undivided Families (HUFs). Our professionals will walk you through the filing process step-by-step to make sure that all of your sources of income and deductions are correctly documented.
Expertise and Experience: Kanakkupillai's years of tax filing experience give you an unparalleled knowledge. Our personnel are knowledgeable about the intricacies of ITR-2 and other associated tax Returns.
Timely Filing and Compliance: Filing your tax returns on time is important to avoid penalties and interest charges. Kanakkupillai ensures that your ITR-2 is filed within the deadlines. We make sure all the necessary documents are correctly submitted, reducing the risk of errors and ensuring smooth processing.
Hassle-Free Process: We aim to simplify the tax filing process. Our platform and team make sure that the paperwork, calculations, and submissions are handled professionally. You won’t need to worry about the intricacies of tax laws – Kanakkupillai will guide you throughout, ensuring you meet all requirements without unnecessary complications.
Affordable and Transparent Pricing: At Kanakkupillai, we offer cost-effective and transparent pricing for our ITR-2 filing services. There are no hidden fees, and we ensure complete clarity on the costs involved.
Peace of Mind: When you choose Kanakkupillai, you gain peace of mind knowing your ITR-2 filing is in the hands of professionals who care about your financial well-being. We ensure everything is done correctly and on time.

Frequently Asked Questions

What is ITR-2, and who should file it? +

ITR-2 is for individuals and Hindu Undivided Families (HUFs) who do not have income from a business or profession. Individuals file it with income from salary, pension, capital gains, foreign income, or agricultural income over ₹5,000.

How do I report foreign income and assets? +

You must disclose foreign income in the "Income from Other Sources" section and report foreign assets in the "Schedule FSI" of ITR-2. Documentation such as foreign tax payments and asset details is necessary.

What are the tax rates for capital gains? +

Short-term capital gains (STCG) are taxed at a higher rate, generally 15%, whereas long-term capital gains (LTCG) are taxed at 10% for equity shares and mutual funds, above ₹1 lakh. Other assets may have different tax rates.

What deductions can I claim on ITR-2? +

You can claim deductions under various sections like 80C (for investments like PPF, EPF), 80D (health insurance), 80G (donations), and 24(b) (home loan interest). Make sure to keep receipts for all claims.

Can I save taxes with ITR-2? +

Yes, through deductions, exemptions, and proper reporting of income, you can reduce your taxable income and save on taxes. Investments in tax-saving instruments and reinvestment of capital gains can further lower your tax liability.

What happens if I file ITR-2 after Due Date? +

Late filing can attract a penalty of up to ₹10,000, and you will also be liable for interest on any unpaid tax. Always file before the due date to avoid these penalties.

Is e-verification mandatory after filing ITR-2? +

Yes, e-verification is necessary to complete the filing process. You can verify your ITR using Aadhaar OTP, net banking, or by sending a signed copy of ITR-V to the Income Tax Department.

Can I revise my ITR-2 after submission? +

Yes, you can file a revised ITR within the same assessment year if you discover any errors or omissions after submitting your return. The revised return should be filed before the end of the assessment year.