Understanding ITR-2 Filing for FY 2023-24 (AY 2024-25) 📝
As the deadline for filing your income tax return (ITR) approaches, it’s crucial to ensure you use the correct form for your filing. While ITR-1 is commonly used by salaried individuals with specific income sources, it may not be suitable for everyone. In such cases, individuals must turn to the ITR-2 form to accurately file their returns. Whether you need to use ITR-2 and the necessary documentation for filing can vary based on your financial circumstances. Let’s delve deeper into the details to understand who should file ITR-2 and what documents are essential for the process.
Who is Eligible to File ITR-2
- Individuals or Hindu Undivided Families (HUFs) who are not eligible to file ITR-1 (Sahaj).
- Individuals who do not have income from profit and gains of business or profession and also do not have income from certain sources like interest, salary, bonus, etc.
- Those who have another person’s income to be clubbed with their own, such as income from a spouse or minor child falling under the specified categories.
Who is Not Eligible to File ITR-2
- Any individual or HUF whose total income includes profits and gains from business or profession and income from sources like interest, salary, bonus, etc.
Documents Required for Filing ITR-2
- Form 16 issued by your employer for salary income.
- TDS certificates (Form 16A) for deducted interest on fixed deposits or savings account.
- Form 26AS to verify TDS on salary and other income.
- Rent paid receipts for rented premises, if applicable.
- Summary or profit/loss statement of capital gain transactions in shares.
- Bank passbook or Fixed Deposit Receipts (FDRs) for interest income calculations.
- Details of rent receipts or local tax payment for rental income.
- Documents showing incurred losses during the current year, if applicable.
- Copy of previous year’s ITR-V in case of claiming previous year’s loss.
- Proofs for claiming tax-saving deductions under various sections.
Precautions for Smooth ITR Filing
- Ensure your Aadhaar and PAN are linked.
- Pre-validate your bank account for refunds.
- Choose the correct ITR form before filing to avoid errors.
- File your return within the specified timeline.
- Verify your return using e-Verification for a hassle-free process.
Hot Take: Wrap Up Your ITR-2 Filing With Confidence 🚀
By understanding the nuances of filing your income tax return with the appropriate form and necessary documentation, you can navigate the process seamlessly. Make sure to assess your eligibility for ITR-2, gather the essential documents, and follow the precautions for a smooth filing experience. With these insights, you can tackle your ITR-2 filing confidently and stay compliant with the tax regulations.
By
By
By
