What is IT1

1. What is ITR-2 form: How to file ITR-2 FY 2022-23 (AY 2023-24) Everyone must submit their taxes using the appropriate Income Tax Return (ITR) form. If you have capital gains, you should use ITR-2 form. However, if your income involves business or profession, use ITR-3. For those with salary, foreign asset or property income, ITR-2 form is the right choice. Learn how to file your capital gain ITR form by following these guidelines. What is ITR-2 form? ITR-2 form is one among different types of Income Tax Return form designed for individuals and Hindu United Families (HUFs) with diverse income sources, including significant earnings, foreign assets, or investments. This form ensures comprehensive reporting to the Income Tax Department, offering a holistic view of your financial situation. Why choose Income Tax Return-2? •Comprehensive Reporting: •ITR-2 allows you to provide detailed information about your income, ensuring accurate reporting of earnings from various sources. •Foreign Asset Declaration: •Ideal for individuals with overseas assets, ITR-2 ensures compliance with tax regulations regarding foreign income. •Capital Gains and Investments: •If you’ve engaged in equity investments, partnerships, or have capital gains, ITR-2 allows you to disclose these details effectively. What are the steps to file Income Tax Return-2 Form? To file the ITR-2 form online, the following steps should be followed; •Go to the official income tax department portal and choose “Income Tax Returns” under ‘e-File’. •Select the assessment year (Eg. AY 2022-2023) and choose Online filing. •Pick the correct form (say ITR-2 form) based on your status and reason for filing. •Navigate to ‘Income Schedule’, then ‘Schedule Capital Gains’. •Specify the type of capital asset and add details like selling price and acquisition cost. •Review Part B TTI and click on ‘Preview Return’. •Download the ITR form, fill in the details, and validate it. •Verify the filed ITR within 30 days either online or by sending a signed Income Tax Return Verification (ITR-V) to the IT department in Bangalore. What are the eligibility criteria for ITR-2?

2. Individuals and HUFs meeting the following criteria should choose ITR-2 form: •Earnings above INR 50 lakh. •Partner in a firm or director of a company. •Indian individual or part of a Hindu Undivided Family (HUF). •Salaried or receiving a pension. •Earning capital gains from multiple properties, houses, or other sources like lottery or horse racing. •Agricultural income exceeding INR 5,000. •Earning income from foreign assets or foreign sources. Who cannot file ITR-2 form? •Anyone with income from a business or profession •Individuals eligible for the ITR-1 Form (Sahaj) can fill out this form. What are the documents needed for filing ITR-2? For completing the ITR-2 filing, these documents are required; •PAN and Aadhar cards. •Bank statements. •Salary slips. •Investment details. •Property documents. What is the structure of Income Tax Return 2 form? ITR-2 form is organized into different sections: •General Information: Basic personal details. •Income from Salaries (Schedule S): Information about salary income. •Income from House Property (Schedule HP): Details of income from owned properties. •Capital Gains (Schedule CG): Computation of income from the sale of assets. •Equity Share Sale (Schedules 112A and 115AD): Information on the sale of equity shares. •Income from Other Sources (Schedule OS): Computation of income from miscellaneous sources. •Losses and Set Offs (Schedules CYLA, BFLA, CFL): Details of losses and their adjustment. •Deductions (Schedule VIA): Statement of deductions from total income. •Donations (Schedules 80G and 80GGA): Information about eligible donations. •Alternate Minimum Tax (Schedule AMT): Computation of alternate minimum tax. •Tax Credits (Schedule AMTC): Computation of tax credits. •Income of Others (Schedule SPI): Statement of income of others included in the taxpayer’s income. •Special Rate Tax (Schedule SI): Details of income subject to special tax rates.

3. •Exempt Income (Schedule EI): Information about income that is exempt from taxation. •Pass Through Income (Schedules PTI and FSI): Details of income from business trusts or investment funds. •Foreign Assets and Income (Schedule FA): Information about assets and income outside India. •Spousal Income Allocation (Schedule 5A): Apportionment of income between spouses. •Asset and Liability Declaration (Schedule AL): Details of assets and liabilities if total income exceeds INR 50 lakh. •ESOP Tax Deferred Information: Details of tax-deferred on ESOPs from eligible start-ups. •Computation of Total Income (Part B-TI): Calculation of total income. •Tax Liability Computation (Part B-TTI): Computation of tax liability. •Tax Payments: Information about advance and self-assessment tax payments. •Declaration by the Taxpayer: A statement declaring the accuracy of the information. •Tax Return Preparer Details: Information if a tax return preparer assisted in preparing the return. What are the major changes in ITR-2 for FY 2023-24? •Revised Income Slabs: Potential adjustments to income slabs affecting tax calculations. •Updated Deduction Limits: Changes in deduction limits under various sections. •Additional Reporting Requirements: Enhanced disclosure requirements for specific income sources. Conclusion Understanding and choosing the right ITR form is crucial for a hassle-free tax filing experience. With ITR-2 form, individuals can ensure compliance while providing a comprehensive overview of their financial affairs. Keep abreast of any changes in the form for the latest fiscal year to navigate the tax filing process smoothly.