Personal & Corporate Tax

What is ITR-2 Form. This form is for Individuals and Hindu Undivided Family (HUF) not having income from profits and gains of business or profession. It includes income from capital gains, foreign income or any agricultural income more than Rs 5,000. ELIGIBILITY TO FILE ITR-2: Individual/Tax Payers having income from the following sources are eligible to file Form ITR 2: • Income from Salary/Pension • Income from House Property(Income Can be from more than one house property) • Income from Capital Gains/loss on sale of investments/property (Both Short Term and Long Term) • Income from Other Sources (including winning from Lottery, bets on Race Horses and other legal means of gambling) • Foreign Assets/Foreign Income • Agricultural Income more than Rs 5000 • Resident not ordinarily resident and a Non-resident A Director of any company and an individual who is invested in unlisted equity shares of a company will be required to file their returns in ITR-2. IN-ELIGIBILITY TO FILE ITR-2: • Any individual or HUF having income from Business or Profession • Individuals who are eligible to fill out the ITR-1 Form PENALTY PROVISION AS PER INCOME TAX ACT1961: As per section 234F of the Income Tax Act where a person is required to mandatorily furnish a return of income under section 139, fails to do so by the due date, attracts levy of late fee under this section to the amount of Rs 5,000/-, if the return is furnished on or before the 31st day of December of the assessment year; Rs 10,000/-, in any other case: In case the total income of the taxpayer does not exceed Rs 5,00,000/- then, the late fee payable shall not exceed Rs 1,000/- in any circumstances. Section 234F was made applicable in respect of Income Tax Return filed on or after the 1st April, 2018. MODE TO FILE INCOME TAX RETURN: OFF LINE MODE: Filing ITR in India is completely online and paperless. But I.T ACT 1961 provide option to file the return in paper form for following person: • An individual having age of 80 years or more at any time during the previous year In offline mode, the return is furnished in a physical paper form. The Income Tax Department will issue an acknowledgement at the time of submission of your physical paper return. ON-LINE MODE: • In online mode, file return online and e-verifying the ITR V through net banking/Aadhaar OTP/EVC. • By feeding the data electronically and then submitting the physical copy of the return in the form of ITR-V to CPC, Bengaluru. NOTE- When Individual/Tax Payer furnish the ITR-1 return using electronic medium, the acknowledgement will be seen in the inbox of the registered email id. It can also be downloaded from the official income tax website manually. After downloading the acknowledgement, you need to sign the form and then send to the CPC office, Bangalore through registered/Speed post before completing 120 days counting from the e-filing date. On the other side, it is not required to send the ITR V to the CPC if EVC/OTP option is used. *Remember that ITR-2 is an annexure-less form i.e. you do not have to attach any documents when you send it. DUE DATE OF ITR FOR AY2020-2021: • FY 2020-21 (AY 2021-22) – 30th September 2021 (Revised), • Every year on or before 31st July is termed as the last date for filing ITR 2 (Non-audit cases). Changes In ITR 2 For Assessment Year AY 2020-21: • Pensioners column has been added in the nature of employment. • Assesse is required to provide details of shareholding of Unlisted Company wherein he has to provide all the details of shares purchased and sold during the financial year. • Those in possession of foreign assets will need to provide detailed disclosure of foreign depository account, foreign custodian accounts, equity and debt interest and particulars of overseas cash value insurance contract or annuity contract. • Taxpayers having agricultural income will have to provide additional details, including land measurement in acres, the name of the district along with Pincode in which the land is located, quality of land mentioning whether the land is irrigated or rain-fed etc.and whether the land is owned or held on lease. • Income received from the residential house properties would have to furnish details such as Tenant Name, PAN or TAN Number. • A new deduction of 80TTB has been added in the deductions column. • From this assessment year, assesse is required to disclose his Directorship in Unlisted Company if any. Assesse has to provide the name of the Company, it’s PAN and his Director Identification Number • Facility of filing paper returns will now be available only to those over 80 years. Even in the case of total income below Rs 50 lakh, the non-resident individuals have to file their income tax returns in ITR-2. The taxpayer should disclose • The number of cash deposits above Rs 1 crore in the current accounts with a bank • Expenditure above Rs. 2 lakh • Expenditure incurred above Rs. 1 lakh on electricity. Structure of Form-ITR 2 ITR-2 is divided into: • Part A: General Information • Schedule S: Details of income from salaries • Schedule HP: Details of income from House Property • Schedule CG: Computation of income under Capital gains • Schedule 112A- From sale of equity share of a company or a unit of equity oriented fund /business trust on which STT is paid • Schedule 115AD (I)b(b) (iii) proviso- For Non-Residents -From sale of equity share of a company or a unit of equity oriented fund /business trust on which STT is paid • Schedule OS: Computation of income under Income from other sources • Schedule CYLA: Statement of income after set off of current year’s losses • Schedule BFLA: Statement of income after set off of unabsorbed loss brought forward from earlier years • Schedule CFL: Statement of losses to be carried forward to future years • Schedule VIA: Statement of deductions (from total income) under Chapter VIA • Schedule 80G: Statement of donations entitled for deduction under section 80G • Schedule 80GGA: Statement of donations for scientific research or rural development • Schedule AMT: Computation of Alternate Minimum Tax payable under section 115JC • Schedule AMTC: Computation of tax credit under section 115JD • Schedule SPI: Statement of income arising to spouse/ minor child/ son’s wife or any other person or association of persons to be included in the income of the assessee in Schedules-HP, CG and OS • Schedule SI: Statement of income which is chargeable to tax at special rates • Schedule EI: Details of Exempt Income • Schedule PTI: Pass through income details from business trust or investment fund as per Section 115UA, 115UB • Schedule FSI: Statement of income accruing or arising outside India. • Schedule TR: Details of taxes paid outside India • Schedule FA: Details of Foreign Assets and income from any source outside India • Schedule 5A: Statement of apportionment of income between spouses governed by Portuguese Civil Code • Schedule AL: Asset and liability at the year-end (applicable in case the total income exceeds Rs 50 lakhs) • Schedule DI: Schedule of tax-saving investments or deposits or payments to claim deduction or exemption in the extended period from 1 April 2020 until 30 June 2020 • Part B-TI: Computation of Total Income • Part B-TTI: Computation of tax liability on total income • Tax payments- Details of payment of advance tax and self-assessment tax • Details to be filled if the return has been prepared by a Tax Return Preparer DOCUMENT REQUIRED FOR FILING ITR-2: • Copy of PAN & Aadhaar • Address details • Bank Account details • Additional disclosures with reference to income from payroll & fixed deposits • Data required for claiming deduction • Data required regarding TDS return filing and advance tax payments • Investment proof • TDS certificate in Form 16 • Interest income certificate in Form 16A/Form 16. • Form 26AS • Other specific document SERVICE PROVIDED & PROCESS: • Collection of necessary documents such as Form 16 (TDS Certificate issued by the employer in case tax is deducted from salary), Form 16A ( issued by the bank for TDS deducted on the interest payment on the fixed deposit) in the TRACES format & capital gain statement. TDS certificate should be digitally signed by the taxpayer. • Download Form 26AS & cross check with TDS certificate to ensure that tax deducted from taxpayer salary or from taxpayer interest income is deposited with the government. • In case of any error, rectify Form 26AS. If the error is not rectified, taxpayer won’t be able to claim credit on deducted tax. • Next step is to calculate total income chargeable to tax. • After this, taxpayer needs to calculate tax liability. • Once all the taxes are paid, taxpayer can proceed for Income Tax Return filing. taxpayer can only claim for refund if taxpayer file income tax return. • Verification of Income Tax Return • Receive e-verification acknowledgement • Department will process taxpayer return and will communicate through mail. CHOOSE REQUIRED PLAN: • Basic: ITR-2 FILING for salaried person & having investment or owing Share of private Limited company. Service Fees- 899/- Including Taxes • Standard: ITR-2 FILING FOR person having income from capital gains or other Sources Service Fees- 1999/- Including Taxes • Ace: ITR-2 FILING FOR person having Foreign Asset/ Foreign Income. Service Fees- 2999/- Including Taxes Working Process :

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Frequently Asked Question (FAQ’S)- Q- How do I file ITR-2 when I have sold a house? Yes you can. Q-Who should not file ITR-2 Form? ITR-2 form should not be filed by any individual who has income under the head of Business or Profession from a proprietorship. ITR-2 form can also not be filed by a company or LLP or other types of legal entity. Q-When should ITR-2 be filed? ITR-2 form is to be used when the assesse has income that falls into the below category: 1. Accrued income through the sale of assets or property (Capital Gains) 2. Income from more than one housing property 3. Income from countries outside of India 4. Income as a partner in any firm (not proprietorship) 5. Income from agriculture above Rs 5,000 6. Income from any windfall such as lotteries or horse racing 7. Income from Salary/Pension, Housing Property, Other sources that exceeds Rs. 50 Lakhs Q- What is the due date for filing ITR-2 form? ITR-2 form must be filed by individuals and HUFs on or before 31st July of every year. Disclaimer: The materials provided herein are solely for information purposes. No attorney-client relationship is created when you access or use the site or the materials. The information presented on this site does not constitute legal or professional advice and should not be relied upon for such purposes or used as a substitute for legal advice from an attorney licensed in your state. ***