Description

ITR-2 is the Income Tax Return form for individuals and Hindu Undivided Families (HUFs) who do not have income from business or profession. It is suited for taxpayers with multiple sources of income, capital gains, foreign assets, or high-value financial activities.

Who Should File ITR-2?

ITR-2 is applicable for individuals/HUFs whose income includes:

• Salary / Pension Income
• Income from more than one house property
• Capital Gains (Sale of shares, mutual funds, property, gold, crypto, etc.)
• Income from Other Sources (interest, dividends, lottery, etc.)
• Foreign Income or Foreign Assets
• Agricultural Income exceeding ₹ 5,000

You should also file ITR-2 if you are:

• A Director in a company
• Holding unlisted equity shares
• Having income from transfer of assets
• Having TDS deducted under Section 194N

Who Cannot File ITR-2?

You cannot use ITR-2 if:

• You have business or professional income (use ITR-3 instead)
• You are eligible for ITR-1 (Sahaj) and have no capital gains or foreign income

Key Features of ITR-2

• Applicable for complex income types such as capital gains and overseas income
• Allows reporting of multiple assets, investments, and exemptions
• Mandatory for investors dealing in stock markets, mutual funds, or property sales
• Detailed reporting structure for foreign assets, high-value transactions, and schedules
• Can be filed online through the Income Tax Portal

Why File ITR-2?

• To accurately declare capital gain/loss
• To claim exemptions under Sections 54, 54F, 54EC, etc.
• To maintain compliance if you own foreign assets
• To ensure eligibility for loans, visas, and refun