Legal Darbar is providing the best ITR-2 return filing service, in which individuals and Hindu Undivided Families (HUFs) who do not earn a living from a business or trade utilize ITR-2 to file their income tax returns. It applies to persons who generate money through salaries, multiple properties, capital gains, foreign assets, or other sources such as interest and payouts. Non-residents and persons with a high income must additionally file ITR-2. It requires extensive disclosure of finances, including tax-free earnings and foreign investments. Filing can be completed online via the Income Tax Department’s website. and Timely filing will reduce penalties and ensure compliance with tax requirements, making it essential to correct income reporting. legaldarbar.com
The legal darbar will follow these steps for filing ITR-2 online (e-filing):
Step 1: Log in to the Income Tax E-Filing Portal with your PAN/Aadhaar.
Step 2: Navigate to ‘e-File,’ then ‘Income Tax Returns,’ then ‘File Income Tax Return.’
Step 3: Choose the examination year and online mode.
Step 4: Choose ITR-2 for the return type.
Step 5: Fill in personal information and income facts (e.g., salary, house property, capital gains).
Step 6: Validate and review the form.
Step 7: Submit and e-verify with Aadhaar OTP, internet banking, or DSC.
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Legal Darbar will tell you how important the ITR-2 return filing is.
1. Legal Compliance: Filing ITR-2 is required if your income reaches the basic deduction limit under the Income Tax Act. Noncompliance might lead to penalties and legal issues.
2. Avoiding Penalties: Failing to file ITR-2 by the due date results in a late filing penalty of up to ₹5,000 under Section 234F. Filing on time helps you to avoid unwanted fines.
3. Tax Refunds: To claim a refund for excessive TDS (Tax Deducted at Source) payments from your income, file ITR-2.
4. Proof of income and financial record: ITR-2 is a valid proof of income for loan, visa, and credit card applications and many more.
5. Carry Forward of Losses: File ITR-2 on time to carry forward losses of capital gains (such as stock market or property sales) and balance them against future income.
6. Valuable Transactions: Individuals who invest in stocks, mutual funds, foreign assets, or real estate must file ITR-2 to report their income sources.
7. Avoiding Notices from the Income Tax Department: Failure to file an ITR despite having taxable income can result in government scrutiny and notices.
8. Overseas Property Disclosing: To comply with Indian tax regulations and avoid penalties under the Black Money Act, individuals having abroad properties or income must submit ITR-2.
9. Encourages visa processing: ITR filings are often required for visa applications, particularly for travel to the USA, UK, Canada, and European nations, as proof of financial status. legaldarbar.com
Legal Darbar gives you the best advantages for ITR-2 return filing:
1. Compliance with Tax Laws: Filing ITR-2 helps you to comply with Indian tax rules and regulations and avoid penalties for not filing.
2. Deductions Claiming: Claim deductions under Sections 80C, 80D, and 80G to reduce taxable income. Capital gain deductions can be claimed for investments like stocks, mutual funds, and real estate.
3. Financial Gains & Losses: Taxpayers must report capital gains and losses from the sale of property, shares, mutual funds, and bonds. It allows for the adjustment of capital gains and losses to optimize tax responsibility.
4. Accurate Tax Calculation: It enables accurate calculation of income from salaries, multiple properties, abroad income, and investments will allow adjustment of TDS (Tax Deducted at Source) and advance tax paid.
5. Easy Loan and Visa Applications: ITR-2 serves as official proof of increased income, making it easier to obtain loans , including home, vehicle, and personal loans, and can apply for visas to nations that will require the ITR documentation.
6. Carry Forward Losses: File ITR-2 to carry capital losses forward for up to 8 years and offset future gains.
7. Avoid Penalties and Notices: File ITR-2 on time to avoid penalties under Section 234F, which reduces your chances of receiving notices from the Income Tax Department.
8. Benefits for Non-Resident Indians (NRIs): It is suitable for NRIs with income from Indian sources, such as capital gains, rent, or interest.
Legal Darbar will tell you who has to file the ITR-2.
1. Salary/Pension revenue: If you earn a salary or pension but do not have any business or expert income.
2. Much House Property Money: Earn rental money by holding many properties.
3. Capital Gains: Short-term or long-term gains from selling property, shares, investment funds, etc.
4. Overseas Income or Investments: Report any abroad resources, bank accounts, or income from outside India.
5. Agricultural Income: If your agricultural income is more than ₹5,000.
6. Income From Other Sources: If your income comes from dividends, lottery wins, or another source.
7. Holding Leadership or Unlisted Shares: If you are a director or own shares in an unlisted firm.
Who Should Not File ITR-2?
- If you have income from a business or profession, you must submit ITR-3 or ITR-4.
- If your primary source of income is salary/pension, you can file ITR-1 (Sahaj).
Documents Required for ITR-2 Return Filing:
1. Personal Information:
- PAN card and Aadhaar card of the person.
- Bank account details (bank name, IFSC, account number, etc.) of that particular person.
2. Income and investment policies Documents:
- Salary/Pension Income
- Form 16 from your employer
- Salary slips
- House Property Income
- Rental agreement
- Home loan
- Interest certificate
- Municipal tax receipts
- Capital Gains Income
- Stock trading statement (for shares, mutual funds)
- Property sale contract
- Purchase contract of the sold property
- Interest documents from banks, post offices, etc.
- Dividend income statement
- PPF/NSC interest details
- LIC/PPF/EPF receipts
- ELSS/Mutual Fund investment proofs
- Home loan interest & principal payment receipts
- Tuition fee receipts
- Medical insurance premium receipts
3. Foreign Income & Assets: Details of foreign bank accounts, properties, and income sources
4. Tax Payments: Form 27AS is used for verifying TDS details and advance tax/self-evaluation tax payment challans.
FAQs for ITR-2 Return filing?
Individuals/HUFs with income from salary, property, capital gains, foreign income, or lottery winnings are eligible for ITR-2 Return filing but not the business or professional income are required to file ITR-2.
The due date for filing ITR-2 for individuals is July 31 of the evaluation year, unless it is extended by the government.
No, you cannot file ITR for the last two years now but you can file a updated return only within the prescribed time limits.
Yes, e-verification of ITR-2 is mandatory after online filing. Without e-verification or physical ITR-2
submission, the return is considered invalid by the IT department.
Responding to the notice through the e-filing portal, file ITR-2 if necessary, verify details, and explain why you did not have to file.
ITR-2 provides deductions for Sections 80C (investments), 80D (health insurance), 80E (education loans), 80G (donations), 80TTA (savings interest), and more, reducing the taxable income.
Yes, free income must be mentioned in ITR-2 under the “Free Income” schedule, even though it’s non-taxable. (e.g., PPF interest, agricultural income)
Calculate taxable income in ITR-2, which includes salary, capital gains, lottery winnings, deductions, tax, taxes, TDS, and ultimate tax liability.
By ensuring accuracy, optimizing deductions, managing compliance, and offering professional guidance for an easy tax return method, Legal Darbar simplifies ITR-2 filing.