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ITR filing: Here's all you need to know about Form 2

ITR filing: Here's all you need to know about Form 2

ITR filing: Here's all you need to know about Form 2
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By Anshul  Sept 16, 2020 7:28:56 PM IST (Published)

The Income Tax Return (ITR) filing deadline for financial year 2019-20 (assessment 2020-21) ends on November 30, 2020.

The Income Tax Return (ITR) filing deadline for financial year 2019-20 (assessment 2020-21) ends on November 30, 2020. Income tax department has notified 7 forms for filing ITR this year.

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Among these, ITR-2 is available for individuals and HUFs (Hindu Undivided Families), whether resident or non-resident, in respect of following incomes:
1. Salary or pension.
2. Income or loss from one or more house properties.
3. Income or loss under the head ‘Capital Gains’
4. Income under the head ‘Other sources’ (including income chargeable at special rates).
If income of another person (spouse, minor child, etc.) is to be clubbed with the income of taxpayer, return in ITR-2 can be filed only when such income falls in any of the above categories.
Return in ITR 2 cannot be filed by an individual or HUF if he/it has income chargeable to tax under the head 'Profit or gains from business or profession' or he wants to claim deduction under Section 10AA or Part-C of Chapter VI-A.
Here are major changes introduced in ITR 2 for AY2020-21, according to ClearTax:
  • RNORs and non-resident individuals have to file their income tax return in ITR-2 even in case of total income below Rs 50 lakh.
  • The taxpayer should disclose (a) the amount of cash deposits above Rs 1 crore in the current accounts with a bank, (b) expenditure incurred above Rs 2 lakh on foreign travel (c) expenditure incurred above Rs 1 lakh on electricity.
  • Resident individuals who own more than one house property should also file their income tax return in ITR-2.
  • ITR-2 continues to apply to resident individuals who have total income exceeding Rs 50 lakh.
  • Any individual taxpayer having income from business or profession cannot use ITR-2.
  • In case an individual is a director in a company or holds unlisted equity investments, the ‘type of company’ should also be disclosed.
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