ITR 2 Filing: Tips for Filling Salary Details in ITR 2

Indian schools teach you everything from the Milky Way to the Cold War. But it doesn't teach you life skills like filing taxes, calculating IT returns, etc. As an honest taxpayer, you must have a detailed knowledge of your income streams and declare it at the right time. To ensure easy compliance, the Income Tax Department has devised different categories for taxpayers like you based on factors such as the source of income, residential status, and assets held. Download the ITR 2 form and fill out your details based on applicable income categories. Also read: What are the various types of ITR forms? Here's everything you need to know about ITR 2.

Residents, as well as non-resident Indians, use the ITR-2 form to file tax returns. The ITR-2 is a more comprehensive tax return form when compared to the ITR-1. This form requires a detailed breakup of a taxpayer's sources of income.Individuals, Hindu Undivided Family (HUFs) , or individuals that receive an income from sources other than business or profession are eligible to fill out the ITR-2 form. Individuals qualified to fill the ITR-1 form or receive an income- partial or complete- from a business or profession, are not eligible to fill the ITR-2 form. Also read: ITR-1 vs. ITR-2: Differences and Uses Every Taxpayer Should Know

As a taxpayer, you need to submit your income tax returns utilizing the ITR-2 form if you earn income from the following sources:

• Salary or pension
• Foreign assets or income
• An agricultural income exceeding Rs 5,000
• Sources such as legal gambling, lottery, or racehorses
• Short Term or Long-Term Capital Gains from selling investments or property
• House Property- income may be from more than one property
• Member of the Hindu Undivided Family (HUF) receiving a salary or pension
• Income under a partnership firm

You must fill out the ITR-2 form electronically or online. However, senior citizens above 80 years may fill out the ITR-2 form offline or on paper.The Income Tax department has made the ITR-2 form available online, allowing taxpayers to file returns through the official website with pre-filled data.Alternatively, you can opt for the Excel utility to download the form, fill out the essential details, and upload it to the website for electronic filing.If you opt for the Excel utility, head to the official IT website . You can also download the offline Excel utility by logging in to the e-filing portal and downloading the Offline Utility option.

Keep necessary documents at your disposal to fill out vital information in the ITR-2 form. Here's a list of the few essential documents required: Form 16: This form consists of information about your salary income Form 16A: If you have earned interest on your savings account or fixed deposits, you will need 16A. This form also furnishes information about any Tax Deducted at Source (TDS) deduction. Form 26AS: You will need this form to verify any TDS from salary or a source other than your salary. Rent Receipts: If you live in rented accommodation, rent receipts allow you to claim a House rent allowance (HRA) .You may also need documents such as bank passbooks and other relevant documents to claim tax-saving deductions. Also read: Income Tax Returns: All you Need to Know Before Filing ITR

Below are a few tips to keep in mind when filling out the ITR-2 form:

Know The Break-up of Your Salary:

Refer to Form 16 as it contains every detail about your salary. Use the information on basic salary, allowances including HRA and LTA, gratuity and more while filling the form. These details are required as some of the allowances are eligible for tax exemption.

Know What Schedule S is:

Schedule S includes details from salaries. There are two scenarios under Schedule S –

1. When HRA has been claimed: Check your Form 16 for reference. Also, check if it includes a professional tax which could be Rs. 2400-2500 for most.
2. When HRA has not been claimed: Even if not claimed, you will have to calculate it using a formula mentioned in Form 10.

Since ITR-2 is also filled in by those with more than one property, they will have to provide the PAN details of the tenant for tax deduction under 194-IB but if under section 194-I, then the TAN or the Tax Deduction Account Number must be furnished.

Know Where to Find More Information About Different Components in Form ITR-2:

• Check out Form 16 for all information on salary including allowances
• Read Form 12BA for details on perquisites
• Get information from Form 12BA to know what should be included under 'profits in lieu of salary.'

How to Quote Figures:

When mentioning figures, you will have to round it off to the nearest one rupee and then to the nearest multiple of ten.

A Sequence to Follow to Make the Process Easier:

Go to Part A first, then fill in the information under all the schedules. Attempt Part B-TI and Part B-TTI and finally go to verification.

Know the New Changes for Filling ITR-2:

A resident of India is now categorised into 'resident but not-ordinary' and 'non-resident.'Disclosures about long-term and short-term capital gains from mutual funds or shares, or immovable property, agricultural income etc.,

After completing the e-filing, the next crucial step to complete the process is verification. Tax filing is only valid if you complete the verification process. You can complete the verification online or offline within 120 days of filing your ITR-2 form.

Online verification:

1. Use the official e-filing link.
2. Under the Quick Links section, click "E-Verify Return."
3. Enter your PAN, assessment year, and acknowledgement number, to complete the verification process. You can also complete your e-verification through various modes such as Net Banking, Bank ATM, Aadhaar OTP, Bank Account Number, and Demat Account Number.

Offline Verification:

1. Download the ITR-V or acknowledgement.
2. Sign a printed copy of this acknowledgement
3. Send the signed copy to the CPC Office in Bangalore.

You can fill and submit your returns through the ITR-2 form on or before 31st July every year. Filing your returns a few days before is advisable to cross-check details and avoid rejection. You can also consult a tax expert if you have any questions regarding filing your returns. Also read: ITR 5 – Meaning, How To File It And Who Should File It Ready to make the most of your money? Start your tax planning journey now!