The Income Tax Department has released a new Income Tax Return (ITR) Form-2 which is relevant for Assessment Year 2017-18 (Financial Year 2016-17). The last date to file the return of income for individuals is 31st July 2017. Now let us have a look on who is eligible to use this return form and what is the procedure to use this form. Note: Please note that a person whose income includes income from business or profession from proprietorship is not entitled to use this form. When the total income of Huf or individual before taking the deductions under Chapter VI-A (under section 80C, 80D etc.) exceeds the maximum amount not chargeable to tax (i.e. ₹ 2,50,000 in case of individual below the age of 60 years), then he is required to file the return. You have to fill the basic details in this part including Aadhaar number and the section under which return is filed. Provide the correct address and the email for any communications. If you were employed by more than one employer during the year, provide the details for both the employments. You can use Form 16 to fill the salary details in the schedule. The following information will be required to be filed in respect of partnership firm: Detail of any salary, bonus, interest or commission received by you from the firms in which you are a partner is to be mentioned along with the PAN of the firm. Expenses related to such income have to be mentioned too. Here, the set-off of losses from various heads of income will be done as per the applicable provisions automatically. Example, the loss of business can be set-off from any income other than salary. Any loss which could not be set-off entirely will be carried forward to next year as per the applicable provisions. Also, the current income remaining after set-off will be reflected under this schedule. After the losses of current year have been set-off, the losses of previous years which are brought forward to this year are set-off against the current year income as per the applicable provisions. In column 3, current year income after set-off of losses is reflected. In this schedule, the summary of losses carried forward from earlier years, their set-off from the current year and any loss which is still left for carry is provided for each assessment year. The details of payments made for deductions under various sections are to be mentioned. For the maximum amount of deduction that can be taken under a particular section Income tax Act will have to be considered. Details of donations like the name, address and name of donee along with the amount of donation has to be mentioned. Deduction will be available as per the qualifying limits or upto the extent mentioned in the Act. Details of income of specified persons being spouse, minor child etc. as per the clubbing provisions have to be provided (name and PAN of person, relationship, nature and amount of income). For the income of minor child, a deduction of ₹ 1,500 is available per child. Mention the income included in Schedule-CG and Schedule-OS which is chargeable to tax at special rates. Such income will be taken from the appropriate columns in schedule BFLA/CYLA or schedule OS as indicated. In this schedule, incomes which are exempt from tax have to be mentioned. Example: dividend in excess of ₹ 10 lakhs. Income received from business trust or investment fund has to be mentioned. The name and PAN of trust or fund has to be mentioned along with the amount of income various heads. This allocation of income will be as per the form provided by the trust or fund. TDS, if deducted has to be filed. The income which is received from outside India (already included in total income) has to be mentioned. Country code has to be selected from the drop down menu. TIN of assessee in the other country has to be mentioned. In its absence, passport number has to be mentioned. Relief of tax will be calculated based on the tax paid outside India and tax payable on such income in India. Based on the previous schedule, summary of tax relief will be made here. Read points to take care while sending ITR-V to the income tax department.
Who can use ITR Form 2?
How to file Form ITR-2?
When are you required to file an income tax return?
Contents of Form ITR-2 and detailed guide to fill each part
PART-A: General
Schedule S: Salary
Schedule HP: Income from house property
Schedule IF: Information of firms in which you are partner
Schedule BP: Income from firms
Schedule CG: Capital Gains
Schedule OS: Income from other sources
Schedule CYLA: Set-off of current year losses
Schedule BFLA: Details of income after set-off of losses from previous years
Schedule CFL: Carry forward of losses to future years
Schedule VI-A: Deductions under Chapter VI-A
Schedule 80G: Deduction for donations under section 80G
Schedule SPI: Income of specified persons includible in your income
Schedule SI: Income chargeable to tax at special rates
Schedule EI: Exempt income
Schedule PTI: Pass through income
Schedule FSI: Income from outside India and relief of tax
Schedule TR: Summary of tax relief for taxes paid outside India
Schedule FA: Foreign assets and income from sources outside India
Schedule AL: Schedule of assets and liabilities
How to verify the return?
Detailed guide to file ITR Form 2 – applicable for AY 2017-18 (FY 2016-17)
