ITR-2

ITR-2 form is for individuals and HUF receiving income other than income from 'Profits and Gains from Business or Profession'. Thus, individuals with income from the following sources are eligible to file Form ITR-2: Income from salary/pension. Income from house property (income can be from more than one house property.

ITR-2 is for the use of an individual or a Hindu Undivided Family (HUF) whose total income for the AY 2023-24 includes:

  • Income from Salary/Pension
  • Income from House Property
  • Income from Other Sources (including Winnings from Lottery and Income from Race Horses)
  • If you are an Individual Director in a company
  • If you have had investments in unlisted equity shares at any time during the financial year
  • Being a resident not ordinarily resident (RNOR) and non-resident
  • Income from Capital Gains
  • Having any foreign income
  • Agricultural income more than Rs 5,000
  • Owning assets (including financial interest in any entity) outside India, including signing authority in any account located outside India
  • If tax has been deducted under Section 194N
  • If in case payment or deduction of tax has been deferred on ESOP
  • If you have any brought forward loss or loss needs to be carried forward under any income head

Further, in a case where the income of another person like one’s spouse, child etc. is to be clubbed with the income of the assessee, this Return Form can be used where such income falls in any of the above categories.

The total income can be more than Rs 50 Lakhs.

Who cannot use ITR-2?

This Return Form should not be used by an individual whose total income for the AY 2023-24 includes Income from Business or Profession. For declaring these types of Income, you may have to use ITR-3 or ITR-4. Go through our comprehensive guide on ITR-2 to know how to fill out the ITR-2 form.

Who is eligible to file ITR-2 for AY 2023-24?

ITR-2 form is for individuals and HUF receiving income other than income from ‘Profits and Gains from Business or Profession’. Thus, individuals with income from the following sources are eligible to file Form ITR-2:

  • Income from salary/pension
  • Income from house property (income can be from more than one house property)
  • Income from capital gains/loss on sale of investments/property (both short-term and long-term)
  • Income from other sources (including winning from lottery, bets on racehorses and other legal means of gambling)
  • Foreign income
  • Agricultural income of more than Rs 5,000
  • Resident not ordinarily resident and a non-resident

The total income from the above sources may exceed Rs 50 lakh.
Further, if you are a Director of any company and an individual invested in unlisted equity shares of a company, you must file returns in ITR-2.

Major changes in ITR-2 in FY 2022-23 (AY 2023-24)

  • A separate schedule has been added for reporting income from crypto and other Virtual Digital Assets (VDA).
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