Income tax Department on June 26, 2020 have uploaded the ITR-2 Form for efiling. Form is required to be filed by Individuals and HUF’s not having income for business or profession.

Who is require to file ITR-2 for AY 2020-2021?

ITR Form 2 is for Individuals and HUF receiving income other than income from “Profits and Gains from Business or Profession”.

Thus persons having income from following sources are eligible to file Form ITR 2:

• Income from Salary/Pension
• Income from House Property
• Income from Short Term Or Long Term Capital Gains/loss on sale of investments/property
• Income from Other Sources
• Foreign Assets/Foreign Income
• Agricultural Income more than Rs 5000
• Resident not ordinarily resident and a Non-resident

A Director of any company and an individual who has invested in unlisted equity shares of a company will be required to file their returns in ITR-2.

Who is not eligible to file ITR-2 for AY 2020-2021?

1. Individual having income from Business or Profession
2. Individuals eligible to file their ITR in Form ITR-1

Changes in ITR-2 for AY 2020-2021

• 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 amount of cash deposits above Rs 1 crore in the current accounts with a bank.
• Expenditure incurred above Rs 2 lakh on foreign travel
• Expenditure incurred above Rs 1 lakh on electricity.
• Resident individuals owing more than one house property should also file 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.
• In case of short-term or long term capital gains from sale of land or building or both, the details of the buyer(s) i.e. name, PAN or Aadhaar, percentage share of ownership and address have to be given.
• A separate schedule 112A for the calculation of the LTCG on sale of equity shares or units of a business trust which are liable to STT.
• The ‘Schedule VI-A’ for tax deductions is amended to include deduction under section 80EEA and section 80EEB.
• The details of tax deduction claims for investments or payments or expenditure made between 1 April 2020 until 31 July 2020.

Note: ITR-2 can filed online as well as offline using JAVA Utility or Excel Utility.

For any further requirements or enquiry contact

CS Arpit Garg
Company Secretary and Founder Compliance Arena
info@compliancearena.in
8447773833