I-T Return Deadline: Know When To Use ITR-2 Form For Filing Returns

ITR-2 is a more comprehensive tax return form compared to ITR-1 as it requires a more detailed breakup of various sources of income.

New Delhi: People are rushing to meet the deadline of filing income tax returns which is just two days away ie July 31. One of the few important things to ensure before the returns are filed is the correct form, as filing wrong tax return form may lead to the tax department sending you a notice. In such a case, you will have to file the retrun again with the correct tax return form.

Also, the government is ruling out extending the date of filing return. On Thursday the tax department stated that annual filing by individuals has surpassed the 4-crore mark, reported Times of India. The latest development comes on the back of social media campaign to  ‘extend due date immediately’.

ITR-2 is a more comprehensive tax return form as compared to the ITR-1 as it requires detailed breakup of various sources of income . Several salaried people use the ITR-1 (sahaj) form while filing return. But there is possibility that you do not meet the eligibility criteria for filing a tax return using the ITR-1 form. You may have to use the ITR-2 form to file your tax return.

Who can file returns using ITR-2 form?

If you are a company’s director.

If you are a Hindu Undivided Family (HUF).

If you hold investments in unlisted equity shares.

Fill the form incase you have income from - salaries, more than one house property, capital gains, income from other sources such as interest income, dividends etc.

If you have income from assets outside India such as dividend from foreign companies share etc.

If you hold assets outside India.

If you have any losses to be carried forward or brought forward under the head 'Income from house property'.

If you have income from bets on horse racing, winnings from lottery and other means of gambling.

If you have TDS applicable for the certain cash payments made during the year.

If you have income tax deferred on Employee Stock Option plans.

If you have agricultural income more than Rs5,000.

In case you are claiming any treaty relief under the double taxation avoidance agreement.

Also, note that individuals must file the return on time before July 31 to avoid penalty keeping in mind the factors mentioned above. And even if they do not have any taxable income, they should still file the return.