Who should file ITR 2?
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ITR 2 is the income tax return form for individuals and Hindu Undivided Families (HUFs) who do not have income from "profits and gains of business or profession" but have complex income sources that make them ineligible to file the simpler ITR 1 form.
Who is eligible for ITR 2?
Form ITR – 2 can be used by an individual and Hindu Undivided Family who is not eligible to file ITR-1 Sahaj and not having income from “profit and gains of business or profession” and also not having income from “Profits and gains of business or profession” in the nature of interest, salary, bonus, ...
Should I file ITR 1 or ITR 2?
Income Ceiling: ITR-1 has an income limit of ₹50 lakh total income. If your total taxable income for the year is more than ₹50,00,000, you cannot use ITR-1. Such taxpayers will need to use ITR-2 (or another appropriate form) because ITR-2 has no upper income limit – it can handle incomes above ₹50 lakh without issues.
Who should file ITR 2 and 3?
ITR 2 and ITR 3 cater to distinct taxpayer profiles. If business or professional income, share trading, or partnership firm earnings are part of your financial landscape, ITR 3 is the form to choose. For salaried individuals or those with capital gains but no business activity, ITR 2 usually applies.
Is ITR 2 for nri?
ITR-2 - Applicable for Non-Resident Individual
This return is applicable for Individual (whether Resident or Non-Resident) and Hindu Undivided Family (HUF). Having Income under any head other than Profits and Gains of Business or Profession.
Foreign Assets Disclosure in ITR | Foreign Income Taxable in India | Foreign Assets & Income in ITR
Is ITR-1 or 2 required for NRIs?
An NRI who has income from salary and foreign assets should use ITR-2. This form is designed to accommodate income from salary, foreign income, capital gains, and other sources. It also includes sections for declaring foreign assets and liabilities, which is mandatory for NRIs to ensure compliance with Indian tax laws.
What is exempt income for ITR-2?
ITR-1 (Sahaj): Salaried individuals with exempt income up to ₹5,000. ITR-2: If exempt income exceeds ₹5,000 or includes agricultural income above ₹5,000.
When should ITR-2 be filed?
If an individual earns income from more than one house property, has capital gains, or their total income exceeds Rs. 50 Lakhs, they should file ITR-2. On the other hand, if the individual receives income from salary along with business or professional earnings, ITR-3 is applicable.
Do I have to file ITR if my income is 3 lakh?
As per the Income Tax Act, 1961, NRIs/PIOs/OCIs are required to file an ITR in India if their total annual income in India exceeds: ₹2.5 lakh under the existing tax regime. ₹3 lakhs under the new tax regime (increased to Rs. 4 lakhs starting FY 2025-26)
Can ITR-2 be filed online?
You can file and submit your ITR through following methods: Online Mode – Through e-Filing portal. Offline Mode – Through Offline Utility.
How long does it take to get the refund from ITR-2?
Usually, it takes 4-5 weeks for the refund to be credited to the account of the taxpayer. However, if refund is not received during this duration, the taxpayer must check for intimation regarding discrepancies in ITR; check email for any notification from the IT department regarding the refund.
What is the meaning of ITR-2 filing?
ITR-2 can be filed by individuals or HUFs who: Are not eligible to file ITR-1 (Sahaj) Do not have income from profit and gains of business or profession and also do not have income from profits and gains of business or profession in the nature of: interest.
What is the salary range for ITR-2?
If you have a salary income and your total income is more than Rs. 50 lakh then you must file your income tax return using ITR-2 form. You will have to fill out the different salary components as required by the department.
Who is not eligible to file ITR 3?
Who is Not Eligible to File the ITR-3 Form? No persons other than individuals & HUF are eligible to file ITR -3 Form. Individuals & HUFs not having income by way of business or profession or partnership firm are not eligible to file the ITR-3 Form.
How to claim hra in ITR-2?
Report HRA details under Income from Salaries in ITR-1 or ITR-2. The exempt amount is the lowest of actual HRA received, 50% or 40% of salary for metro or non-metro cities, or rent paid minus 10% of salary. Self-employed individuals cannot claim HRA but can use Section 80GG for rent deductions.
Does NRI need to file tax in India?
As an NRI, PIO, or OCI, you may be required to file tax returns in India if your Indian income surpasses the specified threshold or if you seek to claim refunds for excess tax deductions. While filing an ITR is mandatory only under certain circumstances, voluntary filing can be beneficial in many ways.
What is the difference between ITR 1 and ITR 2?
ITR 1: Salary/pension, one house property, other sources, excluding lottery and race horses; agricultural income up to INR 5,000. Whereas, ITR 2 includes more complex incomes like more than one house property, capital gains, foreign income, and agricultural income above INR 5,000.
What is the late fee for ITR 2?
The penalty for late filing of ITR is Rs. 1,000 for income up to Rs. 5 lakhs and Rs. 5,000 for higher incomes, plus 1% monthly interest on unpaid tax.
What is 80C deduction in ITR 2?
Section 80C provides deductions up to Rs.1.5 lakhs on various investments and expenses. These include deductions for life insurance premiums, PPF, home loan principal repayment, ELSS mutual funds, Sukanya Samriddhi Yojana, and many more.
Is it compulsory to file ITR if income is below 2.5 lakhs?
As per the Income Tax Act, 1961, individuals with an annual income below ₹2.5 lakh are not required to file an ITR. However, there are exceptions where filing is still necessary or beneficial, such as: If you want to claim a tax refund. If you had TDS deducted from salary, bank interest, or investments.
Is foreign income ever exempt?
However, you may qualify to exclude your foreign earnings from income up to an amount that is adjusted annually for inflation ($107,600 for 2020, $108,700 for 2021, $112,000 for 2022, and $120,000 for 2023). In addition, you can exclude or deduct certain foreign housing amounts.
Who should file ITR1?
In summary, resident individuals with income from salary, one house property, interest or dividends, small agricultural income, and possibly a small equity gain, with total income ≤ ₹50 lakh, can file ITR-1. This covers most salaried employees, retirees, and simple income cases.
How much taxable income is tax-free in India?
Tax-free income in new tax regime (Financial Year 2025-26)
This means that individuals earning up to Rs. 12 lakh will have their tax liability effectively reduced to zero. For salaried employees, an additional standard deduction of Rs. 75,000 elevates the tax-free income threshold to Rs. 12.75 lakh.