Here’s a look at who should use the ITR-2 form.
Who is eligible to file tax return using ITR-2?
ITR-2 is a more comprehensive tax return form as compared to ITR-1 form as it requires more detailed description of various sources of income of the taxpayer.
ITR-2 should be used by an individual taxpayer if he/she fulfills any of the criteria mentioned below:
a) If you are a resident (ordinarily or non-ordinarily) or a non-resident
b) Hindu Undivided Family (HUF)
c) a director of a company
d) Holding investments in unlisted equity shares
e) having income from— salarymore than one house property, capital gainIncome from other sources like interest income, dividend etc.
f) Income from assets outside India such as dividends from shares of foreign companies, etc.
g) Holding property outside India
h) if there is any loss carried forward or carried forward under the head ‘Income from house property’,
i) If you have income from betting on winnings from horse racing, lotteries and other means of gambling
j) If TDS was applicable to you for certain cash payments made during the financial year 2021-22
k) If income tax was deferred on employee stock option plans
l) If agricultural income is more than Rs.5,000
m) If you are claiming any treaty relief under the Double Taxation Avoidance Agreement
What happens if wrong ITR form is used?
Remember that while filing ITR you must ensure that you have selected the correct ITR form. If the ITR is filed using the wrong tax return form, the Income Tax Department will send you a tax notice. The tax department will ask you to file ITR using the correct tax return form.