ITR 2 Filing Process

Introduction

• ITR 2 filing process is in high demand to understand capital gains/losses from property, shares, and mutual funds.
• Covers loss carry forward and maximum tax savings for the upcoming year.
• Detailed tax planning course available on Vidfin app (subscription-based).

When to File ITR 2

• Conditions for filing ITR 2:
  • Annual income exceeds ₹50,00,000.
  • More than one house property generating income.
  • Agricultural income over ₹5,000 in a year.
  • Individual is a director of a company or owns shares in a private company.
  • Income from lotteries, gambling, cryptocurrencies, or virtual assets.
  • Cash withdrawal exceeding ₹1 crore along with brought forward losses.
• Note: ITR 2 cannot be filed for business income; ITR 3 is required for such cases (freelancers/professionals).

Income Tax Website Filing Procedure

1. Registration/Login:

   • First-time filers need to register with personal details.
   • Existing users can login using PAN and password.

2. Collect Necessary Information:

   • Form 26AS: Access this to view TDS information. Select the relevant assessment year.
   • AIS (Annual Information Statement): To extract income information, check details such as salary, dividends, interest from savings, etc.

3. Filing ITR 2 Steps:

   • Select File Now option.
   • Choose appropriate schedules (e.g., salary, house property, capital gains).
   • Confirm the relevant information regarding existing properties, income sources, etc.

4. Selection of Schedules:

   • General sections based on income types, e.g., salary, capital gains from property or securities.
   • Ensure to check mark relevant instances for capital gains/losses.

5. Input the Credentials:

   • Fill in personal details, filing status, income sources, and respective income amounts.
   • Check details from Form 16 or other financial statements to ensure correctness.

6. Review and Submit:

   • Validate the completed form for any errors.
   • Opt for e-verification via Aadhaar for submission ease.

Important Considerations

• Taxation Rates: 30% tax on virtual digital assets with no carry forward for losses in crypto.
• Maintain proper documentation of each financial document used for cross-reference during filing (like AIS and Form 16).
• Tax-saving strategies can be explored by consulting the Vidfin tax planning course.

Conclusion

• Ensure all incomes and deductions reflect accurately in ITR 2.
• Utilize tools and resources available on the Vidfin app for enhanced financial insight.
• Engage with the community or support for any queries related to filing and maximize compliance for upcoming tax assessments.