Northlines Newsdesk
The deadline for filing ITR-2 and ITR-3 is set for July 31, 2024. However, taxpayers subjected to income tax audit and possessing business income are required to submit ITR-3 by October 31, 2024.
New Delhi, Feb 04: The Income Tax department has notified 7 different forms for return filing — ITR-1, ITR-2, ITR-3, ITR-4, ITR-5, ITR-6, and ITR-7.
ITR-2 form
ITR-2 form is for individuals and HUF receiving income other than income from ‘Profits and Gains from Business or Profession'. Individuals with income from the following sources are eligible to file Form ITR-2 — Income from salary/pension, Income from house property (income can be from more than one house property), Income from capital gains/loss on sale of investments/property (both short-term and long-term), Income from other sources (including winning from lottery, bets on racehorses and other legal means of gambling), Foreign income, Agricultural income of more than Rs 5,000, Resident not ordinarily resident and a non-resident
The total income from the above sources may exceed Rs 50 lakh.
- Who is eligible to file ITR-2 for AY 2021-22?
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, salary, bonus, commission or remuneration, by whatever name called, due to, or received by him from a partnership firm
- Have the income of another person like spouse, minor child, etc., to be clubbed with their income – if income to be clubbed falls in any of the above categories.
- Who is not eligible to file ITR-2 for AY 2021-22?
ITR-2 cannot be filed by any individual or HUF, whose total income for the year includes income from profit and gains from business or profession, and also who has income in the nature of: interest, salary, bonus, commission or remuneration, by whatever name called, due to, or received by him from a partnership firm.
- What are the changes in ITR-2 as compared to previous years?
In ITR-2 of AY 2021-22, you can choose to opt for the new tax regime under section 115BAC. Please note that option for selecting new tax regime u/s 115BAC will be available only till the due date of filing of return u/s 139(1).
Structure of ITR-2
ITR-2 is divided into: Part A: General information and Part B-TI: Computation of total income, Part B-TTI: Computation of tax liability on total income.
ITR-3 Form
The ITR-3 is applicable for individual and HUF who have income from profits and gains from business or profession. The persons having income from following sources are eligible to file ITR-3:
Have a business or profession (both tax audit and non-audit cases)
The return may include income from house property, salary/pension, capital gains and income from other sources.
The ITR-3 form is for those who do not qualify to file Form ITR-1 (Sahaj), ITR-2, or ITR-4 (Sugam).
In FY 2022-23, ITR-3 form was revised. Here are the changes:
> A new schedule VDA has been added to separately report your income from crypto/ other VDAs.
> If you treat income from VDAs as capital gains, a quarterly breakup will need to be given under the Capital Gains Schedule. In the new ITR-3, every VDA transaction will have to be reported along with the dates of sale and purchase.
> A few questions have been added in the new ITR 3 form to determine if you had opted out of the New Tax Regime in previous years.
> Foreign institutional investors (FII/FPI) must provide their SEBI registration number as an additional disclosure measure.
> There has been a small change in balance sheet reporting. According to the new ITR-3 form, advances received from individuals specified in Sec 40A(2)(b) of the Income Tax Act and others must be reported under the ‘Advances' heading in Source of Funds.
> Turnover and income from intraday trading must be reported under the newly introduced section ‘Trading Account'.
“The CBDT every year issues the new ITR Forms after incorporating the changes made by the Finance Act of 2023.
The department also introduces new fields in the ITR Forms to enhance the transparency of various transactions and increase the disclosures in claiming various deductions. The new ITR Forms for the assessment year 2024-25 have various new fields for disclosures, such as Legal Entity Identifier (LEI) number, an acknowledgement number of the Audit Report and UDIN, and details of the Capital Gains Accounts Scheme, etc. The new ITR forms require taxpayers to provide more detailed information to claim various deductions. This move by the CBDT is a step towards ensuring greater accountability and transparency in tax compliance,” said Naveen Wadhwa, Vice President, Research and Advisory, Taxman.
