Posted by Filing income tax returns is an essential process in the Indian tax system. It is not only a legal action but also an ethical duty of every citizen to pay their taxes. It can vary based on your income, source of income, and other factors. To simplify compliance, the income tax department has categorised taxpayers. One such form is the ITR-2, designed for individuals and Hindu Undivided Families (HUFs) who are not engaged in any profession or business.
So, who should file ITR-2? This form is meant for those without a business or profession, making it important for individuals and HUFs falling into this category. To ensure a smooth e-filing of income tax, it’s essential to download and fill out the ITR-2 form. Here, you will understand the specific requirements for each form, streamlining the tax filing process and helping you meet your obligations without hassle.
Steps for E-filing: Downloading and Filling ITR-2
- Begin the e-filing process by logging in to the e-filing portal using your user ID and password.
- On your Dashboard, click “e-File” and then select “Income Tax Returns” to access the file income tax return section.
- Choose the Assessment Year as 2023-24 and the mode of filing as Online. Click “Continue” to proceed.
- Select your filing status and choose the appropriate Income Tax Return (ITR) form. You can seek guidance or proceed if you already know the form.
- After selecting the ITR form, note the required documents, and click “Let’s Get Started” to begin the filing process.
- Carefully review the pre-filled data, make changes if necessary, and confirm at the end of each section. Enter remaining or additional data as needed.
- Enter income and deduction details in different sections. Once completed and confirmed, click “Proceed” to move to the tax computation section.
- Review the summary of your tax computation. Choose the “Pay Now” option if there is a tax liability. If there is no tax liability or you are eligible for a refund, proceed to preview and submit.
- Upon selecting “Pay Now,” you will be redirected to the e-Pay Tax Service for tax payments. Follow the prompts to make the payment.
- After successful payment, return to the filing process by clicking “Return to Filing.”
- Click “Preview Return,” enter the place, select the declaration checkbox, and click “Proceed to Preview.”
- Preview your return and proceed to validation. Once validated, move to the verification section and select your preferred option to verify your return.
- Choose the e-verification option for a quick, paperless, and secure verification process. Ensure pre-validation of your bank account and linking of PAN with Aadhaar.
- Receive a success message with the Transaction ID and Acknowledgment Number. Confirmations will also be sent to your registered mobile number and email ID.
- Explore additional topics such as authorising/registering as a representative, dashboard features, e-filing returns, password-related actions, and more.
- Complete the process by ensuring you’ve pre-validated your bank account, linked PAN with Aadhaar, and refer to additional user manuals if needed.
- Congratulations, your e-filing process is complete. You’ve successfully submitted your Income Tax Return through the online mode.
What documents do I need to file ITR-2?
To file ITR-2 successfully, you must gather essential documents supporting your financial information. Here’s a breakdown of the documents required based on different income sources:
- If you earn a salary, you’ll need Form 16, issued by your employer. Form 16 provides a detailed summary of your salary income, tax deductions, and TDS (Tax Deducted at Source) details.
- If you’ve earned interest on fixed deposits or savings accounts, and TDS has been deducted from the interest income, you’ll need TDS certificates. Specifically, you’ll require Form 16A, issued by the deductors (banks or financial institutions).
These documents are crucial in providing accurate and detailed information about your income, tax deductions, and TDS. Ensure you have these documents before you start filing your ITR-2. Additionally, it’s advisable to organise these documents in an orderly manner to streamline the filing process and minimise errors.
Providing accurate and complete information is essential for a smooth and error-free filing process. If you have income from other sources or specific deductions, refer to the relevant documents associated with those income streams while preparing to file your ITR-2.
Conclusion
Filing ITR-2 is crucial for individuals and HUFs without a business or profession. The e-filing process, outlined in simple steps, ensures a hassle-free experience. Additionally, understanding the required documents, such as Form 16 for salary income and Form 16A for interest earnings, is essential for accurate filing. For a seamless process, gathering and organising these documents beforehand is advised.
While GST doesn’t directly apply to income tax returns, staying informed about related topics, including GST apply on certain transactions, is beneficial. By following these steps and providing accurate information, you can complete your Income Tax Return and meet your obligations efficiently. Congratulations on completing your e-filing journey.