ITR 2 – FY 2020-21 / AY 2021-22

ITR 2 – FY 2020-21 / AY 2021-22

The income tax department has designed various ITR forms depending on multiple criteria. Taxpayers have to choose the proper ITR forms to file their returns. Income Tax Return (ITR) 2 Form – FY 2020-21 / AY 2021-22.

Who can file ITR 2 form?

ITR 2 is for an individual or a Hindu Undivided Family (HUF) who is not eligible to file Form ITR‐1 and who is not having any income under the head “Profits or gains of business or profession”.

Assessment Year for ITR 2 Form FY 2020-21

This Return Form is applicable for the assessment year 2021‐22 only, i.e., it relates to income earned in Financial Year 2020‐21.

Who is Eligible to File ITR-2 for FY 2020-21/ AY 2021-22?

This Return Form is to be used by an individual or a Hindu Undivided Family (HUF) who is not eligible to file Form ITR 1 (Sahaj) and who is not having any income under the head “Profits or gains of business or profession.”

Checklist of information/documents for filing ITR-2

• Registered user on the e-Filing portal with valid user ID and password
• Status of PAN is active
• Link PAN and Aadhaar
• Pre-validate at least one bank account and nominate for a refund (recommended)
• Valid mobile number linked with Aadhaar / e-Filing portal / your bank / NSDL / CDSL (for e-Verification)
• Download the offline utility or avail a third-party software (If using offline mode)

Structure of ITR 2

The Income Tax Return has the following structure:

Part A General

• Schedule Salary: Details of Income from Salary
• Schedule House Property: Details of Income from House Property
• Schedule Capital Gains: Capital Gains
• Schedule 112A and Schedule-115AD(1)(iii) proviso
• Schedule Other Sources: Income from other sources
• Schedule CYLA: Details of Income after set‐off of current year losses
• Schedule BFLA: Details of Income after Set off of Brought Forward losses of earlier years
• Schedule CFL: Details of Losses to be carried forward to future years
• Schedule VI-A: Deductions
• Schedule 80G: Details of donations entitled for deduction u/s 80G
• Schedule 80GGA: Details of grants for scientific research or rural development
• Schedule AMT: Computation of Alternate Minimum Tax payable under section 115JC
• Schedule AMTC: Computation of tax credit under section 115JD
• Schedule SPI: Income of specified persons (spouse, minor child, etc.) includable in the income of the assessee as per section 64
• Schedule SI: Income chargeable to tax at special rates
• Schedule EI: Details of Exempt Income (Income not to be included in Total Income or not chargeable to tax)
• Schedule PTI: Pass-Through Income details from business trust or investment fund as per section 115UA, 115UB
• Schedule FSI: Details of Income from outside India and tax relief
• Schedule TR: Summary of tax relief claimed for taxes paid outside India
• Schedule FA: Details of Foreign Assets and Income from any source outside India
• Schedule 5A: Information regarding apportionment of income between spouses governed by Portuguese Civil Code
• Schedule AL: Assets and Liabilities at the end of the year

Part B – Total Income (TI) Computation of total income Tax Paid

Part B-TTI: Computation of tax liability on total income. Income Tax Return (ITR) 2 Form – FY 2020-21 / AY 2021-22.

Key changes (as compared to ITR for AY 2020‐21)

Key changes in the ITR 2 in FY 2020-21

• Option to avail benefit u/s 115BAC is provided in ITRs
• Choice of Filing ITR in response to notice u/s 153A and 153C is removed from ITR as a requirement to file ITR under these sections is omitted.
• In Schedule CG, the allowable difference between the total value of consideration u/s. 50 C and the property’s value as per stamp authority has been increased from 1.05 times to 1.10 times.
• In Schedule CFL, the bifurcation of PTI loss and other than PTI loss has been removed from “HP loss,” “Short term capital loss,” and “Long term capital Loss.”
• In Schedule 80GGA, w.e.f. 01.06.2020, the eligible limit of donation in cash is changed from Rs. 10,000 to Rs. 2,000. Hence date field is inserted to capture the date of donation in cash.
• In Schedule EI, the field for “Dividend Income” is removed from exempt income as for AY 2021‐22 onwards; dividend income will be taxable in the hands of shareholders. Similarly, corresponding Changes are also made in schedule OS, schedule Pass-Through Income (PTI) to remove reference of section 115O
• Schedule DI (Details of Investment) has been removed as it was relevant only for AY 20‐21
• Now, the assessee needs to disclose surcharge before “Marginal Relief” and after “Marginal relief” in Schedule Part BTTI.
• In Schedule TDS, earlier TDS credit is allowed only if corresponding income is offered for tax this year. However, an exception is being added for TDS u/s 194N.
• Upload level validations table is modified writ mapping changes and new rules.

Obligation to file a return

Every individual or HUF whose total income, before allowing deductions under Chapter VIA of the Income-tax Act, exceeds the maximum amount which is not chargeable to income tax is obligated to furnish his return of income. The claim of deduction(s) under Chapter VI‐A is mentioned in Part C of this Return Form.

What is the period covered during FY 2020-21 / AY 20201-22?

FY 2020-21 is the financial year 2020-21 starting from April 1, 2020, ending on March 31, 2021. AY 2021-22 is the assessment year 2021-22, relevant to the financial year 2020-21 (also called the previous year 2020-21).

Who should not file ITR-2?

This Return Form should not be used by an individual whose total income for Assessment Year 202122includes Income under the head “Profits or Gains of Business or Profession.”

Who should mandatorily file Income Tax returns?

Any Individual whose total income before allowing deductions under chapter VI-A of the Income Tax exceeds the basic exemption limit should mandatorily file the income tax return.

The basic exemption limit for FY 2020-21 / AY 2021-22 is as follows:

• The individual below 60 years of age is Rs 2.50 Lakhs
• Resident senior citizens who are 60 years and above but below the age of 80 years is Rs 3.00 Lakhs
• Resident super senior citizens who are above 80 years of age is Rs 5.00 Lakhs
• The Finance Act (No 2) of 2019 has inserted Seventh Proviso to Section 139(1) of the Income Tax Act to make it mandatory to file an income tax return once the expenditure/transaction amount exceeds the prescribed threshold.
• The total Deposit in the current account is Rs. 1 crore or more
• Foreign Travel expenditure of Rs 2 Lakh or more
• Amount spent for more than Rs 1 Lakh on the consumption of Electricity
• Any other conditions prescribed

FAQ’S

How much time does it take to process ITR 2?

Generally, the credit of refund process takes about 20-45 days from the date of e-verification of the income tax return.

How many times can you e file after being rejected?

You can re-submit your e-filed return as many times as necessary until the filing deadline in October. However, we recommend that after three unsuccessful attempts (with the same e-file error), you print, sign, and mail your return. Some e-file issues cannot be resolved except by the IRS.

What if the e-file is rejected after the deadline?

If you receive a rejection of your e-filed return by the day after the filing deadline (usually April 15), the IRS gives you a rejection grace period of five days to refile a timely filed rejected return. Your return will be considered late if it isn’t submitted successfully to the IRS by midnight of May 17.

What is Annexure‐less Return Form?

No document (including TDS certificate) should be attached to this Return Form. All such documents enclosed with this Return Form will be detached and returned to the person filing the return.

I don’t have an Aadhaar number or Aadhar enrolment number. Can I still e-file my tax return?

No, an Indian resident has to quote the Aadhar number in an income tax return. So ITR can be filed without an Aadhar number (12 digits) or Aadhar enrolment number (28 digits)

It is recommended to apply for Aadhaar and quote the Aadhar enrolment in the ITR. Income Tax Return (ITR) 2 Form – FY 2020-21 / AY 2021-22.