Income Tax return for FY 2022-23 were announced, however till date only ITR 1 and 4 were available for filing. Now ITR 2 is also available for filing on e-filing website.
So, let’s have a look on what are some important amendments in ITR 2 and who are eligible to file the same.
First of all ITR 2 is the biggest and exhaustive return as far as Individual and HUF is concerned where Individual and HUF is not earning income from business or profession and ITR 2 is also the first and basic return for non resident individual to file in India.
Let’s first see who are eligible to file ITR 2 Form:
This Return Form is to be used by an individual or a Hindu Undivided Family (HUF), whether resident or non-resident, 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”
This Return Form should not be used by an individual whose total income for the Assessment Year 2023-24 includes Income under the head “Profits or Gains of Business or Profession”.
Important Changes made in ITR 2:
In Schedule Salary
New field added for 89A relief claimed in earlier previous year, taxable in current AY-“Income taxable during the previous year on which relief u/s 89A was claimed in any earlier previous year.”
In Schedule CG
New field added-A. Short term capital Gains (STCG) Sl. No. 6a-Amount deemed to be long-term capital gains (Previous year in which asset transferred) 2020-21.
New Field added-Sl. no. C2 – Income from transfer of Virtual Digital Assets (Item No. B of Schedule VDA)
New Field added-Sl. no. C3 – Income chargeable under the head “CAPITAL GAINS” (C1 + C2)
In schedule OS,
In existing SL No 1e new field has been inserted as static field to provide that the income of a specified person from specified account shall be taxed as prescribed manner u/s 89A.
Schedule TCS has been revamped to include carry forward and claiming of brought forward TCS. Also, TCS collected in the hands of any other person has been allowed to be claimed here.
New Schedule added, “Income from Transfer of Virtual Digital Assets”.
In Schedule VI A,
New field added- “Any other deductions” and under this field a dropdown for newly inserted Section 80CCH should be provided with select being a default option. 80CCH (applicable for only Central govt employees) to allow deduction u/s 80CCH.
In Schedule 80G,
ARN (Donation Reference Number)- New field has been inserted in Table D. In Schedule Part-B TI
New field added-Capital gain chargeable @ 30% u/s 115BBH (C2 of schedule CG)
New field added-Total capital gains (3c + 3d)
Although ITR’s are available we won’t suggest anyone to start filling the ITR’s now as we have learned from previous years CBDT might make few changes in them hence we would advice you to wait till month end and then start filing ITR or if you wish to claim any TDS credit then we would recommend to wait till 15th of June for TDS credit to be available.
No major change has been made in ITR Forms but the method/ system of filing ITR form has been changed.
Also, CBDT has mentioned that it has discontinued Java utility from AY 2021-22 onwards and now assessee needs to prepare Income Tax return using common utility provided by Income tax department which generated JSON file but Excel and Java utility shall be available for earlier years.
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Disclaimer: The views presented in the above article are personal views of our team and has no legal binding. For any legal opinion consult a tax professional.
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