In India, taxpayers are classified by income sources, with different Income Tax Return (ITR) forms designated for each category. The ITR-2 form is intended for Hindu Undivided Families (HUFs) and individuals whose income does not stem from business or professional activities. This form is suitable for those with income from multiple sources, excluding business income.

Who is Eligible to File ITR-2?

The ITR-2 form is applicable to individuals and HUFs who earn income from sources other than “Profits and Gains from Business or Profession.” You should file ITR-2 if your income comes from any of the following sources:

• Income from Salary or Pension
• Income from House Property: This includes income from one or more properties.
• Capital Gains: Income or loss from the sale of investments or assets, covering both long-term and short-term gains or losses.
• Income from Other Sources: This includes winnings from horse races, lotteries, or other legally recognized gambling.
• Agricultural Income: If you earn more than Rs 5,000 from agricultural activities.
• Foreign Assets or Income: Income from foreign sources or ownership of foreign assets.
• Non-Resident or Resident Not Ordinarily Resident (RNOR) Status
• Directorship: If you hold a directorship in any listed or unlisted company.

These eligibility criteria clarify who should file ITR-2.

Documents Required to File ITR-2

The ITR-2 is an attachment-free form, meaning no documents are submitted during filing. However, having the following documents on hand can facilitate a smooth filing process:

• Form 16/16A: Contains details of salary and Tax Deducted at Source (TDS).
• Form 26AS, AIS, or TIS: These provide information on tax credits, TDS, and other tax-related data.
• Bank Statements: Reflect income from interest, dividends, and other financial transactions.
• Capital Gains Documents: Records of transactions for any assets sold, such as stocks or property.
• Foreign Asset and Income Details: Necessary if you own foreign assets or earn income abroad.
• Identification Proof: Aadhaar card, PAN card, and any other identification and contact information required.

Having these documents prepared will help organize the filing process and ensure that all relevant information is readily available for accurate reporting.