Individuals or Hindu Undivided Families (HUFs) with any income from business or profession are not eligible to file ITR-2. It is also not for those eligible for ITR-1 (income up to ₹50 lakh from salary/one house property/other sources). Companies, firms, and trusts cannot file ITR-2.
Form ITR – 2 can be used by an individual and Hindu Undivided Family who is not eligible to file ITR-1 Sahaj and not having income from “profit and gains of business or profession” and also not having income from “Profits and gains of business or profession” in the nature of interest, salary, bonus, ...
ITR-2 is a tax return form for individuals and Hindu Undivided Families (HUFs) who do not have income from profits and gains of business or profession.
ITR-1 (Sahaj): Salaried individuals with exempt income up to ₹5,000. ITR-2: If exempt income exceeds ₹5,000 or includes agricultural income above ₹5,000.
Income Ceiling: ITR-1 has an income limit of ₹50 lakh total income. If your total taxable income for the year is more than ₹50,00,000, you cannot use ITR-1. Such taxpayers will need to use ITR-2 (or another appropriate form) because ITR-2 has no upper income limit – it can handle incomes above ₹50 lakh without issues.
Certain NRIs: If the NRIs are only generating income from dividends or interest, or if their income is subject to TDS, then they might be exempted from filing tax returns. Senior Citizens (above 75 years): Senior citizens above the age of 75 whose income consists of pension and interest can be exempt from filing ITR.
NRIs are not eligible for the simpler ITR-1 form and must file using ITR-2 or ITR-3 depending on their specific financial situation. Choosing the correct form ensures compliance with Indian tax laws and avoids penalties or delays.
All individuals and entities with a taxable income are required to file ITR. It is mandatory for all taxpayers whose income exceeds the exemption limit – ₹2.5 lakhs (under 60 years) for the old regime and ₹7 lakhs for the new regime. Can I file the ITR after the due date?
ITR-2: If the individual derives income from more than one house property or has capital gains income or his income exceeds Rs. 50 Lakhs, ITR -2 can be filed. ITR-3: In addition to salary income, if the individual earns income from business or profession, ITR-3 can be filed.
This Return Form can be filed with the Income Tax Department in any of the following ways, - (i) by furnishing the return in a paper form; (ii) by furnishing the return electronically under digital signature; (iii) by transmitting the data in the return electronically and thereafter submitting the verification of the ...
An individual whose sole income has been subjected to final withholding tax pursuant to Sec. 57 (A) of the Tax Code, or who is exempt from income tax pursuant to the Tax Code and other laws, is not required to file an income tax return.
Due date for filing ITR 2 online FY 2024-25
The due date to file ITR-2 for the financial year 2024-25 (assessment year 2025-26) is 31st July 2025. In case of revisions, the extended deadline is 15th September 2025.
Basic Condition 2: The 60-Day + 365-Day Rule
An individual is a Resident if they were physically present in India for 60 days or more in the relevant financial year (FY 2024-25) AND for 365 days or more in the four years just before that year (FY 2020-21 to FY 2023-24).
Usually, it takes 4-5 weeks for the refund to be credited to the account of the taxpayer. However, if refund is not received during this duration, the taxpayer must check for intimation regarding discrepancies in ITR; check email for any notification from the IT department regarding the refund.
With the recent changes in the Indian Income Tax Act, it's now possible to pay zero tax on a salary of up to Rs. 7 lakhs. To pay zero tax on a 7 lakh salary using the old tax regime, maximize deductions: Claim Tax Rebate under Section 87A.
Who Needs to Apply for an ITR?
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.
ITR-2 is an Income Tax Return form used by individuals and Hindu Undivided Families (HUFs) who do not have income from business or profession. This form is generally applicable to taxpayers earning income from: Salary or pension. Capital gains (short-term or long-term)
The main difference between ITR 1 and ITR 2 is that ITR 1 is used for individuals with a salary income under Rs. 50 lakhs, while ITR 2 is for those with capital gains and multiple house properties. This article gives complete information on ITR1 vs ITR2 and all the differences involved.
Not filing your taxes can have serious consequences, such as penalties, losses, and even imprisonment. It can also prevent you from receiving certain benefits. So, ensure you file your taxes on time every year to avoid any hassles.
ITR-2: This tax form is meant for individuals and Hindu Undivided Families (HUFs) with income from capital gains but without any business or professional earnings. ITR-3: The ITR-3 form is designed for those earning income from a business or profession.
At a glance
The minimum income amount to file taxes depends on your filing status and age. For 2025, the minimum income for Single filing status for filers under age 65 is $15,750 . If your income is below that threshold, you generally do not need to file a federal tax return.
ITR-2 - Applicable for Non-Resident Individual
This return is applicable for Individual (whether Resident or Non-Resident) and Hindu Undivided Family (HUF). Having Income under any head other than Profits and Gains of Business or Profession.
If your total income is between Rs 2.5 lakhs to Rs 5 lakhs then you will face a penalty of Rs 1000 and if your total income exceeds Rs 5 lakhs then penalty of Rs 5000 will be levied for filing ITR after 31st July 2025. Yes, If you have capital gains and income from salary, you will have to file ITR-2.
Follow the below steps to file and submit the ITR through online mode: