CERTAIN CHANGES IN ITR YOU MUST KNOW ABOUT

Income Tax Return refers to the forms that individuals file to the Income Tax Department with regards to their annual income and tax. All citizens of India must file these returns under the Income Tax Act of 1961. ITR consists of various forms which are applicable depending on the category and criteria of means of income of the individual. The ITR processes only those forms which are filed by eligible individuals under the appropriate category. Thus, it is vital to know which Form to use in a particular case. rnThe ITR-2 Form applies to all the citizens who are ineligible to file ITR-1, inclusive of Residents, Non- Residents of India as well as Not ordinarily residents of India. It applies to both individuals as well as HUF. The Income-tax Act, 1961 and the Income-tax Rules, 1962 compels the individuals to file their tax returns by the end of every financial year. Every year, the financial year ends on 31st March, and the due date for filing income tax returns is 31st July. So, the assessee has a period of four months to prepare their Income tax returns for the Income-tax department. An assessee can complete ITR filing online as well as offline. The ITR-2 Form is an essential part of this process, as stated by the Government of India. Individuals acquiring income from salaried employment, owning more than one property, individuals earning profits from capital gains, etc. can file for Income tax returns using ITR-2 form. Individuals making money through various other legal sources such as lottery winning, Racehorse betting, legal betting etc. also fall under this category. If the income in the financial year exceeds more than INR 50,00,000, the individual is liable to file an INR-2 form. rnIndividuals or HUF with business as their source of income as well as partners in a partnership company are ineligible to fill INR-2 forms. Before filing for ITR, it is necessary to note a few recent changes:- ● One of the significant additions in the ITR-2 is the residential status of the assessee. Individuals have to state their residential condition as a resident, non- resident or not ordinarily resident of India. ITR for NRI states that they must provide tax identification number while others must give information on the number of days of residence in India. ● Directors must provide their Director Identification Number along with their company information, PAN of company and any shares that they possess. ● It is mandatory to present the details of the buyer if you have sold any of your property (s) during the year in the ITR-2 Form. If the value of sale has crossed INR 50,00,000, the individual has to deduct TDS. ● Owners with more than one property are required to declare their income in ITR-2. If there is a case of rent dues, it should also be mentioned alongside property details in ITR-2 Form. ● Taxpayers are obligated to reveal any unlisted company’s shares that they might hold. Details including the name of the company, PAN of the company, no. of shares, the value of share during acquisition, date of purchase, etc. should be stated in the Form as well.