ITR FORM-2
ITR, or Income Tax Return, serves as a vital document through which taxpayers report their income and corresponding taxes to the income tax department. Governed by the Income Tax Act of 1961, this legislation outlines the various ITR forms and their respective procedures. One such form, ITR-2, caters to individuals and Hindu Undivided Families without income from professional or business activities.
Understanding ITR-2 is essential for individuals earning from sources like salary, house property, capital gains, or other avenues besides business or profession. In India, taxpayers are segmented based on their income, with specific ITR forms assigned accordingly. Among these, ITR-2 is tailored for individuals and Hindu Undivided Families devoid of income from professional or business activities.
Documents Required to file the ITR Return
The ITR 2 Form is devoid of annexures, eliminating the need for attaching any additional documents during submission. However, it's essential to gather the following documents and information beforehand to facilitate a seamless filing process:
Form 16/16A: These documents contain pertinent details about your salary and tax deductions (TDS).
Form 26AS/AIS/TIS: This statement provides crucial information regarding tax credits, TDS (Tax Deducted at Source), and other relevant tax-related data.
Bank Statements: Compile bank statements reflecting income from interest, dividends, or other financial transactions.
Capital Gains Details: Gather necessary transaction documents if you've sold assets such as property or stocks.
Details of Foreign Assets and Income (if applicable): Collect relevant documents if you possess foreign assets or have earned income abroad.
Aadhaar Card, PAN Card, and Other Identification and Contact Information: Ensure you have these identification documents readily available for reference during the filing process.
Understanding the Sections of ITR-2 Form for Seamless Filing
When completing the ITR 2 Form, it's crucial to adhere to the following instructions and guidelines:
Fill out the form in the specified order: Part A, all schedules, Part B-TI, Part B-TTI, and then proceed to the verification section.
If any schedules are irrelevant to your circumstances, strike them out and denote 'NA' (Not Applicable).
Use 'NA' for any item that does not relate to your financial situation.
Round off all figures to the nearest rupee, except for total income/loss and tax payable, which should be rounded off to the nearest ten rupees.
If you are a government employee, select 'Government' as your employer category. If you work for a public sector company of the Central/State Government, opt for 'PSU.'
Penalty for the ITR-2 Filing
Failing to submit income tax returns on time can result in various penalties, the severity of which depends on your total income. Individuals earning above Rs 5 lakh may face a penalty of Rs 5,000, while those earning less may incur a reduced penalty of Rs 1,000.
Additionally, if you owe taxes and miss the filing deadline, you'll be subject to additional interest at a rate of 1% per month until the return is filed. In more serious cases, penalties can be imposed for underreporting or misreporting income. Underreporting may lead to penalties of up to 50% of the tax underreported, while misreporting can result in penalties of up to 200% of the misreported tax amount.
Continued failure to file tax returns despite reminders from tax authorities may result in prosecution procedures. Depending on the outstanding tax liabilities, this could lead to imprisonment ranging from three months to seven years.
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Why Prayog Enterprise to file ITR
Expert Guidance: Prayog Enterprise offers expert assistance to ensure accurate filing of your ITR-2 income tax return. Our team of tax professionals guides you through the selection of the appropriate form based on your income sources, ensuring compliance with tax regulations.
Error-Free Filing: We meticulously calculate your tax liability and conduct thorough error checks to minimize the risk of penalties or tax notices. Our proactive approach prioritizes timely filing, giving you peace of mind during the tax season.
Efficient Refund Processing: If eligible, Prayog Enterprise assists in processing your income tax refund efficiently, ensuring you receive the refunds you are entitled to without delay.
Responsive Support: Our dedicated team of tax experts is readily available to address your queries and provide personalized guidance throughout the filing process. We are committed to delivering exceptional customer service and ensuring a smooth experience for our clients.
Up-to-Date Compliance: Prayog Enterprise keeps you informed about tax law changes and deadlines, ensuring that you remain compliant with the latest regulations. We strive to empower our clients with the knowledge they need to make informed financial decisions.
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