Big Update For E-filing of Income Tax Return Form 2 For FY 2022-23 (AY 2023-24) Available Via Offline Method

Big Update For E-filing of Income Tax Return Form 2 For FY 2022-23 (AY 2023-24) Available Via Offline Method

The income tax department has recently made available the offline form ITR-2 for filing income tax returns (ITR) for the financial year 2022-23 (AY 2023-24). In the previous month, the CBDT had announced the availability of offline forms for ITR-1 and ITR-4. 

It is important to note that the online ITR forms are not yet active. Currently, only the Excel utility for ITR-1, ITR-2, and ITR-4 forms has been released by the tax department.

Therefore, individuals who intend to file their income tax returns (ITR) immediately should download the utility tool from the income tax e-filing website. The form must be uploaded to the income tax e-filing portal after completion of the utility form by furnishing all the relevant details of income & deductions.

For the current year, there haven't been significant changes to the income tax return form. However, one notable modification is the inclusion of a section requiring information about transactions involving virtual currencies and digital assets. 

It's important to note that when submitting the ITR form, whether through offline or online means, it must be duly verified. Failure to verify the ITR by the taxpayer will result in non-processing by the income tax department.

What can be the consequences of filing an incorrect ITR 2?

If you do not file a relevant ITR form then the income tax department may send you a notice related to the same issue. Therefore, it is worth noting that you choose the correct ITR form for filing your returns and to avoid tax notices from the IT department. 
 

Who Needs to file ITR 2? 

Individual taxpayers and Hindu Undivided Families (HUFs) who do not have income from business or profession should utilize ITR-2 if they fulfill any of the following criteria:

• Holding investments in unlisted equity shares 
• Having income from - salaries, 
• Income from more than one house property, capital gains
• Income from interest income, dividends, etc. 
• Earring an income from assets outside India like dividends from foreign companies' shares etc. 
• Hindu Undivided Family  & a director of a company
• Holding assets outside India 
• In case your income source is from bets on horse racing, winnings from the lottery, etc.
• If TDS applies to you for some cash payments made during the financial year 2021-22 (AY 2022-23)
• If the income from the agricultural source exceeds Rs 5,000