The deadline for submitting ITR-2 and ITR-3 is July 31, 2024. However, taxpayers obligated to conduct income tax audits with business income must file ITR-3 by October 31, 2024, states an ET report.
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ITR-2 filing requirements
Individuals or Hindu Undivided Families (HUFs) falling under the following categories are mandated to file ITR-2:
- Not eligible to file ITR-1.
- Individuals or HUFs without income from the profit and gains of business or profession, and no income in the nature of interest, salary, bonus, commission, or remuneration from a partnership firm.
- Those having income from another person, like a spouse or minor child, to be clubbed with their own income.
Changes in ITR-2 for FY 2023-24
Mihir Tanna, Associate Director at S.K Patodia and Associates, was quoted as saying that the following additions have been made to ITR-2:
- Inclusion of Legal Entity Identifier (LEI) details.
- Details of contributions made to political parties if claimed, including date, mode of payment, and transaction details.
- Details of deductions for the maintenance, including medical treatment, of a dependent with a disability (Type of dependent,
PAN, Form 10IA details).
- Individuals or HUFs required to undergo tax audits can now verify ITR with EVC, which was previously possible only through DSC (Digital Signature Certificate).
An LEI (Legal Entity Identifier) is a unique 20-symbol code used for identification in the global financial system. It is mandatory for crediting refunds exceeding Rs 50 crore.
Documents required for filing ITR-2
To successfully file ITR-2, the following documents are required:
- Form 16 for salaried individuals.
- Form 16A or TDS certificate for individuals earning interest on fixed deposits or savings accounts.
- Form 26AS for verification of TDS on salary and other incomes.
- Rent receipts for individuals living in rented accommodation.
- Summary of annual profit/loss statement for capital gains from shares or securities.
- Details of tenant/local tax payment/interest on borrowed capital for those receiving rent from a property.
- Relevant documents demonstrating incurred losses during the current year or previous years.
- Also, collect supporting documents (e.g., insurance, donation, rent, tuition fee receipts) for tax deductions under sections 80C, 80D, 80G, 80GG, especially if they weren’t considered in your Form 16.
ITR-3 filing requirements
According to FAQs published by the Income Tax Department, ITR-3 is to be used by entities, including individuals or HUFs, having income under the head “profits or gains of business or profession” and are ineligible to file Form ITR-1, ITR-2, or ITR-4.