ITR filing FY 2024-25: The Income Tax Department has enabled online ITR-2 filing for FY 2024-25, allowing taxpayers with salary, capital gains, and cryptocurrency income to file returns by September 15, 2025. Significant changes to ITR-2 include segregated capital gains reporting, permissible capital losses on share buybacks, increased asset disclosure threshold, and detailed deduction information.
ITR Filing Season Kicks Off: Is Form 2 Ready for You?
The taxman cometh, and this year, he’s arrived a little earlier. The Income Tax Department has already activated the online functionality for filing ITR-2 for the assessment year 2024-25 (financial year 2023-24). If you’re one of the taxpayers who uses this form, this is your cue to start gathering your documents and getting your ducks in a row.
But what exactly is ITR-2, and who needs to pay attention? Let’s break it down.
Who Needs to Use ITR-2?
ITR-2 isn’t a one-size-fits-all form. It’s specifically for individuals and Hindu Undivided Families (HUFs) who don’t have income from profits and gains from business or profession. Think salaried employees with significant investment income, retirees with pensions and interest earnings, or individuals who primarily earn from capital gains.
Here’s a more detailed breakdown:
* Individuals and HUFs with income from salary or pension.
* Those with income from house property (more than one house).
* People earning income from sources like interest, dividends, and capital gains.
* Individuals who are directors of a company.
* Those who have invested in unlisted equity shares.
* Individuals with income from other sources, like winnings from lotteries or horse races.
* Anyone who is a resident but not ordinarily resident (RNOR) and has assets located outside of India.
If any of these scenarios apply to you, ITR-2 is likely the form you’ll need. If you’re running a business, you’ll need to choose a different ITR form.
What’s New with ITR Filing this Year?
While the core process of ITR filing remains largely the same, staying up-to-date with any tweaks or clarifications from the Income Tax Department is always wise. Although the specifics for this year are still unfolding, it’s safe to assume the department will be pre-filling more information based on your PAN, making the process smoother. Double-check everything pre-filled to ensure accuracy. Incorrect pre-filled data is still your responsibility to correct.
For instance, details regarding your salary income, TDS deductions, and certain investment details will likely be automatically populated. However, you are responsible for verifying this information against your Form 16, bank statements, and other relevant documents. Any discrepancies must be corrected before you submit your return.
Getting Started with ITR-2 Filing
The process itself is fairly straightforward, especially if you’re familiar with the Income Tax portal. Here’s a step-by-step guide:
1. Visit the Income Tax e-filing portal: Navigate to the official website of the Income Tax Department.
2. Login: Use your PAN, Aadhaar number, or User ID and password to log in. If you don’t have an account, you’ll need to register.
3. Download ITR-2: Go to the “e-File” section and select “Income Tax Returns,” then “File Income Tax Return.” Choose the assessment year 2024-25. Select “Online” as the filing mode and pick ITR-2 as the applicable form.
4. Fill in the details: Carefully fill in all the required information. Double-check everything before proceeding. Make sure you have all your necessary documents handy.
5. Verify: Once you’ve filled out the form, verify the information using methods like Aadhaar OTP, Electronic Verification Code (EVC), or by sending a signed copy of ITR-V to CPC Bangalore.
6. Submit: After verification, submit your return.
Even with pre-filled data and a user-friendly interface, errors can happen. Here are some common pitfalls to watch out for during ITR filing:
* Incorrect PAN: Double-check your PAN. An incorrect PAN can lead to serious issues.
* Misreporting Income: Report all sources of income accurately. Don’t forget about interest income from savings accounts or fixed deposits.
* Claiming Ineligible Deductions: Only claim deductions you are actually eligible for. Familiarize yourself with Section 80C, 80D, and other relevant sections. If unsure, consult a tax professional.
* Ignoring TDS: Ensure that your TDS details match the details reflected in Form 26AS.
* Failing to Verify: Not verifying your ITR is akin to not filing it at all. Make sure you complete the verification process.
Don’t Delay: Why Early Filing is a Good Idea
While the deadline for filing ITR is still some time away, there are several advantages to filing early. For starters, it gives you ample time to correct any errors you might have made. Filing early also reduces the chances of facing technical glitches on the Income Tax portal due to heavy traffic closer to the deadline. Plus, if you’re due a refund, you’ll receive it sooner.
Consider starting the ITR filing process as soon as you have all the necessary documents.
Get Professional Help If Needed
Tax laws can be complex, and navigating them can be daunting. If you find yourself struggling, don’t hesitate to seek help from a qualified tax professional. They can provide personalized guidance and ensure you’re maximizing your deductions and complying with all applicable regulations. A little investment in professional advice can save you a lot of headaches down the road. Learn more about our tax preparation services and how we can help streamline your filing process.
The early activation of ITR-2 online filing is a welcome move. By understanding the form’s applicability, avoiding common errors, and starting early, you can navigate the tax season with ease and peace of mind. Happy filing!
