How to File ITR-2 or ITR-2A Online (AY 2016-17)

DISCLAIMER: This guide is for Assessment Year (AY) 2016-17. Although the information has been checked for correctness, no guarantees are made to that extent. Please verify the information with other sources as well.

For the last several years, I have been writing about how to file your income tax return online with emphasis on ITR-1 (the most common tax return). This year I will be explaining how to file ITR-2 and ITR-2A as well.

As you may know by now, ITR-2A must be filed by those who have the following sources of income:

  • Income from salary
  • Interest income from savings accounts and/or fixed deposits
  • Home loan and/or rental income from one or more house property

However if you have any of the following sources of income or assets, then you must file ITR-2 instead.

  • Capital gains from sale of shares, mutual funds or property
  • Foreign assets, irrespective of whether any income is earned from them or not

Note that if you have any income from a business or profession, then you must file ITR-4 regardless of other sources of income.

The following is the procedure to file ITR-2/2A tax return form. It is assumed that the reader already has an account on the Income Tax Department’s E-filing website.

1. Download and unzip the ITR-2/2A utility

You need to download the appropriate return preparation utility (ITR-2 or 2A) from the Income Tax Department E-filing website based on your source(s) of income. On the home page, click on the appropriate ITR form under the Downloads panel on the right to get to the download page.

You may use either the Excel- or Java-based utility for filing your return. In my blog post I will use the Java-based utility as it is easier to use.

The following are the contents of the ITR-2 Java utility ZIP file (ITR-2A has the same files as well). You need to extract the ZIP file in a folder as shown below, and then double-click on ITR.bat file to launch the Java program (or ITR-*.jar on Linux or Mac OS X).

ITR-2 Utility

2. Open the ITR-2/2A form

The ITR-2/2A return preparation utilities consist of the following tabs:

  • Instructions – Basic instructions to use the utility (pretty much useless!)
  • Home – List of all tabs in the utility. If you are sure that certain provisions or sources of income do not apply to you, you may disable those tabs here to simplify the menu.
  • Part A (General) – All your personal information such as name, PAN number, address, etc. goes here.
  • Part B (TI) * – Your total income computation is displayed here for reference purposes. You do not need to fill anything here.
  • Part B (TTI) – The tax computation for your income is displayed here. You need to enter your bank account details here (excluding dormant ones) and also verify that all the particulars are correct to the best of your knowledge.
  • IT – Any advance tax or self assessment tax paid by you via Challan ITNS-280 must be entered here (one entry per row).
  • TDS – Details of TDS debited from your salary income by your employer as well as TDS debited on your savings accounts and fixed deposits must be entered here (one per row).
  • TCS ** – Details of tax paid by you while purchasing gold bullion or jewellery of value above the specified limit.
  • Schedule S – Details of income from salary
  • Schedule HP – Details of income or loss from house property
  • Schedule CG *** – Details of income from capital gains on sale of shares or mutual funds or property
  • Schedule OS – Details of income from other sources (interest from savings accounts and fixed deposits, etc.)
  • Schedule CYLA * – Details of income after set-off of current year’s losses from capital gains and other sources. You do not need to fill anything here.
  • Schedule BFLA * – Details of income after set-off of brought forward losses of previous years from capital gains and other sources. You do not need to fill anything here.
  • Schedule CFL – Details of losses from capital gains and other sources to be carried forward to future years
  • Schedule VI-A – Deductions under Chapter VI-A. These details would be available in your Form 16.
  • Schedule 80-G – Details of donations made by you to specified charities that qualify for tax benefit under Section 80G.
  • Schedule SPI – Details of income of spouse, minor children, etc. to be included in your income.
  • Schedule SI * – Details of income chargeable at special rates. You do not need to fill anything here.
  • Schedule EI – Details of exempt income (income from interest on PPF accounts, dividends for which DDT has been paid, long term capital gains on which STT is paid, etc.)
  • Schedule PTI – Details of pass-through income from a business trust or investment fund
  • Schedule FSI *** – Details of income from outside India and claim tax relief on the same
  • Schedule TR *,*** – Details of tax relief for tax paid on income outside India. You do not need to fill anything here.
  • Schedule 5A * – Related to taxation of individuals governed under Portuguese Civil Code. I will not be covering this.
  • Schedule FA *** – Details of foreign income or foreign capital assets or financial interest in foreign firms.
  • Schedule AL – Details of movable and immovable assets and liabilities for persons with aggregate income over Rs. 50 lakhs.

* All fields on this tab will be auto-filled. You do not need to fill anything here.
** This tab is not present in ITR-2
*** This tab is not present in ITR-2A

On several tabs, there will be some fields that need to be filled in by you and others that are greyed out or green in color. You only need to fill the white fields. The grey and green fields will be filled in automatically depending on the values entered in other fields.

ITR-2 menus

3. Fill the ITR-2/2A form

Before we start filling the form, we can auto-fill the known fields in the ITR by clicking on the Pre-fill button on the top panel. This will fill the known fields such as your personal details (from your PAN records or previous ITR filed) and your salary and TDS details from your Form 26 AS. Do check and confirm that the details and figures entered are correct, however.

ITR-1 prefill

You can also save the data entered if you wish to quit and continue later. To do so, click on the “Save” or “Save draft” buttons at the top and save the XML or .draft files generated.

Now let’s see how to fill each tab one by one.

a. “Part A – General” tab:

In the Personal Information section, fill in the requested personal details. Do ensure that your PAN number, mobile number and E-mail ID are entered correctly. You can leave the “Income Tax Ward/Circle” field blank. You may provide your Aadhaar and Passport number if applicable. Also select your employment category (Govt./PSU/Others).

Fill the Filing Status section appropriately as follows:

  • Select Return filed as “11 – On Or Before Due Date” assuming you are filing the return before the due date. Otherwise select “12 – After Due Date”. If you are filing a return in response to a tax notice, select the appropriate option and mention the notice number below.
  • If you are filing tax returns for the first time this year then select “Original” return, otherwise select “Revised” return and mention the original return’s acknowledgement number and date.
  • Specify your residential status (Resident/NRI).

b. “Part B – TI” tab:

Nothing to be filled here.

c. “Part B – TTI” tab:

In the Refund section, enter the total number of bank accounts held by you (excluding dormant ones) and specify the IFSC code, account numbers and account type of all of them. The first account should be the one where you wish to receive your tax refund (if applicable).

In Row 15, enter “Yes” if you have any foreign assets and/or income. This will enable entries in Schedule FA.

In the Verification section, acknowledge that all particulars entered by you are accurate.



d. “IT” tab:

Here, enter the details of any advance tax or self-assessment tax paid by you (one entry per row). The details should match with that in your Form 26 AS. This section will be auto-filled if this option is selected.

e. “TDS” tab:

Here, enter the details of TDS deducted by your employer or banks on your salary and interest income respectively. The details should match with that in your Form 26AS. This section will be auto-filled if pre-fill option is selected.

f. “TCS” tab:



Here, enter the details of tax paid by you while purchasing gold bullion or jewellery of value above the specified limit (as per the Form 27D issued by the shopkeeper/seller). This section will be auto-filled if pre-fill option is selected. Note that in ITR-2 this table is part of TDS tab itself.

g. “Schedule S” tab:

Here, enter the details of your employer (name, PAN and address) and your income from salary, excluding perquisites listed in Form 12BA (given along with Form 16) and allowances under Section 10 (HRA, conveyance allowance, medical reimbursement, etc.) and professional tax under Section 16. The total should come up to your “Income chargeable under the head ‘salaries'” as per your Form 16.

Then enter the exclusions individually in the respective fields. The individual amounts would be listed in your Form 16.

h. “Schedule HP” tab:

Here, enter your income or loss from one or more house property owned by you.

  • The income would include earnings from rent for properties that are let out:
    • Enter rental income earned in 1(a)
    • Enter rental income due but not received in 1(b)
    • Enter property tax paid to the municipal corporation in 1(c) as this expense qualifies for tax deduction in case of rented properties.
  • The loss would include interest outgo on any home loan taken on the property:
    • Enter interest component of home loan in 1(h) (up to Rs. 2 lakhs for self-occupied and actual value for let out properties). Principal component of home loan need not be entered here as it would be covered under Section 80C.

Repeat this for all properties owned by you.

You can get the interest and principal components of your home loan repayment from your Final Home Loan Interest Certificate for the last year which you can get from the bank.

i. “Schedule CG” tab:

Here, enter the details of short term and long term capital gains earned by you on the sale of property, shares, mutual funds, etc. The details are to be entered as follows:

  • Short term capital gains (STCG) on sale of property to be entered in A1
    • Purchase value to be entered in (bi)
    • Expenses on home improvement and/or renovation in (bii)
    • Expenses on sale of property (legal fees, taxes, transfer charges, etc.) in (biii)
    • Sale value to be entered in (ai)
  • STCG on sale of listed shares or equity-oriented mutual funds to be entered in A2
    • Purchase value to be entered in (bi)
    • Sale value to be entered in (a) (excluding brokerage, commission, etc.)
  • STCG on sale of unlisted shares (e.g. RSUs, ESOPs or shares listed on foreign stock exchanges) to be entered in A5
    • Purchase value (converted to Indian Rupees) to be entered in (bi)
    • Sale value (converted to Indian Rupees) to be entered in (a) (excluding brokerage, commission, etc.)
  • Long term capital gains (LTCG) on sale of property to be entered in B1
    • Purchase value (with indexation) to be entered in (bi)
    • Expenses on home improvement and/or renovation (with indexation) in (bii)
    • Expenses on sale of property (with indexation) in (biii)
    • Sale value to be entered in (ai)
  • LTCG on sale of debt-oriented mutual funds to be entered in B2
    • Purchase value to be entered in (bi)
    • Sale value to be entered in (a) (excluding brokerage, commission, etc.)
  • LTCG on sale of unlisted shares to be entered in B7
    • Purchase value to be entered in (bi)
    • Sale value to be entered in (a) (excluding brokerage, commission, etc.)

NOTE:

  • Listed shares are those that are listed on Indian stock exchanges and on whose sale Securities & Transaction Tax (STT) is paid. These could be RSUs/ESOPs given by your employer or shares purchased by you directly on foreign stock exchanges.
  • Unlisted shares are those that are not listed on Indian exchanges and whose sale does not attract STT. These may be shares of Indian or foreign companies.

The tax slab for various instruments is as follows:

Type of assetPeriod for attracting LTCGTax on STCG
Tax on LTCG
Listed shares1 year15%0% (tax free)
Equity mutual funds1 year15%0% (tax free)
Debt mutual funds3 yearsAdded to taxable income20% with indexation
Unlisted shares3 yearsAdded to taxable income20% with indexation
Property3 yearsAdded to taxable income20% with indexation

The above table is only for reference purposes. As long as you enter the values in the appropriate fields, the utility will take care of calculating the tax and you do not need to do anything. For more details, refer to this link.

For details on what expenses can be deducted from sale price of property or shares or bonds while calculating capital gains, refer to this link.

j. “Schedule OS” tab:

Here, enter details of your income from other sources such as:

  • Dividend income which is not tax-free in 1(a) (such as dividends from foreign shares)
  • Interest income from savings accounts and fixed deposits in 1(b)
  • Other income such as income from royalty, technical services rendered, lotteries, etc. in 1(c) or 1(d). Even Google AdSense income can be declared here provided it is not substantial (if so, use ITR-4 instead)

As for interest income, you can get the details from your bank statements and Form 16A. You can also get the details from your Form 26AS in case TDS has been deducted on this income.

You must add the total interest earned on all your bank accounts plus fixed deposits and enter it here. Note that you will get a deduction of up to Rs. 10,000 on interest earned on savings accounts under Section 80TTA (to be declared in “Schedule VI-A” tab later).

You may also claim deductions towards any expenditure incurred on earning the above income in 1(hi) and 1(hii).

h. “Schedule CYLA” tab:

This tab has details of total income after set-off of any losses from capital gains and other sources in the current year. You do not need to fill anything here.

i. “Schedule BFLA” tab:

This tab has details of total income after set-off of losses from capital gains and other sources brought forward from previous years. You do not need to fill anything here.

j. “Schedule CFL” tab:

This tab has details of losses from capital gains and other sources to be carried forward to future years. This tab would also be filled automatically if the pre-fill option is chosen.

k. “Schedule VI-A” tab:

Here, you must enter the details of deductions under Chapter VI-A as listed in your Form 16. In case you have forgotten to claim a deduction through your employer, you may claim the same now.

Some notable deductions are:

  • 80C – EPF/PPF contribution, life insurance premium, home loan principal, etc.
  • 80D – Premium paid for medical / health insurance
  • 80G – Donation to specified charities (populated automatically from Schedule 80G)
  • 80TTA – Deduction up to Rs. 10,000 on interest earned on savings bank accounts

For a complete list of deductions, please refer to this link.

l. “Schedule 80G” tab:

Here, you need to declare any donations made by you to notified charities or entities that enjoy tax exemption under Section 80G of the IT Act. Depending on the nature of the entity, you may be eligible for tax deduction on 50 – 100% of the amount contributed. To determine the degree of exemption your contribution qualifies for, refer to this link. If still doubts persist, call the entity and check.

You must enter the donation details in one of the four tables (A, B, C or D) based on the exemption category that it qualifies for. Most private NGOs/charities fall under Table D (50% exemption with qualifying limit). Govt. run funds like Prime Minister’s Relief Fund, etc. fall under Table A (100% exemption without qualifying limit).

NOTE: You are eligible for tax benefit on donations only up to 10% of your gross total income. Any amount exceeding this limit will not be tax deductible. Refer to this link for details.

m. “Schedule SPI” tab:

Under certain conditions, your spouse and/or minor child’s income must be added to your income. For details, refer to this link. I will skip this part.

n. “Schedule SI” tab:

Details of incomes claimed by you that are chargeable to tax at special rates will be listed here. You do not need to fill in anything here.

o. “Schedule EI” tab:

Details of income earned by you that is fully exempt from income tax must be entered here. This includes:

  • Interest income from specified instruments (such as PPF) in 1
  • Dividend income (on which Dividend Declaration Tax has been paid) in 2
  • Long Term Capital Gains on sale of listed shares and equity mutual funds in 3

For the complete list of incomes that are fully tax exempt, click here.

p. “Schedule PTI” tab:

I will skip this tab. Please refer to alternate sources for details.

q. “Schedule FSI” tab:

Details of income earned outside India from salary, capital gains, house property, etc. and tax paid abroad on the same must be entered here (in Indian Rupees).

r. “Schedule TR” tab:

Details of tax relief claimed on tax already paid on foreign incomes will be shown here. You do not need to enter anything here.

s. “Schedule 5A” tab:

This is applicable only for individuals governed by Portuguese Civil Code. I will skip this tab.

t. “Schedule FA” tab:

Details of all foreign assets and any foreign income earned from business or sale of assets should be reported here as follows:

  • Details of foreign bank accounts to be reported in A
  • Details of RSUs granted/vested, ESOPs exercised and/or ESPPs purchased must be listed in B (Details of Financial Interest in any Entity) as follows:
    • There must be one entry for each purchase, exercise or grant. If RSUs/ESOPs/ESPPs are acquired in batches then there must be one entry per batch.
    • “Total investment (at cost)” must be purchase cost of shares. This is the market price at the time of vesting/exercise/purchase of RSUs/ESOPs/ESPPs respectively, multiplied by number of shares granted/exercised/purchased.
    • If not sold yet, then “Income derived from asset” must be 0 and subsequent fields must be “Not applicable” or blank.
    • If sold, then “Income derived from asset” and “Income taxable and offered in this return” must be the sale value (in Indian Rupees), “Schedule where offered” must be “Schedule CG” and “Item number” must be A5 or B7 (based on whether the sale qualifies for STCG or LTCG).
  • Details of immovable property owned abroad must be listed in C
  • Details of other capital assets owned abroad must be listed in D
  • Foreign income from business or profession as well as any other foreign income must be listed in G

Schedule FASchedule FA

NOTE: For more details on how to declare income or loss foreign shares/RSUs/ESOPs, refer to this blog post.

u. “Schedule AL” tab:

Details of movable and immovable assets and liabilities for persons with aggregate income over Rs. 50 lakhs must be declared here.

4. Check if additional taxes are due

After all the details are entered, you must go back to “Part B – TTI” tab and check Row 12 (Amount payable). This must be 0. If so, you may proceed directly to Step 7. If not, then you need to pay additional tax to cover the deficit as explained below.

5. Pay balance taxes (and penalties) if applicable

If you need to make any additional tax payments over and above what has already been paid, you can do so as follows:

a. Go to the Online E-Tax Payment System at https://onlineservices.tin.egov-nsdl.com/etaxnew/tdsnontds.jsp.

b. Click on “Challan No./ITNS-280” (Payment of income tax). On the next page, select the following:

– Tax applicable: (0021) Income tax – other than Companies
– Type of payment: (300) Self-assessment tax

c. Enter your other details (name, address, PAN number, etc.), choose your bank from the list and click on “Proceed” at the bottom. You will be taken to your bank’s website for payment.

d. On the payment page, enter the balance tax amount and pay it.

e. On completion of payment, you will be shown the “E-challan” (e-receipt) for your payment. Save it on your computer and take a printout for your records.

6. Update the ITR form and recalculate tax

After paying the balance tax, you must go to “IT” tab and enter the BSR code, date of payment, serial number and amount of tax paid from the challan into the IT table. You must enter one challan per row if you have made more than one payment.

Once done, click on “Re-Calculate” button again. Now, the value in Row 12 must be zero, indicating that no additional tax is payable.

7. Submit ITR form

After verifying that all data entered by you is correct and no additional tax is payable, click on “Submit” button at the top to upload your return to the IT Dept. E-filing website. With this, your income tax return is submitted. You will shown a confirmation prompt upon successful submission and asked to download the ITR-V file which you must do.

8. E-verify the ITR submission

Since last year, the IT Dept. has launched an e-verification option which eliminates the need to send the ITR-V by post after uploading the ITR. Now the ITR uploaded can be instantly verified online as follows:

  • For those having an Aadhaar number linked to their PAN records, an OTP will be generated and sent to the mobile number in your Aadhaar record. You can then enter the OTP and verify your ITR submission.
  • For those who don’t have a linked Aadhaar number, they can login to internet banking of any of their bank accounts and then click on Income Tax E-Filing option in their netbanking website to return to the IT Dept. E-filing website and e-verify the ITR submission.

ITR e-verification

For detailed steps to e-verify your IT return, check this link.

Once the ITR is e-verified, an ITR Acknowledgement will be generated. You must download and save it for reference along with the ITR-V.

With this, your IT return submission process is complete!

NOTE: Both the ITR-V and Acknowledgement PDF files are password-protected. To open them, enter your PAN number (in lowercase) followed by date of birth (in ddmmyyyy format) as the password.

Please take a minute to verify that all the entries in the ITR Acknowledgement are correct. If not, you may need to file a revised return with necessary corrections.

Useful Links:


Signature

58 Comments

  1. AnuragAnurag07-08-2017

    My salary is not showing in part b. How to update this?

  2. nkgnkg07-07-2017

    Thank you. Very helpful !!

  3. Tapan Kumar DeyTapan Kumar Dey10-01-2016

    Hi, my cousin is deputed to London in February 2016. In itr2, what will be his residential status? He is working in a MNC.
    He has opened an account there. So, that should also be mentioned or not in the return. If required, in which column he should mention the details.

    Thanks in advance.

  4. AlokAlok08-19-2016

    Thanks for the detailed blog,…I have one question though, if one has an IRA (retirement) account, which section should that be mentioned ? A or B ?

    • AlokAlok08-19-2016

      Adding to the retirement question, by IRA I meant the traditional IRA, also where does 401K details go ?

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