ITR2 is meant for people having income from salary, income from other sources, income from capital gains and income from house property.
Thus, there is a lot of information to be filled in ITR2. Let’s see step by step instructions on filling this income tax return form ITR2.
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In “How to fill Income Tax Return Form 1 (ITR1) – Instructions and Video Tutorial”, we saw how to fill Income Tax Return Form ITR1. ITR2 covers two more heads of income (income from capital gains and income from house property), and therefore, needs more information from the income tax assessee than ITR1. |
There are many fields in common between ITR1 and ITR2 – for these fields, please see the article or the video “How to fill Income Tax Return Form 1 (ITR1) – Instructions and Video Tutorial”.
Let’s understand the extra fields from ITR2. (Please note that only the fields not there in ITR1 are explained here)
(To download Income Tax Return Forms for free, please go to “Income Tax (IT) Return Filing – Which ITR form to use?“)
Part B – TI – Computation of Total Income
2. Income from House Property
Here, you need to put the income that you have earned from your house(s).
The taxable income from your house property is calculated in schedule HP of ITR2 (we would come to that later), so just put the amount from box 3c of schedule HP here.
3 (a) (i) Short Term Capital Gain (u/s 111A) (STCG)
This is STCG made on sale of securities that are covered by the Securities Transaction Tax, or STT. These would include exchange traded stocks and equity mutual funds.
Put the amount from box A5 of schedule CG here.
3 (a) (ii) Short Term Capital Gain (Other) (STCG)
This is STCG made on sale of securities that are not covered by the Securities Transaction Tax, or STT. Put the amount from box A4 of schedule CG here.
3 (a) (iii) Short Term Capital Gain (STCG)
Add amounts from 3ai and 3aii, and put it in 3aiii.
3 (b) Long Term Capital Gain (LTCG)
Put your LTCG here – Put the amount from box B5 of schedule CG.
3 (c) Total Capital Gains
Add the amounts from boxes 3aiii and 3b, and put it in box 3c.
6 Losses of current year set off against 5
If you want to set off any loss from the current year against the income for the current year, put it in box 6.
This amount would come from a sum of amounts in boxes 2vi and 3 vi of schedule CYLA of ITR2.
(Want to know more about set off and carry forward of losses? Please read “Set Off and Carry Forward of Losses – Capital Gains and House Property”)
7 Balance after set off current year losses
The amount in box 5 is your total taxable income for the year. Subtract the amount in box 6 from the amount in box 5, and put it in box 7.
8 Brought forward losses set off against 7
If you have losses brought forward from previous year(s), you need to mention them here. Put the amount from box 2vi of schedule BFLA here.
9 Gross Total Income
Subtract the amount in box 8 from the amount in box 7, and put it in box 9.
10 Deductions under chapter VI-A
This amount would come from box n of schedule VIA.
14 Losses of current year to be carried forward
If you have losses from the current year that could not be set off against income from the current year, you can carry them forward to the next year.
Put the amount from box xi of schedule CFL here.
Part B – TTI – Computation of Tax Liability on Total Income
This section is exactly as it is in ITR1. Please see “How to fill Income Tax Return Form 1 (ITR1) – Instructions and Video Tutorial” for more details.
Schedule S – Details of Income from Salary
1 Salary
Put your salary here. It should be your salary excluding all allowances, perks (perquisites) and profit in lieu of salary. You would get this amount from your Form 16.
2 Allowances Exempt under section 10
There are many allowances that would fall here, but the main item for most of us would be House Rent Allowance (HRA), transport allowance and Leave Travel Allowance (LTA).
Other things falling here would be scholarships granted to meet the cost of education, uniform allowance (Rs. 10,000 per year), children’s education allowance (Rs. 1,200 per year per child for upto 2 children), etc.
3 Allowances not exempt
Put the amount of all other allowances here.
4 Value of perquisites
If you are provided perquisites by your employer (like housing, free or concessional education, etc), you need to put their value here.
5 Profits in lieu of salary
If you have received any amount from your employer as a substitute for your salary, please mention it here.
An example of this would be notice pay received by you if you are terminated from your job and receive some months’ salary instead of being able to serve the notice period.
6 Income chargeable under the head Salaries
This would be the sum of amounts in boxes 1, 3, 4 and 5. Put it in box 6.
Schedule HP – Details of income from house property
1a Annual letable value / rent received or receivable
If you have received rent from your apartment or house, please mention it here.
If you have more than one house, and none is given out on rent, one of the houses is treated as if it is given out on rent. If this is the case, please put the annual letable value of the house here. This is the rent you can receive if the house is given out on rent.
1b The amount of rent which cannot be realized
This is the rent that you were not able to get from the tenant.
1c Tax paid to local authorities
If you have paid any taxes to the local authorities, please put the amount here.
1d Total
Add amounts in boxes 1b and 1c, and put it in box 1d.
1e Balance
Subtract the amount in 1d from 1a, and put it in 1e.
1f 30% of 1e
Calculate 30% of the amount in 1e, and put it in 1f.
This is the basic exemption that you get against your income from house property.
1g Interest payable on borrowed capital
If you have taken a loan for buying this house (home loan), and are paying interest on it, indicate the amount here. Also include any portion of per-EMI interest that you are claiming.
(For more information on income tax benefits of a home loan, please read “Income Tax (IT) Benefits of a Home Loan / Housing Loan / Mortgage”)
1h Total
Add 1f and 1g, and out it in 1h.
1i Income from house property
Subtract 1h from 1e, and put it in 1i. This is your total income from house property 1.
If you need to indicate income from another house, repeat these steps (2a to 2i)
3a Rent of earlier years realized under section 25A/AA
If there was rent in previous years that could not be realized, and has been realized in this year, please put it in 3a. This should be included here even if you are no longer the owner of that house.
3b Arrears of rent received during the year under section 25B after deducting 30%
If you receive extra rent for past years in the current year, please include the amount here after reducing it by 30%. Again, this should be included here even if you are no longer the owner of that house.
3c Total
Add 3a, 3b, 1i and 2i, and put it in 3c. This is your income under the head “income from house property”.
Schedule CG – Capital Gains
A. Short Term Capital Gain (STCG)
1 From assets in case of non-resident to which first proviso to section 48 is applicable
This is when the STCG rules for resident Indians also apply to non-residents. If this is applicable to you, pleas put the amount in box 1.
2 From other assets
a Full value of consideration: This is the amount you received from the sale of the asset.
b Deduction under section 48:
i Cost of acquisition: This is the amount you paid for the purchase of the asset. Put it in box bi.
ii Cost of Improvement: This is the amount you paid for the improvement of the asset. Put it in box bii.
iii Expenditure on transfer: This is the cost you incurred for transferring the asset. Put it in box biii.
iv Total: Add bi, bii and biii, and put it in biv.
c Balance
Subtract biv from 2a, and put it in 2c.
d Loss, if any, to be ignored under section 94(7) or 94(8):
This is about loss arising from dividend stripping – such loss is not permissible as a loss, and has to be mentioned here.
e Exemption under section 54B / 54D
This is to mention capital gain arising out of transfer of agricultural land or from compulsory acquisition of land / building of an industry.
Such a gain is exempt from tax, and should be mentioned here.
f Short-term capital gain
Add 2c and 2d, and subtract 2e from it. Put this in 2f. This is your short term capital gain.
3 Amount deemed to be short term capital gains under section 54B / 54D / 54EC / 54ED / 54G / 54GA
Here, you need to put amounts that are deemed to be short term capital gain. Examples would be amount received on liquidation of a company, amount invested u/s 54EC withdrawn before the lock-in period, etc.
4 Total short term capital gain
Add 1, 2f and A3, and put it in A4. This is your total capital gain.
5 Short term capital gain under section 111A included in 4
If you have any STCG made on sale of securities that are covered by the Securities Transaction Tax, or STT, you need to include even that in this STCG calculation – even if it is exempt from tax.
Mention such amount in box A5.
6 Short term capital gain other than referred to in section 111A
Subtract A5 from A4, and put it in A6.
(To download Income Tax Return Forms for free, please go to “Income Tax (IT) Return Filing – Which ITR form to use?“)
(Continue to Page 2 for Long Term Capital Gains, and the subsequent schedules…)
Other articles you might be interested in:
- Set Off and Carry Forward of Losses – Capital Gains and House Property
- How to save / avoid Long Term Capital Gain (LTCG) Tax on Sale of a House
- Long Term Capital Gains (LTCG) on Sale of a House – Calculation and Income Tax
- Long Term and Short Term Capital Gain – Income Tax Calculation
- How to fill Income Tax Return Form 1 (ITR1) – Instructions and Video Tutorial
- The stock market is falling – Time to invest?
- Residential / Commercial Property for a Non Resident Indian (NRI)
- An introduction to Hedge Funds
- Banks increase interest rates for deposits and lending (loans)
- Matthews India Fund MINDX: A good proxy to invest in India
- Why does the financial / fiscal year start from 1st April?
- Tata AIG – Maharaksha Accident and Injury Policy
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B. Long Term Capital Gain (LTCG) 1 Assets in case of non-resident to which first proviso to section 48 is applicable This is when the LTCG rules for resident Indians also apply to non-residents. If this is applicable to you, pleas put the amount in box 1. |
2 From other assets where proviso to section 112 (1) is not applicable
This is assets where you want to claim the indexation benefit.
(To download Income Tax Return Forms for free, please go to “Income Tax (IT) Return Filing – Which ITR form to use?“)
a Full value of consideration: This is the amount you received from the sale of the asset.
b Deduction under section 48:
i Cost of acquisition after indexation: This is the amount you paid for the purchase of the asset, indexed for inflation using cost inflation index numbers. Put it in box bi.
ii Cost of improvement after indexation: This is the amount you paid for the improvement of the asset, indexed for inflation using cost inflation index numbers. Put it in box bii.
(To know more about saving LTCG by using indexation, please read “Long Term Capital Gains (LTCG) on Sale of a House – Calculation and Income Tax”)
iii Expenditure on transfer: This is the cost you incurred for transferring the asset. Put it in box biii.
iv Total: Add bi, bii and biii, and put it in biv.
c Balance
Subtract biv from 2a, and put it in 2c.
d Exemption under section 54 / 54B / 54D / 54EC / 54F / 54G / 54GA
If you have to claim exemption of LTCG under any of these sections, put it in box 2d.
e Net Balance
Subtract 2d from 2c, and put it in 2e.
3 From other assets where proviso to section 112 (1) is applicable
This is assets where you do not want to claim the indexation benefit.
a Full value of consideration: This is the amount you received from the sale of the asset.
b Deduction under section 48:
i Cost of acquisition without indexation: This is the amount you paid for the purchase of the asset, without indexing it for inflation using cost inflation index numbers. Put it in box bi.
ii Cost of improvement without indexation: This is the amount you paid for the improvement of the asset, without indexing it for inflation using cost inflation index numbers. Put it in box bii.
iii Expenditure on transfer: This is the cost you incurred for transferring the asset. Put it in box biii.
iv Total: Add bi, bii and biii, and put it in biv.
c Balance
Subtract biv from 3a, and put it in 3c.
d Exemption under section 54 / 54B / 54D / 54EC / 54F
If you have to claim exemption of LTCG under any of these sections, put it in box 3d.
e Net balance
Subtract 3d from 3c, and put it in 3e.
4 Amount deemed to be long term capital gains under sections 54 / 54B / 54D / 54EC / 54ED / 54F
If there is any amount deemed to be long term capital gains under any of these sections, put it here.
5 Total LTCG
Add 1, 2e, 3e and 4, and put it in B5.
If the amounts in 2e and / or 3e are losses, treat them as zero here. That is, do not subtract!
C. Income chargeable under the head “Capital Gains”
Add A4 and B5, and put it in C.
D. Information about accrual / receipt of capital gain
Split your long term / short term capital gains depending on the date of such gains, and mention them under relevant cells in the table.
Schedule OS – Income from Other Sources
1a Dividend, Gross
If you have received any dividends, mention the amount in 1a.
1b Interest, Gross
If you have received any interest, mention the amount in 1b.
1c Rental income from machinery, plants, buildings
If you have such rental income, indicate it in 1c.
1d Others, Gross (excluding income from owning race horses)
If you have any other income, indicate it here.
e Total
Add up 1a, 1b, 1c and 1d, and put it in 1e.
f Deductions under section 57
- i Expenses: If you have any expenses, put it in fi.
- ii Depreciation: If you have any depreciation, put it in fii.
- iii Total: Add fi and fii, and put it in fiii.
g Balance
Subtract fiii from 1e, and put it in 1g.
2 Winnings from lotteries, crossword puzzles, races, etc.
If you have any such winnings, put the amount in 2.
3 Income from other sources (other than from owning race horses)
Add up 1g and 2, and put it in 3.
If amount in 1g is a loss, treat it as zero here.
4 Income from owning and maintaining race horses
- a Receipts: Put your earnings in 4a.
- b Deductions under section 57 in relation to (4): Put the amount in 4b.
- c Balance: Subtract 4b from 4a, and put it in 4c.
5 Income chargeable under the head “Income from other sources”
Add 3 and 4c, and put it in 5.
If 4c is a loss, treat it as zero here. In that case, indicate the amount in 4c in schedule CFL.
Schedule CYLA – Details of Income after set off of current year losses
This schedule is for adjusting losses from the current year. Fill up the relevant details in the respective cells of the table.
Schedule BFLA – Details of Income after set off of brought forward losses of earlier years
This schedule is for adjusting losses from the previous year(s). Fill up the relevant details in the respective cells of the table.
Schedule CFL – Details of losses to be carried forward to future years
This schedule is for carrying forward losses that could not be set off. Fill up the relevant details in the respective cells of the table.
(Want to know more about set off and carry forward of losses? Please read “Set Off and Carry Forward of Losses – Capital Gains and House Property”)
All the schedules after this in ITR2 are the same as in ITR1. Please see the article or the video “How to fill Income Tax Return Form 1 (ITR1) – Instructions and Video Tutorial” to learn more about them in detail.
(To download Income Tax Return Forms for free, please go to “Income Tax (IT) Return Filing – Which ITR form to use?“)
Other articles you might be interested in:
- Set Off and Carry Forward of Losses – Capital Gains and House Property
- How to save / avoid Long Term Capital Gain (LTCG) Tax on Sale of a House
- Long Term Capital Gains (LTCG) on Sale of a House – Calculation and Income Tax
- Long Term and Short Term Capital Gain – Income Tax Calculation
- How to fill Income Tax Return Form 1 (ITR1) – Instructions and Video Tutorial
- The stock market is falling – Time to invest?
- Residential / Commercial Property for a Non Resident Indian (NRI)
- An introduction to Hedge Funds
- Banks increase interest rates for deposits and lending (loans)
- Matthews India Fund MINDX: A good proxy to invest in India
- Why does the financial / fiscal year start from 1st April?
- Tata AIG – Maharaksha Accident and Injury Policy
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Dear Sir,
Can you send me any specimen form duly filled for taking rebate from Income tax Department
Warm rgds,
Rajeshwari singbal
Dear Rajeshwari,
Unfortunately, I do not have any filled-up ITR2 form that I can circulate.
But this article gives step-by-step directions about filling ITR2, and I am sure that would help you.
You can also have a look at the detailed video that I have prepared about filling ITR1 – most of the fields in ITR1 are also there in ITR2, and this video should also help.
Hi Pramod,
Apologies – I do now have a filled up ITR from as a sample!
Filling specimen of ITR2 form of Income Tax
Dear Sir,
Can you send me any specimen form duly filled & blank form for taking exmpetion on house loan from Income tax Department
Warm rgds,
Hi Ganesh,
It looks like you are asking about two things – tax exemption of HRA and income tax benefit for a home loan.
Unfortunately, you haven’t provided enough details to answer this accurately. But let me try.
Yes, you can claim HRA exemption. You can also claim tax benefit of the EMIs paid for a home loan along with HRA exemption.
You do not have to submit any documents with ITR2. The assessing officer (AO) can ask for these documents later if he deems it necessary.
As you said that the given details are insufficient so in such condition what min information you required to explain the matter appropriately.
Below note the details of situation
a) Property in Kalyan City – House Loan is already availed
b) Job Location – Navi Mumbai
C) Current Residence – Mumbai ( Staying on Rent )
Ganesh Dongare
Hi Ganesh,
Yes, you can claim HRA exemption as well as tax benefit of the EMIs paid for a home loan at the same time.
As you had mentioned in your initial query, if asked by the assessing officer (AO), you would need to convince him that you are staying in a rented place as it is located at a more convenient location for your work.
The the home that you own is given out on rent, you would not even need to convince the AO – you can safely claim HRA exemption and the EMIs paid for a home loan at the same time.
If the person having their property in one city and if he is staying in another city proximity to earlier one for job convinience purpose, can he submitt the rent receipt alongwith the loan details while filingthe ITR2 form.
Whether this will be applicable to avail the tax exemption ?
Ganesh Dongare
Dear Sir,
Under section of schedule for Capital gains in ITR2 and condition is that have borrowed home loan but yet have not made any transaction (i.e sale or purchase of the same asset) and no such rennovation & improvement had taken placed till date.
Can you brief me
a) wat values are to be required to insert in LTCG & STCG?
b) Also let me know wat this indexation indicates ?
c) Shall we leave blank the columns where it is not required to show any details or it is required to right as “Not Applicable” ?
Thx&Regds – Ganesh Dongare
Also let me know in ITR2, Tax Deducted at source (TDS)where need to be mentioned. ?
Ganesh
Hi Ganesh,
I am not sure if I understand your question correctly. Can you please rephrase it?
in any case, I believe you want to know more about capital gains and indexation.
Please check out “Long Term and Short Term Capital Gain – Income Tax Calculation” and “Long Term Capital Gains (LTCG) on Sale of a House – Calculation and Income Tax“.
You can put a dash (—) in these columns.
Hi Ganesh,
Please put it in Part B – TTI – Computation of tax liability on total income. Put it in fiels 9 – b. This is on page 2 of ITR2.
please send already written (filed) itr form 2 for house laon interest paid u/s24b (self occupied residence)
Hi Rahman,
Unfortunately, I do not provide filled up income tax return forms.
The interest paid for a housing loan would be claimed as an expense in “Income from house property”, and would therefore normally result in a loss under that head for a self occupied house.
Dear RaagVamdatt
I really appreciate your efforts in posting such a valuable article. I am sure, this will help lot of individuals who are planning to file their IT returns this year.
Hi Raag,
When i submitted my PAN Application form i was told to enter my name “Suresh” under last name field and sur name in first name field. So my Name in the Pan card is displayed as “R Suresh”. In the income tax E-filing website also my name details are mentioned as
First Name: My father’s name
Sur Name: My name
So Whether i should enter my name in the ITR form similar to the info displayed in the website or whether i can enter my name in “first name” field ?
Do i need to request for a PAN card change ?
Thank you
Regards
Suresh
Dear Raag,
Shall be glad if you could enligten me on the following 2 points:-
1) I have made a long term capital gain on the sale of shares where STT has been paid. As this is tax free I need to show it as exempt income in schedule EI (3) of ITR2. Do I need to show the details in schedule CG item B? If I do that, it gets added in my total income.
2) I have interest income from a number of FDs in a bank, These interests are paid quarterly and TDS deducted on due dates. The TDS certificate issued by the bank lists the details of the deduction made with dates. Do I have to reproduce the itemwise details or simply give the consolidated TDS in the TDS schedule.
- Gajapati
I am a salaraied person having no other income source.
I have taken housing loan & I am confused where to put Rs.1,50,000 — Interest on housing loan while submiting the return.
In my form-16, for total taxable income, home loan interest is get deducted from head of salries column
and Taxable income will get retrieved.
Example from form-16:
6. Income chargeable under the head \’salaries\’ (3-5) = 350000
7. Add: Any other income reported by the employee
LESS: INCOME / LOSS FROM HOUSE PROPERTY = -150000
8. Gross Total Income (6 7) = 200000
Since I have the Home Loan interest, which form (ITR1 or ITR2) should I fill?
Or do I need to fill both the forms?
Hi Suresh,
I believe you should apply for a change of name for the PAN card. Then, you should fill the correct details on the IT return.
Hi Gajapati,
1. Since the LTCG is from sale of shares where STT has been paid, it needs to be mentioned under schedule EI.
2. All TDS by different banks should be listed on separate lines (as the TAN would be different). If all the TDS has been done by just 1 bank, you can club it and show it on just 1 line.
Hi Sanjay,
You need to fill ITR2.
Mention the interest paid (Rs. 1,50,000) in schedule HP, cell “g” (interest paid on borrowed capital).
Due to this, cell “i” would become a negative Rs. 1,50,000, which is a loss from house property.
Sadly,despite buying these so called “Ready Reckoners”,I have yet to come across a filled up “specimen”.
In vain I have posted my requirement to TIN /Nabhi etc but no use. Best to do it any which way… who cares …u r not gonna get ur refunds anyway !
Dear Sir,
Could you please let me know if income from Dividend needs to be entered in Schedule OS 1a or Schedule EI 2. Because if I understand correctly; dividend income is not taxable so it should be part of schedule EI 2 and not Schedule OS 1a as it will be considered in total income and therefore tax will be applied. Please let me know if my understanding is correct.
Thanks and Regards
Mangesh
Hi Rajib,
You are right – you should be filing ITR2.
You would need to calculate the capital gain on sale of these shares. Since the shares were a gift from your father to you, the “cost of acquisition” would be the price at which your father acquired them.
You need to show only the transactions in which you sold the shares during 2008-09.
Full value of consideration would be the amount you got from the sale.
I want to submit my IT return newly from the Assessment year 2009-10.
I have few questions for which I am writing down for your suggestions. I hope you wont mind answering those.
1. I am a govt. salaried employee. I have invested some money from salary in share market. These are short-term capital gain. I have acquired those shares from my father’s demat account during 2008-09. Now I am to submit my IT return alongwith all the details. How should i start filling my ITR-2 form?
2. I hope i must show the transactions on sell and purchase of shares during 2008-09 only. Do I have also to submit information about the shares which are pending upto March09?
3. What to enter under 2a(full value of consideration) since i am submitting my first IT return.
Please suggest my queries taking out some of your valuable time.
Thankyou
Rajib De
Hi Mangesh,
You are right. The tax exempt dividend income would come under schedule EI, field 2.
Hi I m filling it by my own first time.
I wanted to know where should I enter Profession tax amt in ITR 2 ?
or I have 2 submit the net salary after deducting profession tax.
Another thing is related to TDS what is the difference between Deductor & employer? & where should I put my deatails.
Please help me with this ASAP
Hi Sir,
I need ur help to fill ITR 2,i had a house in Karnataka which is built on Loan and occupied by my parents. I am staying in chennai rented house. Is it possible to claim the HRA and Interest paid for Home loan for Tax deductions.If so how much is the limit for interest…is it 150000?
pls reply asap…thanks / Ranga
Can you send me a specimen filled up ITR-2 form with housebuilding property occupied by my family
Hi Smruti,
I am sorry, but I would not be able to provide a speciman ITR2.
Hi Ranganathan,
It is possible to claim HRA along with home loan tax benefits.
However, in your case, you would not be able to get tax benefit of home loan, as the land is in your parents’ name.
You would get the tax benefits only if you are also a co-owner of the land.
Hi Ankur,
Yes, please submit the net salary after deducting profession tax.
Form 16 is issued by your employer – the company employing you which had deducted tax at source (TDS) from your salary.
Form 16A is deducted by banks, etc from interest that you have earned. They are called “deductors”.
Hi thanks for your earlier help.
I am paying Home loan for my self Occu. property
because of the interest component it is coming negative as there in no income in that property.
& it is mentioned on 1st page of ITR2 tht if its possitive & nil then only should be entered.
So where should I enter my Int. paid on Hosue Property?
Sir,
My father is retd (pvt employee) and is 67yrs. Earlier I was working and have IT Returns. Iam planning to education aborad. Education loan is rejected as my father or mother are not having income.Though we have income he has never filed a return. We get income from rents,land lease in eluru and other sources. suggest whether I can file IT For my father to show a nil income.He took pan card recently.
In my form 16 I have some amount as exempt under section 10. In that form they deduct this amount before Gross total income is computer. My question is where does this get reduced from my Salary income in the ITR-2 form?
Just to clarify my previous email: I notice that in the schedule “S” part of the form, line 6 is computed as 1+3+4+5. I would have expected 1+3+4+5-2. Would that be the right way to compute it?
BTW, I really appreciate this service! Thanks on behalf of several people.
Regards,
-Badrinath
Hi Sir,
I am the owner of the house not my parent.my parents were staying there.
I am filling ITR-2 form for the first time. While filling ITR-2 where should I fill my travelling allowances which are exepted u/s 10 & Tax on employment.
Please help.
Thanks
Yogesh
Hi Ankur,
Put it in Schedule HP, field g.
Hi Ranganathan,
Yes, in that case, you can claim both. The limit for interest remains Rs. 1.5 Lakhs.
Hi Yogesh,
You have to fill in your income after deducting the professional tax from it.
The travel allowance (and other tax exempt allowances) need to be mentioned in Schedule S, field 2 “Allowances exempt under section 10″.
First of all, thanks a lot for putting together such a excellent article.. Very helpful for us.
I hope you can help me with few questions.
1. I have ST Loss, LT gain and LT loss (all through Equities/MFs);
LT loss through selling Equities is > LT gain through a FMP.
I plan to offset LT gains with portion of LT loss.
Is this valid ?.
I will carry forward the remaining LT loss and the full ST
loss to next year.
2. While filling Schedule-CG, should I mention the total amount realised with Selling in “Full Value of consideration” row and the corresponding Cost price in “Cost of Acquisition” ?.
Or simply mention the net loss alone in Cost of Acquisition, leaving other rows as zero. ?
3. Can I mention my Equitymaster “subscription” cost as “Cost of improvement” ? – thus adding it to the loss.
4. For filling Long term gains and other schedules you have given a link which is NOT active. Is that content still not ready or a issue with broken link ?.
Can you please provide the correct link ?.
Thanks,
Anand.
Hi Ratna,
You can definitely file returns for your father. However, you would not want to show his income as nil – won’t that defeat the whole purpose, as you want to show he has income that can support your education loan?
I believe he is not filing returns and not paying any income tax because his income is not taxable.
So, when you file his return, mention all the incomes, calculate the tax payable (which I believe would be nil), and then file the return.
Hi Anand,
Thanks a lot for your kind words…
1. I am not sure why you would want to set off long term gains against a loss – there is no income tax on long term capital gain from equities / equity MFs!
Also, LT loss from equities can not be set off against any gain, and can not be carried forward. (This is because LT gain itself is not taxed)
2. Please mention the total amount realized by selling in “Full Value of consideration” row and the corresponding Cost price in “Cost of Acquisition”.
3. No, you can not. This is primarily meant for physical assets like houses where structural improvements might have been done.
4. I would update the link – thanks for pointing this out!
Hi Badrinath,
In ITR2 schedule “S” field 1, you have to specify the salary after deducting amount exempt u/s 10. Then, in field 2, you have to specify this amount exempt u/s 10.
That’s why field 6 (income chargeable under the head “salaries”) is computed as 1+3+4+5.
Extremely useful information here, thanks for your time and effort in not only publishing this but also answering all the questions.
I have a question of my own. Some interest has been credit in my savings account (not FD). Is this interest income taxable or is it exempt? And where do I need to mention it? I am using ITR-2 to file my returns. Thank you.
Hi,
Very useful article.
My employer, an MNC, had given some company shares. When I sold them, I had to pay towards FBT to my company (@33.99%). They had paid the same to Govt of India.
In ITR2, where is this amount to be shown? It was not mentioned as part of TDS in Form16 given by the employer.
Hi,
Are the changes proposed in the recent budget applicable while filing returns this year(ie. this month)? eg. Removal of 10% surcharge- Since TDS had happened considering 10% surcharge, are we entitled to get this amount back ?
Thanks.
Hi Boopathi,
Thanks….
I would go with the first CA and suggest that you file ITR4. In any case, since the amounts are large, please take help of a competent CA.
Hi Kumar,
The budget presented just now is for FY 2009-2010. So, the provisions would not be applicable for filing the tax returns for FY 2008-09.
Hi Appusalu,
1. If you have losses from derivatives, I believe you would need to file ITR4 and not ITR2.
2. no, you can not set off capital losses against salary. You can carry them forward, though.
3. Ideally, yes. But since the amounts are large, it would be better if you have the contract notes with you.
I would advise you to take help of a practicing CA in your case, who would be able to fill the ITR correctly for you and would also ensure that you can save the maximum tax depending on the specifics of your case (especially due to derivative losses).
Hi Sreenidhi,
Thanks a lot for your kind words….
Yes, any interest income from savings account is taxable. Please mention it in schedule OS of ITR2.
Hi Kumar,
There are two stages of taxation of ESOPs.
One, when you exercise the option, and buy the shares. At that time, the tax is on the difference between the option price and the fair price of the shares. This tax is paid by the company, and is recovered from the employee. (This is what has happened in your case) This tax does not need to be mentioned in the ITR.
The other stage is when you sell the shares. This is a case of capital gains – long term or short term depending on the time of holding the shares – and is taxed accordingly.
The cost of acquisition is the fair price of the stock at the time of option exercise, and the selling price would be the price at which you sold the shares.
HI
I find Your comments and answers very useful. Thank you for the same.
Let me ask you a question on filing Income Tax return. I am a salaried person with annual taxable income of 5.5 lakhs. Income Tax (47000/-) has already been deducted from my salary and paid to the credit of IT department by March 2009 for the FY 2008-09. During the FY 2008-09 with a total investment of Rs. 3 lakhs I did lot of share trading (Delivery based short term trades, Intraday trades and Derivative trading) and suffered a total loss of around 1.75 lakhs. My enquiries are
1) In the column of Full value of consideration in ITR-2 should i enter the gross total value of sale of Delivery based, intraday based and Derivative based trading and in the cost of acquisition the total value of purchase of all the above?
2) Can I deduct the gross capital loss of 1.75 lakhs from my taxable salary income of 5.5 lakhs and accordingly claim for a refund of tax already paid. Or the capital loss can only be set off against capital gains, if any, arising in future years?
3) Will a statement of all the share/ derivative transactions prepared by me be sufficient for submitting along with ITR-2?
I would greatlu appreciate your reply at an early date as the last date for filing IT return is fast approaching
Thanking you in anticipation
APPUSALU
Dear Sir,
your comments and articles are very useful .I solved ITR issues for my friends. My friends recomended you for my issue. My issue is…same as Mr.Appusalu . My loss in Future and option alone is 2.5 lakh and share loss 25k
1.I checked one of CA in chennai, he told we need consider Future and option as bussiness income and need to file using ITR-4, other CA told to file using ITR-2. please tell me which form i need to use.
2. please suggest some good CA in chennai,Who knows all this and can help to file my returns.
Eagrly waiting for your reply
BoopathiRaju
i earned 30000 interest on saving/fixed deposit.
I have not till date payed any tax on that.i am in high tax bracket.
which challan i need to use pay this tax now,will it come under delayed advance tax or self assesment tax. how to calculate the interest on this if let us say, this interest was deposited in my account on 30 august 2008.
Sir,
I find that in the ITR 2 form under the schedule OS(Other Source) there is provision for filling income from dividends, interest etc. Under the schedule EI (Exempt Income) also there is provision for filling interst income, dividend income etc.Is both the interest and dividends expected in the schedules the same or different. If it is so does that mean all type of interest/dividend incomes are exempt income?
IF I have interst income from Fixed deposits/ savings bank account that is below the limit for TDS what proof/statement should i produce before the IT authorities to show that i have this much interest income.
An early response to my query is highly solicited.
Thanking you
Appusalu
Hi Appusalu,
The interest and dividend incomes expected in the two schedules are different.
>> IF I have interst income from Fixed deposits/ savings bank account that is below the limit for TDS what proof/statement should i produce before the IT authorities to show that i have this much interest income.
I guess you are saying that you have interest income on which the bank did not deduct ant TDS, and now you want to show it.
In that case, you don’t need any specific proof. Your FD / savings account statement mentioning the interest should suffice.
Hi Sonu,
You need to pay the tax using Challan 280. This would be self assessment tax.
You can download challan 280 here.
Till Dec-2007 i have submitted my return in Indore, Now i am staying in Mumbai since than. I intent to file return for 2007-08 and 2008-09. Where do i file my return in Indore only or in Mumbai? If in Mumbai do i need to give any document?
Dear sir,
I want open an Capital Gain account (before July 31) and deposit my LTCG amount earned by selling my old house last July. Please advise, What details should I provide in ITR2 and do I have to attach any other form or calculation along with ITR.
Thanks
Hi A C Jose,
Any amount deposited in a capital gains account is deemed to be invested in another house. That is, the amount deposited in this account is treated as if you have invested it to buy another house. Thus, you can claim exemption u/s 54 even if you have not actually bought another house.
Thus, in the ITR, mention this amount as exempt from LTCG tax. (Schedule CG – B – 2 – d in most cases)
Hi Bhushan,
If you have filed your return in Indore till last year, you should file it at Indore this year as well. At the same time, you should submit a letter requesting the IT department to transfer your case to Mumbai.
In previous year I had subbmitted ITR1 but I was paying interst (EMI) for homeloan and I had made partial payment of housing loan principle and I had shown this amount in chapter VI and necessary documents were enclosed,TDS of rs 1800 was refundable to me but i didnot get the refund till date whether I have to resubmit ITR2 for previous year or I will get refund ?
Dear Sir,
I have purchased a house in Dec 2008 and I am a salarized person the home purchased by me is through home loan the amount of stamp duty paid(including registration charge) by me is rs 41000 and is bowored by me this is not shown in my form 16 and TDS is of rs 3300 deducted from my salary,from sources I came to know that stamp duty paid is refundable in chapter VI so please guide me how to get refund of TDS by showing stamp duty paid me.and which ITR form I have to submit.
dear sirs,
Bcoz of some reasons, i changed job and last company didnt provide me for 16,or 16A anything which can tell that yes, tax has been deduced from my income. so what should i do? can i fill incometax without it if yes then how?
Sir,
Thank you very much for your replies to my earlier queries.
Let me ask you one more question. I suffered a short term capital loss of 1.75 lakhs in the FY 2008-09. In the previous years i don’t have any STC loss or gain.In this case in the schedule CYLA do i need to fill up any thing or can i skip it as NA? If yes in what column should I show my loss? I think i need to fill up the schedule CFL only to carry forward my current year losses. Am I right?
Thanking you in anticipation for an early reply.
Appusalu
Summary: This is for tax benefit on interest paid on home loan before I got possession in July 2008.
Interest paid in year 2007-08. Rebate to be received only in this year as I got possession (AY09-10).
However, I have not filed IT return for AY08-09 showing that interest (no carry forward of loss shown).
So, I am not able to set off that loss with my income this year.
Now – do I have a way out to show that loss.
Option 1: I had filed ITR 1 last year. I may refile my IT return (ITR 2) and show the carry forward of loss in that.
Issue: Restrictions on carry forward of loss if you are Refiling a return. However, relaxation is on Home property loss.
Could we refile a return for AY08-09 showinig the loss. Then I could file for AY09-10 and set off that loss with income this year.
Provide advice as how to get tax benefit.
Hi Ranganathan, I really appreciate your efforts in putting up such a detailed and useful information.
I’ve a query related to short term capital gains – Assuming I’ve made a profit of Rs 10000 by selling shares of X company and loss of 5000 on shares of Y company. Now for the purpose of ST gains , do I need to enter 5000 as net profit in schedule CG, or Rs 10000 need to be entered as profit, and Rs 5000 as losses in schedule CYLA ?
Thanks
Ritesh
Sir,
I have a doubt regarding Schedule S of ITR2. In section 1 of my form 16, gross salary of 500000 is mentioned. Then in section2, exemption u/s 10 of Rs 9600 is mentioned. And in section 4, under deductions, tax on employement, rs 2400 is mentioned. So, my question is, where to put the amount of 2400 in ITR2, schedule S.
Please help.
Hi Raag,
I do not have any questions. I have filled my ITR-2 by reading this article, the questions and answers.
I am very much thankful to you for the wonderful article and the instant, to the point reply’s to questions.
Thank you so much.
Regards,
Nilesh
Hi
I just came across your site and let me commend you for the wonderful responses.. I have filed online the last two years but every year I am unsure of some some items like CG.
I have a short term gain of Rs.2552 and I notice that this gets added to the total income.
But the stcg is 10% whereas the total tax income includes the stcg.
My question is where do i show the stcg tax amount on the PART B – TI -TTI? there are two rows – one for tax at normal rates and the other row is for long term cap gains other than securities.
Is this how it is done
total tax = ( (total inc-stcg)X normal tax rates + (stcg)x0.10 )
and fill it in the row for tax at normal rates?
Last year I made the mistake of paying normal taxes on stcg of 7500.. so roughly i have paid 1500 bucks extra… should i re-file last year’s return or should i consider bad debts and forget it?
Thanks and really appreciate your efforts
Krishna
hey can u tell me if i am filing my ITR-1 (income from salary) for first time should i give a copy of the pan card……..because i have already submitted my return in bandra IT office and now i am worried about it………please help……and tell the consequences.
Hi,
I have only salaried income hence I guess I need to use ITR-1. However, I’ve exemptions under Section 10 (HRA & Conveyance allowance). Since ITR-1 does not have any space to provide for these details, do I need to fill up ITR-2 (which has Schedule ‘S’ under which this can be provided?
Hi,
I have an FD and I have already paid tax on the interest of FD. Do I need to makean entry of this FD in ITR2? If yes, in which section?
I am a salaried person and I do share trading also occassionally. My total turnover in a year is less than 3 Lacs. Now earlier I used to file my return in ITR2 … But I read somewhere that if I do Intraday trading that can’t be considered as short term capital gain/loss. Hence I need to file ITR4. My question is even for the Intraday trading I am paying STT … So can’t I consider my Intraday Trading Gain/Loss under Short-Term Capital Gain/Loss?
If not, what would be the treatment for Intraday trading Gain/Loss for a salaried person?
Hi Ravi,
Yes, if a property is rented out, there is no limit on the amount of interest that can be claimed u/s 24 (there is no upper limit – not sure where the figure of Rs. 2,55,000 came from).
Hi Rujuta,
Yes, you should.
Interest earned on the FD would be part of “other income”. And tax paid on it should be shown in schedule TDS2 as per form 16A given to you by the bank.
Hi Jyotirmay,
Intraday trading can definitely be considered for short term capital gain or loss.
However, it depends on the amount of trading and ST capital gain / loss as a proportion of your salary.
If this is not significant, you should be able to claim it as STCG / loss.
But if it significant, this activity would be treated as your business, and you would need to file ITR4.
Hi Kirti,
Don’t worry – you do not have to submit a copy of your PAN card with your IT return.
Hi Prashant,
Yes, ITR2 should be better for you.
Hi Krishna,
Thanks a lot for your kind words…
You can definitely refile a revised return to get a refund of the excess tax paid last year. It might take some time, but you should get it.
Please mention the STCG amount in Schedule CG – 2. Then, mention the STCG from sale of shares / MFs in Schedule CG – 5 (Short term capital gain under section 111A included in 4). This way, it would not be added to your total income.
Please don’t forget to mention this same STCG amount in Schedule SI with code 111A and rate of 15%. (It is not 10% any more – it got increased to 15% from FY2008-09)
Hi Ritesh,
Thanks.
You can net these against each other, and show a total STCG of Rs. 5,000.
Hi Manishi,
Please mention the income after subtracting the amount of Rs. 2,400 (professional tax) – there is no separate place to mention it.
Hi Appusalu,
Schedule CYLA is for details from the current year. You need to fill it up only if you have some income against which you can set off this ST capital loss.
In your case, you can leave it blank.
Yes, Schedule CFL is to carry forward current year’s losses. So you should fill it up.
Hi Gagan,
Claiming tax benefit for pre-EMI interest paid or interest paid before possession is not through carry forward of any loss.
It is done u/s 24 – just link claiming tax benefit on interest paid through the EMI.
So, please claim it u/s 24 without worrying about the IT return of the previous year.
Hi Ashish,
If you want to claim income tax benefit of the interest paid, you should file a revised return through ITR2.
If you are just worried that you haven’t received a refund yet, you should not refile the return – the refund process can take a prolonged time!
Hi Ashish,
Yes, you can claim deduction of stamp duty and registration under section 80C.
If you are also claiming IT benefits for the EMI (for the interest paid), use ITR2. Otherwise, you can use ITR1.
Hi Rajat,
A form 16 is a must – it acts as a proof of income earned by you and tax paid by you.
Although an IT return has to be filed without attaching the form 16, I would not advise filing an ITR without having a proper form 16.
I was told that if the letable value/rent under schedule HP is declared the loan interest on the borrowed capital will go upto Rs2,55,000 as against Rs1,50,000 for regulat Loan interest benefit. Is this correct?
Filing Income Tax Return ITR in Indore Just Dial 98266 56240
Hi sir,
I m working in BSNL but due to some reasons I had not filed my return before 31st july Sir I want to claim refund of TDS deducted from my account please tell me what to do or where to file the return after last date?
Ashsih
Hi Ashish,
The procedure for filing the return after the due date is exactly the same as a fresh return. And since you don’t have to pay any tax, you would not have to pay any fine if your file before 31st March, 2010.
Dear Sir,
For e-filing i had selected the wrong assessment year i.e. for 16 iven by the company was for financial year 2007-08 and his document i have filled the ITR-2 by selecting assessment year 2007-08. I have already received the acknowledge for this. In actual it should be for assessment year 2008-09.
Please advice in this case. can I refill the ITR-2 for year 2008-09 by canceling the earlier ITR-2.
Regards,
Deshpande G.
Sir ,
Thanks for the great work you are doing.
I my case i have STCG but all other schedules are not applicable. So what should i fill in these NA areas. I intend to go for E-filing this year.
After E filing are we supposed to receive a acknowledgment from IT department by Post.
Sir ,
Thanks for the great work you are doing.
In my case i have STCG but all other schedules are not applicable. So what should i fill in these NA areas. I intend to go for E-filing this year.
After E filing are we supposed to receive a acknowledgment from IT department by Post.
Dear Sir,
Can you send me any specimen form duly filled for taking rebate from Income tax Department
Dear Sir,
Can you send me any specimen form duly filled for taking rebate from Income tax Department
Dear Sir,
Can you send me any specimen form duly filled for taking rebate from Income tax Department
Hello
Great site and great efforts
I have a query my employer has rounded off my TDS and deducted 4 rs less than the exact amount
Will that create any problem as when i fill ITR2 the calculate tax button makes it Tax Payable to Rs 4
Pl guide
Goldi
I was filling ITR2 as having short term capital gain from equity for current assesment yr 2010-2011. Within Schedule CG, Item-D
“Information about accrual/receipt of capital gain. How to fill this section. Assume that i have a short-term capital gain of 20000
with previous yrs loss being forward equal to 4000.
Please help on this.
Dear RaagVamdatt,
Appreciate the lucid explanation of complex financial and taxation matters.
Can we apply the cost of Rupee index calculation to FDs?
e. g.
I earned interest @5% PA on my 1-year FD of Rs. 1000/-. But after a year, the cost of that Rs. 1000/- has reduced by 6%. This is already offsetting my interest, so, I am effectively making a loss.
Can we apply such calculation to FDs and even savings bank balances?
Regards,
Rahul
a mother sale the house property in the month of jan 2010 for the amount of 8lakhs and divided into 4 parts (3 children and 1 mother), husband is expired. Now the mother has got 2lakhs for the sale of house. she doesnot have any proof of purchase of land and construction of house. the land was purchased 20-25years before at the rate of 2000/-, and the house was constructed in the year 1989-90. what will be the iincome tax calculation for the sale of this house /
Hi,
I have one house in Mumbai, which is rented out and the second house in Pune,which is under construction. I will get possesion of the second house in Apr 2010. I currently live in Pune in a rented house.
I have taken housing loans for both these houses.
I would like to understand the tax benefit that I will get towards principal and interest on both these houses
Sir
I need filled ITR4 return for the following data to file return.
Assessment year-20010-11
Capital A/c- 125000.00 Investment – 8734.93
Current A/c- 279258.79 ICICI MF – 19000.00
Sundry Creditors -11404.00 LIC – 18000.00
KISAN VIKAS-25000.00
CASH & Bank 41896.66
SUND DEBT 302531.20
TDS – 560.00
——————————————————-
Total 415722.79 415722.79
——————————————————-
HELLO SIR
I RUN A COACHING INSTITUTE(UNREGISTERED). AND TEACH A HOME TUTION AND EARNED UPTO 200000/ ANUM. PLEASE TELL ME WHICH FORM OF ITR WILL BE FILLED BY ME.
THANKYOU.