Latest news with #ITR2
Time of India
3 days ago
- Business
- Time of India
ClearTax's new film aims to transform investor tax filing
A digital tax filing platform, Cleartax , has unveiled its new brand film 'Take Tax Refund To The 'Next' Level' designed to simplify the tax filing process for the modern trader, investor and NRI. ClearTax's brand film reveals how it's transforming tax filing for modern investors and traders. It captures the struggles of tracking diverse incomes—capital gains, F&O trading, crypto—and shows how ClearTax's AI-powered platform seamlessly syncs with more than 80 brokers, auto-calculates taxes and files returns in minutes—with 100 per cent accuracy and maximum refunds. In AY24-25, over 2 crore ITR-2 and ITR-3 returns were filed, reflecting India's economic growth and rising participation in capital markets, real estate and wealth-building. With demand for tax advisory surging, expert support has become scarce. ClearTax bridges this gap with AI-powered filing, DIY options and expert-assisted services—ensuring maximum refunds, simplifying the process and giving traders and investors confidence in managing taxes effortlessly. Archit Gupta , founder and chief executive officer of ClearTax stated, 'India's growing base of ITR 2 and ITR 3 filers reflects the rise of a new generation of investors and traders navigating increasingly complex financial portfolios. As more individuals engage in capital markets, F&O trading and crypto investments, the demand for accurate and efficient tax filing solutions is greater than ever. At ClearTax, we're committed to meeting this demand by offering a platform that simplifies the tax filing process, ensures 100% accuracy, and helps investors and traders maximise their refunds. The future of tax filing is automated, and we're proud to lead this transformation.' The brand film underscores the need for AI-automated solutions, showcasing how ClearTax bridges through speed and accuracy, allowing users to invest their efforts in wealth creation.
Time of India
01-08-2025
- Business
- Time of India
ITR filing 2025: Who can file ITR-2, who cannot file it for FY 2024-25 (AY 2025-26)?
Who is not eligible to file ITR-2 Interest Salary Bonus Commission or remuneration, by whatever name called, due to, or received by him from a partnership firm. Have the income of another person like spouse, minor child, etc., to be clubbed with their income – if income to be clubbed falls in any of the above categories. 10 documents required to file ITR 2 If you have salary income, you need Form 16 issued by your employer. If you have earned interest on fixed deposits or savings bank account and TDS has been deducted on the same, you need TDS certificates i.e., Form 16A issued by Deductors. You will need Form 26AS to verify TDS on salary as well as TDS other than salary. Form 26AS could be downloaded from the e-Filing portal. If you are living in rented premises, you need rent paid receipts for calculation of HRA (in case you have not submitted the same to your employer). If you have any capital gains transactions in shares, you will need a summary or profit or loss statement of capital gain transactions of shares or securities during a year, if any, for computation of capital gain. You will need your bank passbook, Fixed Deposit Receipts (FDRs) to calculate the amount of interest income. If you have received rent from your rented house property, then you will need your tenant, local tax payment, interest on borrowed capital details (if any) to calculate income from house property. In case you want to claim any loss incurred during the current year, then you will need the relevant documents exhibiting the loss. In case you wish to claim previous year's loss, you will need a copy of ITR-V pertaining to the previous year, disclosing the said loss. You will also need documents or proofs for claiming tax saving deductions u/s 80C, 80D, 80G, 80GG such as life and health insurance receipts, donation receipts, rent receipts, receipts for tuition fees etc., if the same were not considered in your Form 16. Taxpayers must select the appropriate Income Tax Return (ITR) form according to their financial profile and sources of income once the ITR filing season begins for Assessment Year (AY) 2025–2026. When a person or Hindu Undivided Family (HUF) receives money from sources other than their business or profession, they use the ITR-2 return form. But not all are eligible to file ITR 2. ET Wealth Online has outlined who can and cannot file an ITR-2 in this post, along with a comprehensive list of all the documents required to file ITR-2 This year ITR-2 will include the option to report capital gains incurred on transactions before/after July 23, 2024. This is because the new rules for calculating capital gains kicked in from July 23, 2024. The form also allows taxpayers to claim capital loss on share buybacks starting from October 1, Income Tax Department has also provided relief to taxpayers filing ITRs for FY 2024-25 by raising the income limit to Rs 1 crore for reporting assets and liabilities in their ITR. Earlier, taxpayers with income above Rs 50 lakh were required to report their assets and liabilities in their who fulfil any one or more of the following eligibility criteria have to file their tax returns using ITR-2:a) Individuals having any one of these residential status for income tax purposes: Resident but ordinarily resident (ROR), Resident but not ordinarily resident (RNOR) and Non-Residentb) Hindu Undivided Familyc) Total taxable income in FY 2024-25 (AY 2025-26) exceeds Rs 50 lakhd) Income from any source except profits and gains from business or profession i.e., income from the following sources is permissible for the purpose of using ITR- 2 - salaries, more than one house property, income from other sources such as interest income, dividend, capital gains (Short term and long term) such as sale of unlisted equity shares, gains from listed equity shares and equity mutual fund units exceeding Rs 1.25 lakh, house, debt mutual funds, other assets etc.e) Taxpayer being a director in a companyf) Taxpayer holding unlisted equity sharesg) Taxpayer having income from sources outside India, such as interest, dividend, rent, capital gains and/ or holding foreign assets such as foreign shares, immovable property, bank accounts, etch) Income from the sale/transfer of Virtual Digital Assets (VDAs) such as cryptocurrency, NFTs, cannot be filed by any individual or HUF, whose total income for the year includes income from profit and gains from business or profession, and also who has income in the nature of:Below are the documents required to file ITR-2, according to the Income Tax website.
Mint
20-06-2025
- Business
- Mint
Income Tax: Why are taxpayers urging department to release excel utilities of ITR-2 and ITR-3?
Barring ITR-1 and ITR-4, the income tax department has yet not released the excel utilities of other income tax forms. Although the last date to file income tax return is still three months away after it was deferred to Sept 15, taxpayers are still looking forward to the release of excel utilities of tax forms. Read here to know which income tax form you need to file while filing your income tax return ITR). Some taxpayers have expressed their discomfort on social media. One user Raisaar, for instance, wrote on X platform demanding the ITR-2 and ITR-3 to be enabled. In the same post, one Vishwa Sivan also urged the department to release the ITR-2's excel utility. Screenshot of a user's post on X Another user Sarath said that the tax department should first release form 2 before anything else such as telling taxpayers how to validate bank account. Screenshot of a user's post on X Another user Niteen Nihal Dwivedi also asked when will ITR2 and ITR2 start in reference to excel utilities. Screenshot of a user's post on X Meanwhile, it is vital to mention here that CBDT had notified income tax return filing forms (ITR-1 and ITR-4) via notification dated April 29, 2025. Those who are not aware, ITR-1 (also known as Sahaj) is meant for the individuals who are residents (other than not ordinarily resident) earning an income upto ₹ 50 lakh and having Income from Salaries, one house property, other sources, long-term capital gains under section 112A up to Rs. 1.25 lakh, and agricultural income up to Rs. 5000. ITR-4, also known as SUGAM, is essentially meant for the Individuals, HUFs and Firms (other than LLP) being a resident having total income upto ₹ fifty lakh and who have an income from business and profession computed under sections 44AD, 44ADA or 44AE, and having long-term capital gains as per provisions of section 112A upto ₹ 1.25 lakh. For all personal finance updates, visit here
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Business Standard
06-05-2025
- Business
- Business Standard
ITR-2 updates: Who benefits and who needs to be careful
The Income Tax Department announced the revised ITR 2 form for AY 2025 26 this week, reflecting a push for more detailed disclosures and tighter compliance. Here, through insights from tax experts, we explain what ordinary taxpayers need to know and how to navigate the changes. Date based capital gains reporting 'The new form separates capital gains before and after July 23, 2024,' explains Dr. Simarjeet Singh, assistant professor of Finance at Great Lakes Institute of added "post date sales can opt for a flat 12.5 per cent tax rate without indexation, versus the earlier 20 per cent with indexation." • Two sets of calculations are now required. • Precise record keeping of sale dates is crucial to avoid filing errors. Claiming share buyback losses 'Retail investors finally have clarity on buyback losses,' says Amit Bansal, partner at Singhania & Co. He added "from October 1, 2024, capital losses on share buybacks can be claimed only if corresponding dividend income is reported under Schedule OS." • Cross reference losses and dividends carefully. • Omission can lead to disallowed claims and notices. Higher asset disclosure threshold The reporting bar under Schedule AL has jumped from ~50 lakh to ~1 crore. 'This is a relief for upper middle income taxpayers,' notes Dr. Kirti Sharma, associate professor at Great Lakes. "Filers earning up to ~1 crore need not list every asset and liability in detail, freeing them from cumbersome schedules." Detailed deductions and TDS codes · TDS section reporting: Taxpayers must now state the exact section code (e.g., 192 for salary, 194I for rent) rather than just the deductor name and amount. · Chapter VI 'A breakdown: Deductions under sections like 80C must specify sub categories (PF, LIC, tuition fees), while 80G donations require the ARN. 'These moves signal a shift to verification readiness,' warns SR Patnaik, head of taxation at Cyril Amarchand Mangaldas. 'The department's data 'matching will flag inconsistencies.' Expanded foreign and digital asset reporting · Schedule FA/FSI: Overseas investments now need more granular details, including Legal Entity Identifiers for high value transactions. · Virtual digital assets: Trades remain taxed at 30 per cent under section 115BBH, with no set??'off for losses—making exact reporting non 'negotiable. Tips for smooth self filing Here are detailed, step-by-step tips by Dr. Kirti Sharma. 1. Start Well Ahead: Spread the process over days to reduce fatigue??'induced mistakes. 2. Gather your documents: Form 16/16A, AIS/Form 26AS, bank statements, capital gains statements and donation ARNs. 3. Use pre??'fill utilities: The income??'tax portal's JSON uploader now accommodates most new disclosures. 4. Compare tax regimes: Run numbers under both old and new regimes before choosing to opt out of Section 115BAC. SR Patnaik supported the broader idea of being well-prepared and vigilant during self-filing. In sum, the revamped ITR '2 strikes a balance. It lightens the load for many salaried and retired taxpayers by raising thresholds, yet demands greater diligence from those with capital gains, foreign holdings or digital assets. 'For straightforward incomes, it remains navigable,' Singh concludes, 'but complexity now truly warrants professional advice for anyone with multiple income streams.'
Time of India
05-05-2025
- Business
- Time of India
New ITR-2 form notified for income tax return filing AY 2025-26: What's new for taxpayers? Check top points
notified: The (CBDT) has notified the updated ITR-2 Form for AY 2025-26, which includes key changes such as separate reporting of , allowance of capital loss on share buybacks from October 1, 2024, and a raised threshold for reporting assets and liabilities to Rs 1 crore. Tired of too many ads? go ad free now The revised form also mandates reporting of section codes and enhanced disclosures for deductions like 80C and 10(13A). ITR-2 Form FY 2024-25: Top points Capital gains must now be reported separately for transactions before and after July 23, 2024, following changes in the Finance Act, 2024. Capital loss on share buybacks will be allowed if corresponding dividend income is disclosed as 'Income from Other Sources,' effective from October 1, 2024. The threshold for reporting assets and liabilities has been raised from Rs 50 lakh to Rs 1 crore of total income. Reporting requirements for deductions under sections like 80C and 10(13A) have been expanded. A new column has been introduced under Schedule-TDS to specify the section under which TDS was deducted (e.g., 194I, 194J). What does the new ITR-2 mean for taxpayers? Tax experts have expressed mixed opinions on the new ITR-2 form, noting both the simplifications and the added complexity. CA Ashish Niraj, Partner at A S N & Company Chartered Accountants, welcomed the relief for non-business taxpayers from burdensome disclosure requirements: 'If we see till last year, Schedule AL, which was for assets and liabilities, was applicable if total income exceeded Rs 50 lakhs. But now, it's applicable if total income exceeds Rs 1 crore. Preparing details of assets and liabilities as of March 31st every year is a tedious task for non-business entities for which 2 is applicable. By increasing the limit to Rs 1 crore, taxpayers in the bracket of Rs 50 lakh to Rs 1 crore will get relief from preparing the details,' he told TOI. Niraj added that the requirement aims to resolve some of the earlier inefficiencies: 'Earlier, while entering TDS details in ITR 2, it was not required to mention the section under which TDS was deducted, such as Section 194I, 194J, etc. Now, a separate column is provided for the section. Sometimes, when TDS returns were not filed in time by the deductor or were filed with incorrect particulars, taxpayers used to enter TDS details such as TAN, Name, and amount manually. As there was no 'section' column, the tax department faced issues in processing and cross-verifying. Now, this new column will bring clarity in reporting.' The changes to capital gains reporting also reflect recent shifts in tax policy: 'Before July 23, 2024, the Long-Term Capital Gain rate was 20% with indexation. Tired of too many ads? go ad free now After July 23, 2024, a new rate of 12.5% without indexation was introduced. In the newly notified ITR 2, separate columns are added to report transactions before and after July 23, 2024, separately.' Niraj also pointed out the government's tightening of compliance around disability-related deductions: 'In recent years, the department has caught many fake claims for claiming refund or reducing tax liability under Section 80U, 80DD etc for disability. Now, disability certificate details etc. are required.' CA Gopal Bohra, Partner – Direct Tax at N. A. Shah Associates LLP, explained the updates regarding capital gains taxation: 'Considering the two tax rates applicable on capital gains for the FY 2024-25 (i.e. gains accrued up to July 22, 2024, and gains accrued on or after July 23, 2024), CBDT has introduced a split in Schedule Capital Gains to report separately the capital gains where transfer was before July 23, 2024, and where transfer was on or after July 23, 2024. Similarly, separate computation mechanisms are provided in ITR in relation to capital gains from transfer of land or building by resident individuals where such land or building was acquired prior to July 23, 2024. These changes in ITR will help the individual taxpayer to compute the correct tax liability on capital gains while filing the ITR.' Bohra also explained the impact of the Finance Act (No. 2) of 2024, which will affect share buybacks: 'As amended by Finance Act (No. 2) 2024 with effect from October 1, 2024, the buyback receipt will be taxed in the hands of the recipient as dividend under the head 'Income from Other Sources,' and the cost of such shares will be allowed as capital loss under the head 'Capital Gains.' Accordingly, in ITR-2, separate line items are added under Schedule 'Capital Gains' and Schedule 'OS' to disclose capital loss on buyback of shares on or after October 1, 2024, and receipt from such buyback taxable as dividend under section 2(22)(f) of the Act,' he told TOI. Sonam Chandwani, Managing Partner at S Legal & Associates, termed the new form a mixed experience for taxpayers. 'The ITR-2 form for AY 2025-26, feels like a mixed bag compared to last year's version. The new split in Schedule Capital Gains for pre- and post-July 23, 2024, gains is a smart move to align with the Finance Act's tax tweaks, but it's a headache for taxpayers juggling multiple transactions. Allowing capital losses from share buybacks after October 1, 2024, is a win for investors, though tying it to dividend income reporting feels like a bureaucratic trap waiting to trip people up. Bumping the asset and liability reporting threshold to Rs 1 crore is a relief for middle-income filers, sparing them tedious paperwork, but the beefed-up deduction reporting for 80C and 10(13A), plus mandatory TDS section codes, screams overreach. Honestly, while the form tries to balance clarity and compliance, it's tilting toward complexity, likely forcing salaried folks and HNIs to lean harder on CAs to avoid errors.'
