Filing an Income Tax Return (ITR) 2 for salaried individuals involves a few steps. Individuals and Hindu Undivided Families (HUFs) who have income other than from a business or profession file ITR 2. This includes income from salary/pension, multiple house properties, capital gains, and other sources, but does not include income from business or profession.

Here are the steps to file ITR 2 for salaried individuals:

1. Collect Necessary Documents

• Form 16: Issued by your employer, this form contains details of your salary and the tax deducted at source (TDS).
• Form 26AS: This form is a consolidated tax statement that contains details of all taxes deducted and deposited with the government.
• Bank Statements: For interest income.
• Investment Proofs: Proof of investments under Section 80C, 80D, etc., for claiming deductions.
• Capital Gains Statements: If you get income from capital gains, you will require statements from your broker or mutual fund.

2. Download the ITR 2 Form

• Go to the Income Tax Department's e-filing website, incometaxindiaefiling.gov.in.
• Download the latest version of the ITR 2 form (Excel or Java utility).

3. Fill in Personal Information

• Provide your name, date of birth, residence, PAN, and other personal information.

4. Provide Salary Details

• Enter details from your Form 16, including gross salary, exempt allowances, and deductions.

5. Declare Income from House Property

• If you have rental income or own more than one house, enter each property's details.

6. Include Capital Gains

• Provide information on capital gains from selling property, shares, mutual funds, etc.

7. Include Other Income

• Enter your revenue sources, including interest and dividends.

8. Claim Deductions

• Enter details of deductions under Section 80C (e.g., LIC, PPF), 80D (medical insurance), etc.

9. Calculate Tax Liability

• The utility will automatically calculate your total income and tax liability based on the information provided.

10. Pay Additional Tax (if any)

• If there is any additional tax payable, pay it online through the e-filing portal.

11. Generate and Submit XML

• Generate the XML file after verifying all the details.
• Upload the XML file on the e-filing portal.

12. E-Verification

• After submitting the return, e-verify it using Aadhaar OTP, net banking, or sending a signed ITR-V to the CPC, Bengaluru.

Tips for Pensioners

• Standard Deduction: Claim the usual deduction of ? 50,000 for your pension income.
• Form 10-IA: If you are a super senior citizen (above 80 years), you may need to fill in additional details if you are claiming certain deductions.
• Medical Insurance: Remember to claim Section 80D deductions for paid medical insurance premiums.

Benefits of Filing ITR 2

1. Compliance: Filing ITR 2 ensures that you are compliant with tax laws, thereby avoiding penalties and legal issues.
2. Loan Approvals: Acknowledgment of ITR serves as proof of income and is often required when applying for loans or credit cards.
3. Claiming Refunds: If excess tax has been deducted at source, filing ITR is essential to claim a refund from the Income Tax Department.
4. Carry Forward Losses:  Filing an ITR permits taxpayers to carry forward capital losses to subsequent years, which can be offset against future gains.
5. Visa Processing: ITR receipts are often required for visa applications as proof of financial stability.

Filing Process for ITR-2

Filing ITR-2 can be done online through the Income Tax Department’s e-filing portal. The process involves filling in the required details, uploading necessary documents, and verifying the return. The return can be verified electronically using methods like Aadhaar OTP, Net banking, or by sending a signed physical copy to the Centralized Processing Centre (CPC) in Bangalore.

Importance of Accurate Reporting

It is essential to accurately report all components of your salary income in ITR-2 to avoid any discrepancies or notices from the Income Tax Department. Misreporting can lead to penalties, interest, or scrutiny of your return. Therefore, it’s advisable to carefully check your Form 16 and cross-verify the information with your salary slips and other relevant documents.