The ITR-2 form is typically the appropriate choice for individuals who have income from multiple sources. It is designed to accommodate various types of income, including salary, house property, capital gains, business or profession, and more.
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Income from Salary
If you are earning a salary from employment, you must report it in the ITR-2 form. This includes income from your regular job, bonuses, allowances, and any other remuneration received.
House Property Income
If you own more than one house property or receive rental income, you should use the ITR-2 form. It allows you to report income or losses from multiple properties and claim deductions related to home loan interest or property taxes.
Capital Gains
The ITR-2 form is appropriate for reporting profits from the sale of capital assets, including stocks, mutual funds, real estate, and other assets. It enables you to provide details of the transactions and calculate capital gains tax accordingly.
Business or Profession
If you are engaged in any business or profession, whether as a sole proprietor or partner, the ITR-2 form is the appropriate choice. It allows you to report income, expenses, and deductions related to your business or professional activities.
Foreign Assets or Income
If you have foreign assets or earn income from outside India, the ITR-2 form is mandatory. This includes income from foreign employment, foreign bank accounts, foreign investments, or any other overseas financial activities.
Other Sources
If you have income from sources such as interest, dividends, lottery winnings, or any other miscellaneous income, you can report it in the ITR-2 form.
With income from multiple sources, the ITR-2 form is the appropriate choice for filing income tax returns. Remember that tax laws and forms may undergo changes over time. Therefore, it is recommended to stay updated with the latest guidelines and consult a tax professional or refer to the official website of the Income Tax Department of India for the most current information regarding ITR forms and filing requirements.
Look up more articles here for a smooth first time tax-filing process. All the best!
