Income Tax Returns (ITR) are mandatory for individuals and Hindu Undivided Family (HUF) who have income from various sources like salary, house property, capital gains, etc. Filing taxes might seem like a daunting task, especially with the various forms available for different types of income and tax scenarios. Here, we delve into how to correctly fill out the ITR-2 Excel sheet for the Assessment Year (AY) 2018-19.
Download and Open the ITR-2 Excel Utility
Begin by downloading the ITR-2 Excel utility for AY 2018-19 from the Income Tax Department’s website. Here are the steps:
- Visit the official website of the Income Tax Department.
- Under the ‘Downloads’ section, locate ‘Income Tax Forms’ for AY 2018-19.
- Download the ITR-2 utility for Excel.
- Open the downloaded file using Microsoft Excel or any compatible software.
💡 Note: Ensure you have Microsoft Excel or any compatible software that supports macros for the best experience.
Personal Information Section
After opening the utility:
- Start with filling in your Personal Information - Name, Address, PAN, Aadhar Number, etc.
- Provide your contact details accurately. This will be crucial for any future correspondence from the IT department.
Make sure all the details are correct, as any mistake can lead to discrepancies in your tax assessment.
Income from Salary/Pension
If you have income from salary or pension, enter it in the Income Details section:
- Input your Gross Total Income (GTI).
- Include salary deductions like HRA, LTA, and other allowances under the ‘Allowances exempt’ category.
- Details about provident fund, gratuity, and pension income should be specified here as well.
Income from House Property
Here, you need to report any income from properties you own:
- If the property is self-occupied, you can claim standard deduction under Section 24(b).
- For let out properties, enter the rental income along with deductions like municipal taxes, standard deduction, and interest on borrowed capital if applicable.
🔍 Note: Make sure to correctly claim house property losses if your loan interest exceeds the rental income.
Capital Gains and Losses
Capital gains from the sale of assets like property, stocks, or mutual funds need to be entered:
- Distinguish between Short-term and Long-term Capital Gains.
- Fill out the necessary details like date of purchase, sale, cost of acquisition, and the sale proceeds.
- Exemptions under Sections 54, 54EC, 54F, etc., can be claimed here.
Income from Other Sources
Income from other sources like interest on savings accounts, dividends, or any other income not covered above should be reported:
- Interest from savings accounts, deposits, and loans given.
- Dividend income which was taxable at the time.
Summary and Computation of Tax
This section auto-populates based on the inputs in the previous sections. Here:
- You’ll see the Gross Total Income.
- Deductions under Chapter VIA like 80C, 80D, 80G, etc., can be claimed.
- Your Taxable Income will be computed.
- The utility will calculate the tax liability, taking into account any applicable tax rebates like Section 87A.
Finally, the tax payable or refund due will be shown.
Verification and Filing
After filling in all the details:
- Go through the sheet meticulously for any errors or omissions.
- If everything is in order, proceed to the e-Verification option.
- Choose your preferred method of verification: Aadhaar OTP, Digital Signature Certificate (DSC), or any other method available at the time.
In conclusion, filling out the ITR-2 form requires careful attention to detail, particularly in categorizing income correctly and ensuring all deductions and exemptions are claimed. By following this step-by-step guide, taxpayers can file their returns with greater ease and accuracy, reducing the likelihood of discrepancies or the need for future rectifications. Remember, tax laws are subject to changes, so staying updated is crucial for compliance. This guide provides a broad framework for AY 2018-19, but consulting a tax advisor can be beneficial, especially if your tax scenario is complex.
What if I missed entering any income?
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If you find you’ve missed reporting income, you can file a revised return within the allowed timeframe. Remember, deliberate omission can lead to penalties.
Can I claim HRA if I’m living with my parents?
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Yes, if you are paying rent to your parents and have the necessary documentation, you can claim HRA. However, ensure your parents declare this income in their tax returns.
What should I do if my tax payment exceeds the refund amount?
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If the tax already paid exceeds what you owe, the difference will be refunded to your registered bank account after the return is processed.
