New Income Tax Return Form ITR 2A

Income Tax Department has recently notified number of changes in Income Tax Return filing. One of the major change is the introduction of new income tax return form for assessment year 2015-16 - ITR 2A which basically is a simplified version of ITR 2. It provides an ease to the taxpayer who do not have any income from capital gains or do not own any foreign assets.

Who can use new income tax Form ITR 2A?

Income tax return form, ITR 2A, can be used by an assessee, being an Individual or a HUF, whose total income for the respective financial year includes:

  • Income from salary; or
  • Income from house property (any number of properties); or
  • Income from other sources including winnings from lottery or horse racing; or
  • Clubbed income of minor child or spouse provided such income falls in the above categories.

Who cannot use income tax Form ITR 2A?

If the taxpayer has income from any of the following sources, they will not be able to use the ITR form ITR 2A:

  • Income from capital gains
  • Income from business or profession
  • Any claim of relief/deduction under section 90,90A or 91
  • Income from any source outside India
  • Any assets including financial interest or a signing authority outside India.

Need for ITR 2A

Until the introduction of ITR 2A, taxpayers who were unable to file ITR 1 due to its rigid eligibility criteria had to file ITR 2 which was much more complicated and lengthy than ITR-1. This led to an urge of introduction of a new form which could substitute the requirement of filing ITR 2 with a much simplified Itr form in case of such assessees. Thus to remove the limitations of ITR-1 and complexities of ITR 2, ITR 2A was introduced for such taxpayers who do not have capital gains or foreign assets.

The best part is that compared to 14 pages ITR 2 the new ITR form ITR 2A requires taxpayers to fill details in 3 pages only, the rest of the details they can be filled in schedules.

Key Differences between ITR-1 and ITR 2A

  • ITR-1 can be used in cases where there is income from only one house property whereas ITR 2A does not face any such restrictions.
  • ITR-1 cannot be used by taxpayers having income from other sources like winning from lotteries or race horses whereas ITR 2A can be used by the taxpayers for the same.
  • ITR-1 can be filed only when agriculture income is up to Rs. 5000 whereas ITR 2A can be used in cases even where agricultural income is above Rs. 5000.
  • ITR–1 cannot be used where loss from a property is being carried forward whereas ITR 2A can be easily used in such case.

Key Differences between ITR-2 and ITR 2A

  • ITR-2 is a 14 page return whereas ITR 2A consists of only 3 pages.
  • ITR-2 can be used by the taxpayers having income from Capital gains whereas ITR 2A cannot be used by the taxpayers having income from capital gains.
  • ITR-2 can be used by the taxpayers who owns foreign assets whereas ITR 2A do not require any such reporting.

Download new ITR form ITR 2A from Income Tax Department website through following link.

Filing of Income Tax Returns in India May 1, 2015

ITR Form 4S - Sugam Febuary 6, 2016



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