ITR-2/Key Insertions in the Income Tax Return Form “Now Available for E-Filing at Income Tax Portal”

Recently, the government (CBDT) notified the Income Tax Return Forms (ITR) for the financial year 2019-20 (A/Y 2020-21).

Today i.e. on the 26th of June, 2020, the department has made the Income Tax Return Preparation Software (also known as the income tax return utility) for ITR-2 available on its e-Filing portal for filing the income tax returns. (https://www.incometaxindiaefiling.gov.in/downloads/incomeTaxReturnUtilities).

As of now the tax return preparation utility is available only for Microsoft Excel (though not working perfectly for now) and not for JAVA (expected soon).

Earlier, by the 5th of June, 2020, the department made the income tax return preparation software/utility for ITR-1 and ITR-4 available for e-filing on its portal.

ITR-1 and ITR-4 available for e-filing

Starting today, individuals and HUFs will be able to file their ITR-2 pertaining to financial year 2019-20.

HUFs will be able to file their ITR-2

We have thoroughly analyzed ITR-2 and in this article we are highlighting the three key insertions made in the ITR-2 form that is now made available for e-Filing.

#KEY ADDITION NO. 1:

Disclosure with regard to Cash Deposits, Expenditure on Foreign Travel and Expenditure on Consumption of Electricity:

The Final Budget, 2019 added a seventh proviso in section 139(1) w.e.f. 1st April, 2020 which states as under:

A person who is not required to furnish a return under 139(1) and who during the previous year (i.e. F/Y 2019-20) —

(i) has deposited an amount or aggregate of the amounts exceeding Rs. 1 crores in one or more current accounts maintained with a banking company or a co-operative bank; or

(ii) has incurred expenditure of an amount or aggregate of the amounts exceeding Rs. 2 lakh for himself or any other person for travel to a foreign country; or

(iii) has incurred expenditure of an amount or aggregate of the amounts exceeding Rs. 1 lakh towards consumption of electricity; or

(iv) fulfils such other conditions as may be prescribed,

shall furnish a return of his income on or before the due date in such form and verified in such manner and setting forth such other particulars, as may be prescribed.

To give effect to the above, a new section in ITR-2 has been added as displayed below:

new section in ITR-2

If you are required to file your ITR-2 because of the seventh proviso mentioned above, then you will have to select YES and fill the amount in the relevant section applicable to you.

IMP. NOTE: If you are required to file your ITR under Section 139(1) (i.e. except under the seventh proviso) then no information is required in this section. You can simply select NO and move ahead.

#KEY ADDITION NO. 2:

SCHEDULE DI

Keeping in view the challenges faced by taxpayers in meeting the compliance requirements under lockdown conditions, the Finance Minister had announced several relief measures relating to statutory and regulatory compliance matters across all the sectors in view of COVID-19 outbreak on 24.03.2020 vide a press release. To give effect to the announcements so made, the government brought an Ordinance (named “The Taxation And Other Laws (Relaxation Of Certain Provisions) Ordinance, 2020”) on 31.03.2020 which provided for extension of various time limits under the Taxation and other Acts.

In order to provide further relief to the taxpayers for making various compliances, the Government has issued a Notification on 24th June, 2020 which has further extended various time limits under the Taxation and other laws.

  • The Notification has further made an EXTENSION in the date for making investment/payment/deposit for claiming deduction under Chapter VIA-B: The date for making investment/payment/deposit for claiming deduction under Chapter VIA-B which includes Section 80C (LIC, PPF, NSC, etc.), 80D (Mediclaim, etc.), 80G (Donations), has been further extended to 31st July, 2020 (from the earlier extended date 30th June, 2020).

Therefore, the investment/payment/deposit made up to 31st July, 2020 shall be eligible for claiming deduction under Chapter VIA-B.

  • The Notification has further made an EXTENSION in the date for making investment/construction/purchase for claiming roll over benefit/deduction in respect of Capital Gains under section 54 to 54GB: The date for making investment/construction/purchase for claiming roll over benefit/deduction in respect of Capital Gains under sections 54 to 54GB of the Income Tax Act, 1961 has also been further extended to 30th September, 2020 (from the earlier extended date 30th June, 2020).

Therefore, the investment/ construction/ purchase made up to 30th September, 2020 shall be eligible for claiming deduction from Capital Gains.

The new return form has a special schedule named “DI” where the taxpayers, in order to avail deductions for the financial year 2019-20, have to report the investments/payments/deposits/construction/purchase so made from the period starting 1st April, 2020 to 30th September, 2020 (as applicable).

From the total eligible amount of investments/payments/deposits/construction/purchase so made for the financial year 2019-20, the taxpayers shall have to separately disclose investments/deposits/payments/construction/purchase made during the extended period (01.04.20 to 30.09.20), as applicable, in order to claim the deduction for the same for this financial year under chapter VIA-B [i.e. under section 80C (PPF, Life insurance premium, 5 year FD, NSC, etc.); 80D (medical insurance premia, medical expenses, preventive health check-up, etc.); 80G (Donations), etc.] and under section 54 to 54GB.

The snapshot of the schedule is displayed below:

schedule is displayed below

IMP. NOTE: If you have made the relevant investments/ deposits/ payments/ construction/ purchase on or before 31st March, 2020 for claiming deductions under chapter VIA-B or under section 54 to 54GB (as applicable) for the financial year 2019-20 and you have also made deposits/investments/payments/construction/purchase during the period starting from 1st April, 2020 to 30th September, 2020 (as applicable) for the financial year 2020-21, then no disclosure is required to be made in this schedule.

#KEY ADDITION NO. 3:

SCHEDULE 80D

A new schedule 80D has been added in the ITR-2 this time for claiming deduction under Section 80D of the Income Tax Act i.e. for medical insurance premium, expenditure, preventive health check-up etc.

The bifurcated amounts under each sub head shall required to be reported this time.

reported this time

CONCLUSION:

All other sections in the ITR-2 are more or less the same as were before.

The extended last date for filing the ITR-2 for the financial year 2019-20 is 30th November, 2020.

[For ITR-1, 2 and 4]

1. We advise all the taxpayers to file their ITRs only after 31st July, 2020 (being the extended last date for making investments/payments/deposits in order to claim deductions under chapter VIA-B i.e. 80C, 80D, 80G, etc.) so that they do not miss out on claiming any deduction in a hurry to file for their ITRs.

[For ITR-2]

2. We advise all the taxpayers to file their ITRs only after 30th September, 2020 (being the extended last date for making investments/construction/purchase in order to claim roll over benefit/deductions under section 54 to 54GB) so that they do not miss out on claiming any benefit/deduction in a hurry to file for their ITRs.

File your income tax returns in time to avoid last minute rush, late fees, interest, penalties and other statutory fines.

For any tax related queries or any help in e-filing your income tax returns, kindly drop in the comments below or e-mail on connect@ujlegal.com

Author Bio

Qualification: CA in Practice
Company: U J & CO.
Location: Delhi NCR, New Delhi, IN
Member Since: 29 Apr 2020 | Total Posts: 13
A first class commerce graduate from Delhi University, a Company Secretary and a practicing Chartered Accountant. Also a Co-Founder at UJ LEGAL LLP and Content Writer at TaxGuru. View Full Profile

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58 Comments

  1. Rakesh says:

    There is a bug in ITR 2 of AY 20-21 utility. These amount mentioned in 80 CCD(2) – Employer’s contribution to NPS is not exempted for tax calculation.

  2. amit.gore.mumbai says:

    In ITR2 for FY 2019-20, Details of Property is Mandatory in Schedule HP. I do not own any property & live with my uncle. So I cannot have any income from house property. I do not pay rent either. I am filing ITR2 because I have Interest incomes & Long Term Capital Loss from Equity. Please advise how do I resolve this issue, because ITR2 generates this message to fill up property & owner details, when I press the Calculate Tax Button in the Excel Utility.

  3. Veeraswamy says:

    Hi,

    I have some short term losses during FY 19-20, which i have filled in CG tab in ITR-2. All of those shares were acquired & sold during FY 19-20. So what should i fill in the column for FMV of share as on 31.01.2018?

    Can i fill “0”, because shares were acquired after 31.03.2019. Please reply.

  4. Srinivasan says:

    ITR2 AY20-21 in Schedule 112A mandates ISIN Code, i have Foreign Stocks which i need to declare, when i provide the ISIN code of this foreign stock, ITR2 excel is not allowing to proceed. I get a message “Pleas enter the valid ISIN code”, please advice how to overcome this. Thanks

  5. Vipulkumar Panchal says:

    Thanks Tax Guru for publishing a very informative and useful article on ITR.I AM
    ALWAYS GETTING INVALID XML WHILE UPLOADING MY ITR 2 USING EXCEL LATEST UTILITY OF 16 JULY 2020 DOWNLOADED FROM E- FILING PORTAL . WHEN I AM GOING TO UPLOAD THE XML FILE ERROR IS PLEASE USE LETEST UTILITY FOR GENERATE VALID XML FILE
    Please help.

  6. S R Jalpota says:

    Very valuable information & guidance given in your article. I had prepared my ITR2( in Excel Utility software of Income tax Deptt) in first week of August, 20 for AY 2021 but not filed. Today, I was planning to file it but I noticed that on 12.08.20, an updated version of ITR2 Utility in excel has been issued. I can not find out if there are any changes compared to one issued in July, 20. Should I file in old version or refill in the updated format for filing my return as an Resident Individual. Pls. advise. Thanks

  7. CHANDER PRAKASH says:

    Sir,
    How to show TDS deposited, Tax credit certificate received, by my bank on interest in itr2, gross income exceeding 50 lac.

    Thanks.

  8. Narendra says:

    For schedule 112A, what should be filed in FMV for stocks brought after 31st Jan 2018…Cannot leave it blank as it is mandatory

  9. KIRAN VERMA says:

    I am unable to fill itr-2 for ay 2020-21 in excel. Tax is not being calculated. in part b-II-III at serial no.13 Income which is included in 12 and chargeable to tax at special rates (total of column (i) of schedule SI) auto comes #NAME? and in SPI-SI auto comes #NAME? at sr no. 2,3,4,5 and 40. Please guide.

    1. CA (CS) Ujjwal Jindal says:

      Hi Kiran Verma…

      Thanks for reading our article and reaching out to us. We can help you file your tax return!
      You can e-mail us at connect@ujlegal.com for further information. You can also WhatsApp us on +91 9555 243743 (text only) for related assistance.

  10. Shrawan kumar says:

    in schedule 112A, for some equity funds the ISIN is not accepted by utility. For example for the fund “ICICIPRU blue chip fund growth” . What to do ?

    1. KNVS MURTHY says:

      I entered INF109K01BL4 for ISIN in Schedule 112A and it auto-generated ‘ICICI Pru Blue Chip Fund’ and I I filed my tax return.

    2. CA (CS) Ujjwal Jindal says:

      Hi Shrawan Kumar. Thanks for reading our article and reaching out to us.
      I am sure Mr. Murthy’s reply has solved your query.

      You can e-mail us at connect@ujlegal.com for any further assistance.
      You can also WhatsApp us on +91 9555 243743 (text only).

  11. KNVS MURTHY says:

    For equity funds purchased after 31 Jan 2018, we can not fill column 10 schedule 112A. But validation insists on entering numeric value. If we enter, it can topple the capital gains.

    1. CA (CS) Ujjwal Jindal says:

      Hi Mr. Murthy. Thanks for reading our article. Also glad to know that you are helping others in solving their queries.
      I am sure Mr. Arun’s has resolved your query.

      You can e-mail us at connect@ujlegal.com for any further assistance.
      You can also WhatsApp us on +91 9555 243743 (text only).

  12. G.M. Rupala says:

    Sir,
    Thanks for nice information
    my problem with itr 2 excel ay 2020-21,not showing
    proper calculation of 80tta,sh 112a table for LTCG
    COMPULSARY ask for 31-01-2018 fair value for share purchase after that also.without that sheet not validated and qurey remains while calculate tax
    please advise to solve problem.
    thanks

    1. CA (CS) Ujjwal Jindal says:

      Hi G.M. Rupala…

      Thanks for reading our article and reaching out to us. We can help you file your tax return!
      You can e-mail us at connect@ujlegal.com for further information. You can also WhatsApp us on +91 9555 243743 (text only) for related assistance.

  13. B B SINGH says:

    Thanks Tax Guru for publishing a very informative and useful article on ITR.I AM
    ALWAYS GETTING INVALID XML WHILE UPLOADING MY ITR 2 USING EXCEL LATEST UTILITY OF 16 JULY 2020 DOWNLOADED FROM E- FILING PORTAL FROM MY PC USING WINDOWS TO & OFFICE 365.I HAVE ALSO ENABLED NET FRAMEWORK 3.5 IN WINDOWS 10. Kindly help.

    1. CA (CS) Ujjwal Jindal says:

      Hi. Thanks for reading our article and appreciating.
      I have replied to your e-mail. Kindly check your mail box.
      Many thanks.

  14. venkataratnam jupudy says:

    My profound sincere and heartfelt thanks for the service rendered by TAX GURU and your guidance to tax payers on this needy times .
    My query relates to PTI schedule of ITR -2 in the light of the amendments in Budget 2019 on PASS THROUGH LOSSES by AIF cat 1 and 2..
    The losses accumulated at the fund level other than business losses ,shall be deemed to be losses of investors ( unit holders of the fund) , as on 31 st March 2019 and be be carried forward by the investors and st off as per ITA.
    In the PTI schedule ,there is no provision to report
    LOSSES of earlier years and current year losses are only to be reported.
    In the CFL schedule is it permissible to report the carry forward losses of earlier years with out reporting them in the ITRs of respective years .
    Please advise how to report the accumulated losses and set off with other Capital gain income
    for FY 2019-20 in ITR -2.
    The fund house suggested to file revised ITR for previous years which I feel incorrect as the amendment of PASS THROUGH LOSSES was approved for FY 2019-20 and can not file revised ITR for Fy 2017-18 now as the capital loss now passed on by FUND is for that year..
    PLEASE help ,sir.
    I am aged 75 years and a senior citizen ,a retired senior executive of PSU .

  15. MAHADEVA R REDDY says:

    It seems there are a number of bugs in e-filling return ITR2. After conversion to HTML and during uploading, these are evident. First one is “Assessment year” which is shown as 2019 instead of 2020 in HTML File. Next one is “Residential Status-NRI”. These are few examples. Is IT Department attending to fix these bugs?
    When can the e-filing of ITR2 stabilize so that individuals can file return without difficulty.

    1. CA (CS) Ujjwal Jindal says:

      Yes there are some bugs. Moreover, the JAVA version has not yet been released.
      I am reading HTML as XML in your comment. There is issues not doubt for now!
      Use Excel utility Office 360 edition. Tried doing one from there, was able to file the return.
      However, it is advised to wait for some more time till the issues are fixed/rectified by the department.

  16. ganapathy says:

    eventhough xml generated using the latest utility for ay 2020-2021 it is displayilng message that, invalid xml.please generate XML again using the latest utility. i could not upload ITR 2. please help.

    1. CA (CS) Ujjwal Jindal says:

      The Excel utility for the same has been released but it has various errors for now. We tried uploading the same but were unsuccessful.

      We then filled the form using Excel in Office 365 and tried to upload and were successful.

      Its better to wait to some more time.
      Even the Java utility has not been uploaded by the department as on date.

      For further queries contact us on connect@ujlegal.com or connect@ujandco.com

      1. Harish chander says:

        Yr article in Tax Guru is very informative and useful.I am a super senior citizen and extend my best wishes for your future growth and success.Kind regards

  17. R V Iyer says:

    Can you kindly let me know which ITR form is to be used by an individual having income from salary/pension and income from one house property which is jointly owned by him and his wife.

  18. Rangarajan says:

    I have short term capital gain arising out of Debt Mutual Fund & Income from other sources (interest, private tution fee). Which ITR I should file ITR 1 or 2?

    1. CA (CS) Ujjwal Jindal says:

      Thanks for reading my article.
      If you have income from capital gains, “you cannot file ITR-1”.

      You will have to file ITR-2 for the FY.

      E-mail us on connect@ujlegal.com or call/whatsapp on +91 9555243743 for any assistance in filing your ITR.

  19. Devendra kumar yamdagni says:

    Thank youvery much ,Sir for your quick guidance.
    Iwill contact you in september for filing ITR2 for me and my wife.
    Regards

      1. Satish says:

        Hello Sir,

        Thanks for the article.

        What should we fill in place of FMV in Schedule 112A if the shares were bought after 1/2/2018 and sold 1 year thereafter? Please clarify.

        Warm Regards,
        Satish

    1. CA (CS) Ujjwal Jindal says:

      Moreover, I would like to suggest that you can file your ITR-2 even now if everything is ready. These days a very few ITRs are getting filed. Your refunds (if any) would processed early. For few senior citizen we have recently filed returns, and within 2 days their refunds were processed.

      I would suggest to file early and get your refunds fast! No need to wait till September or extended period if you are ready with everything.

    1. CA (CS) Ujjwal Jindal says:

      ITR-2 never has an option “to prepare and submit online”. It is only for ITR-1 and 4.
      It can only be filed through Income Tax Utility or various Softwares.
      For any further help you can write us to connect@ujlegal.com

  20. venkat says:

    I have sold a few equities through Icicidirect and IIFL as long term sale and I have to pay tax on LTCG. These two agencies have given me the consolidated full income due to the sale and also details. I am wondering whether I have to give detailed data for EACH share in the sheet 112A which is cumbersome and complicated or can I just give the consolidated data for both organizations in line B(4) in sheet CG. In the detailed information in sheet 112A I do not have ISIN code for each share as information given by the two organizations. I would like to have some clarifications.

    1. CA (CS) Ujjwal Jindal says:

      The detailed information related to sale of equity shares (LT) is required starting FY 2019-20. Last year, this was made optional.
      We can assist you in preparing your ITR and also help you in getting all the missing details.
      You can email us at connect@ujlegal.com for further clarity.

  21. b r bhat says:

    I have managed required savings for FY 2019-20 within 31-03-2020. Therefore is it mandatory to claim savings done from 01-04-2020 to 31-07-2020 under VI A, in this AY 2020-21 itself? OR can we claim that in next AY 2021-22 like previous years?

    1. CA (CS) Ujjwal Jindal says:

      Thanks for reading the article!
      Glad to know that you made the necessary investment/deposits/payments in time for availing deduction for FY 2019-2020.

      Due to COVID-19 pandemic, the government extended the due date for making the necessary investment/deposits/payments to 31.07.2020 for FY 2019-2020.

      However, you are at your liberty to claim the deduction for the investment/deposits/payments made from 01.04.2020 to 31.07.2020 in FY 2019-20 (AY 2020-21) or FY 2020-21 (AY 2021-22).

      Thus, you can file your ITR for FY 2019-20 without any disclosure for investment/deposits/payments made from 01.04.20 to 31.07.20.
      You can claim the deduction for the same in the next FY i.e. 2020-21.

      I hope this helps.

  22. ASHOK KUMAR B says:

    This new clause “Expenditure of Rupees 200000” is only for air travel or carrying USD 10000 in Forex card to meet our expenses over a period of planned 180 days stay in USA plus now extended stay due to COVID 19

    1. CA (CS) Ujjwal Jindal says:

      Hi Mr. Ashok Kumar. Thanks for reading the article!
      The expenditure on foreign travel shall include expenditure made on the travel in “totality”.
      I hope this helps.

  23. Devendra kumar yamdagni says:

    Sir,i m sr ctzn aged 75 yrs,an heart patient.i m afraid to go to my CA this yr due to CORONA epidemic.
    Can i file rturn ITR 2 from my home.
    If yes how to do it. I hv all documents required i.e tax certificates,proof of deposirion in PPF,and i can down load 27AS i hv form 16A.
    Pl guide.thanks,regards

    1. CA (CS) Ujjwal Jindal says:

      Hi sir. Thanks for reading our article.
      This time is tough for everyone. I trust you are doing well and taking good care of yourself.

      ITR-2 form is neither SARAL not SUGAM. It cannot be prepared online like ITR-1 and 4.

      You will have to get the same prepared on IT Utility/Software.
      I suggest that you get the same prepared from a local CA/consultant.

      We can also help you in getting the same prepared. You can e-mail us at connect@ujlegal.com or Call/Whatsapp on +91 9555243743 to get assistance.

    2. R PANDEY says:

      i have gone thru your article and comments. same are quite informative. I have also to file ITR 2 , ANF TRYING TO FILL UP 112A SECTION BY CONVERING THE BROKER DETAILS IN EXECELS . In case i shall find difficulty i shall phone you .regrds
      R PANDEY

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