ITR 2 is a income tax return to be used by Individual or HUF whose income does not include income under head “Profits or Gains of Business or Profession”.
Thus, ITR 2 can be used by Individual/HUF whose income are from following sources:
- Income from Salary/Pension;
- Income from one or more House Property;
- Income from Other Sources (including income through horse racing or lotteries);
- Agricultural Income more than Rs.5,000;
- Income from Capital Gains/Loss on sale of investments/property(Long/Short Term);
In addition to the above, ITR 2 can be used by:
- An individual who is a Director in a company;
- An individual who has held any unlisted equity shares at any time during the previous year
- Residents But Not Ordinarily Residents (RNORs) and non-residents
Who cannot use ITR 2 Form?
- An individual or HUF having income under head “Profits or Gains of Business or Profession”;
- An individual eligible to file ITR 1 form
Answer: Tushant March 1, 2021 
