ITR 2A: All about new Income Tax Form for AY 2016-17

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The Income Tax Department has released the new ITR Forms applicable for AY 2016-17. Apart from the normal ITR Forms i.e. ITR 1, ITR 2, ITR 3, ITR 4, ITR 4S, ITR 5, ITR 6 which are used for filing ITR’s, the govt last year also released ITR 2A which is applicable from AY 2015-16 onwards

The new ITR Form 2A can be downloaded from here:-

Need for Introduction of ITR 2A

ITR 1 is a very basic form in which only limited details are required to be furnished whereas ITR 2A is a very detailed and complicated form. Although ITR 1 (also known as Sahaj) is a very easy to submit form but only a limited category of salaried taxpayers are allowed to use this form.

As a result of the limitation on the eligibility of ITR 1, many salaried taxpayers had to fill ITR 2 which is a very complicated form. To remove this complexity, ITR 2A was been introduced by the Income Tax Dept. which is a form in between ITR 1 and ITR 2.

A major portion of the people furnishing ITR 2 can now furnish ITR 2A which is a much simpler form as compared to ITR 2. This move of introduction of ITR 2A is in line with the govt’s objective of simplifying the income tax return forms for the taxpayers. This new Form ITR 2A is applicable from AY 2015-16 onwards.

Who can use ITR Form 2A

ITR 2A can be used by an Individual or HUF whose total income for the assessment year 2016-17 includes:-

  1. Income from Salary/ Pension, or
  2. Income from House Property, or
  3. Income from Other Sources (incl. Income from Winning from Lotteries and Race Horses)

Who cannot use ITR 2A

ITR 2A cannot be used by an Individual or HUF whose total income for the assessment year 2016-17 includes:-

  1. Income from Capital Gains, or
  2. Income from Business or Profession, or
  3. Any claim of relief/deduction under Section 90, 90A or 91, or
  4. Any resident having any asset (including financial interest in any entity) located outside India or signing authority located outside India, or
  5. Any Resident having Income from any source outside India

Difference between ITR 1 and ITR 2A

Both ITR 1 and ITR 2A can be used where the income of the Individual or HUF includes income only from Salary or House Property or Other Sources.

However, the following are some of the differences between the eligibility to use ITR 1 and the eligibility to use ITR 2A

  1. ITR 1 can be used in cases where the income is only from 1 House Property whereas in case of ITR 2A there is no such restriction on the no. of houses from which the income from house property has been earned.
  2. ITR 1 cannot be used in case of Income from Winning from Lotteries or Race Horses whereas ITR 2A can be used to disclose such income from Winning from Lotteries or Race Horses.
  3. ITR 1 cannot be used if the Agricultural Income is more than Rs. 5000 whereas ITR 2A can be used if the Agricultural Income is more than Rs. 5000
  4. ITR 1 cannot be used if there a loss under head House Property whereas ITR 2A can be used in cases where there is a loss under head House Property.

Therefore ITR 2A is a more comprehensive form as compared to ITR 1. The more comprehensive the ITR Form, the more complicated it is.

Difference between ITR 2 and ITR 2A

ITR 2 is a much wider form as compared to ITR 2A. Anyone who can use ITR 2A can also use ITR 2. The only difference between ITR 2 and ITR 2A is that ITR 2A cannot be used in case of Incomes arising from Capital Gains whereas ITR 2 can be used in case of Income from Capital Gains.

Other Relevant Details regarding ITR 2A

  1. No Document like Form 16, Form 16A, Form 16B, Form 26AS etc is required to be attached with the ITR 2A. All Income Tax Return Forms are annexure less return forms.
  2. It is mandatory for the taxpayer to mention his Bank account details irrespective of whether any income tax refund is due to him or not.
  3. The Income Tax Slabs for AY 2016-17 and AY 2017-18 have been mentioned here – Income Tax Slab Rates
  4. From AY 2015-16, the taxpayers are not necessarily required to send copy of ITR-V to Income Tax CPC Office. They can simply authenticate the Income Tax Return with their Aadhar Card No. and the requirement to send the hard copy will not apply if ITR is authenticated through the Aadhar Card No.

Karan is CA by Qualification with the rare distinction of being awarded All India Rank 22. He is also the founder of this website and loves to help people with their Tax Queries.