ITR-2 Form Filing Guide for Individuals and HUFs: Eligibility, Steps, and Benefits

The ITR-2 form is a crucial document for individuals and Hindu Undivided Families (HUFs) in India who earn income from sources such as salary, house property, capital gains, and other sources, but do not have business or professional income. Unlike simpler forms like ITR-1, which is designed for those with salary, pension, and a single house property, ITR-2 caters to taxpayers with more complex income situations. It is mandatory for individuals and HUFs earning income from multiple house properties, capital gains from the sale of assets like stocks or property, income from other sources like interest or winnings from lotteries, or foreign income. Additionally, individuals who are directors of a company, or those who are residents or non-residents, must file ITR-2. The form is not for those earning income from business or professional activities, as they must opt for ITR-3 instead.