The Income Tax Department has released the Excel utilities for ITR-2 and ITR-3 for Assessment Year 2025-26. Thus enabling taxpayers with capital gains, crypto earnings, foreign assets along with business income to begin with the filing of their income tax returns for Financial Year 2024-24.
This announcement was made today i.e., on July 11, 2025, through the tax departments official X (formerly Twitter) handle. These offline excel based tools are now open for downloads on the Income Tax e-filing portal. It is crucial to keep in mind that the due date for filing these returns is September 15, 2025.
Till now only ITR-1 and ITR-4 were available. This resulted in limiting filings to salaried individuals and small businesses under presumptive taxation. With the release of ITR-2 and ITR-3 utilities, a more enhanced and broader taxpayer base can begin with the process of compliance.
What’s new in ITR-2 and ITR-3?
The Income Tax Department has introduced several important changes and updates to reflect changes from the Finance Act, 2024:
- Capital gains bifurcation for asset transfers made before or after July 23, 2024.
- Loss on share buyback permitted if related dividends are disclosed as “income from other sources.”
- Asset & liability reporting threshold raised to ₹1 crore (up from ₹50 lakh).
- TDS deduction section code now mandatory in Schedule-TDS.
- ITR-3 also includes a new reference to Section 44BBC (cruise business).
These changes and developments focus on streamlining reporting, improve transparency and reduce filing errors. Especially for high income individuals earning between ₹50 lakhs and ₹1 crore.
Who should use ITR-2 and ITR-3?
- ITR-2 is for individuals and HUFs without business income, but with capital gains, clubbed income or foreign assets.
- ITR-3 on the other hand is for those with income from business or profession, including freelancers, consultants and sole proprietors.
Once the Excel utility is filled and validated, taxpayers must generate a JSON file and upload it to the portal. Filing must be verified within 30 days of submission.
The online filing mode is expected to be launched soon. The online filing mode of submission is expected to be launched soon. For more information on the do refer to the website of the income tax department.
Disclaimer: This article is for informational purposes only and does not constitute legal or tax advice. Taxpayers are advised to consult a qualified tax professional or refer to the official website of the Income Tax Department for accurate and up-to-date guidance before filing their returns.
