On July 11, 2025, the Income Tax Department of India (CBDT) officially released Excel-based utilities for ITR‑2 and ITR‑3 forms for the financial year 2024‑25 (Assessment Year 2025‑26). This important development comes after a 100-day delay and addresses the needs of taxpayers with capital gains, crypto income, business income, and other complex sources.
✅ What Is the Excel-Based ITR Utility?
- The utility is an offline Excel template available for download on the official Income Tax e-filing portal. It contains all sections and schedules relevant to ITR‑2 and ITR‑3 forms. After entering data, taxpayers generate a JSON file and upload it to the portal for filing.
- Filing must be verified within 30 days via Aadhaar OTP, net banking, or other authorized means to complete the return.
👤 Who Can Use ITR‑2 and ITR‑3 Utilities?
- ITR‑2: For individuals and Hindu Undivided Families (HUFs) without business or professional income, but with capital gains, rental income, crypto/foreign assets, multiple properties, or clubbed income. Suitable for taxpayers earning between ₹50 lakh and ₹1 crore.
- ITR‑3: Designed for individuals and HUFs with income from business or profession—including freelancers, consultants, proprietors, and income from foreign sources or complex business models.
🆕 Key Updates in ITR‑2 & ITR‑3 for FY 2024‑25
| Form | Major Updates |
|---|---|
| ITR‑2 | Capital gains split before/after July 23, 2024<br>- Loss on share buybacks with dividend reporting<br>- Asset/liability reporting threshold raised to ₹1 crore<br>- Mandatory TDS section code in schedule<br>- Enhanced disclosure for deductions (80C etc.) |
| ITR‑3 | All ITR‑2 updates plus: – New Section 44BBC reporting for cruise business income – More detailed disclosures for business-related deductions and assets/liabilities across ₹1 crore threshold |
These updates ensure compliance with the Finance Act 2024 and reflect broader regulatory efforts to boost transparency, especially around crypto and foreign asset holdings.
📅 Filing Deadline Extension & Why This Release Matters
- Originally, only ITR‑1 and ITR‑4 utilities were available since late May–June 2025, limiting many from filing their returns—even if eligible. The release of ITR‑2 and ITR‑3 utilities after about 100 days renewed the ability for affected taxpayers to start filing.
- The due date for filing without audit is September 15, 2025, extended from the original July 31 deadline to accommodate the delay.
🛠️ How to Use the Excel Utility
- Visit the Income Tax Department’s e‑filing portal and navigate to Downloads → ITR Forms → select ITR‑2 or ITR‑3 utility (v1.0 released July 11, 2025).
- Download and unzip the file; open the Excel template.
- Fill in all schedules including income, capital gains, deductions, TDS, foreign assets, and business income if applicable.
- Validate and generate the JSON file.
- Log into the e‑filing portal → upload JSON file → submit → verify within 30 days.
(Note: Online utility for ITR‑2/3 is still pending and expected soon.)
⚠️ Tips to Avoid Filing Errors
- Choose the correct ITR form: ITR‑2 vs ITR‑3 eligibility based on your income type. Filing under incorrect form may lead to rejection.
- Check the capital gains split based on the July 23, 2024 threshold for appropriate tax rates.
- If your total income exceeds ₹1 crore, be ready to disclose assets/liabilities under Schedule AL. If below, the requirement is waived.
✅ Final Summary
The launch of Excel utilities for ITR‑2 and ITR‑3 marks a significant milestone, enabling millions of taxpayers with complex income to file returns for FY 2024‑25 even amid a filing delay. With clear updates on new requirements and extended deadlines, taxpayers can now proceed with accurate filing ahead of the September 15, 2025 due date.
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