Income Tax Department Releases Excel Utilities for ITR-2, ITR-3 for AY 2025–26

Offline filing begins for taxpayers with capital gains, business income; online utility yet to be launched

New Delhi, July 12, 2025 – The Income Tax Department has launched Excel-based utilities for Income Tax Return (ITR) Forms ITR-2 and ITR-3 for Assessment Year (AY) 2025–26, enabling taxpayers to begin offline return filing for income earned in Financial Year 2024–25 (FY25).

This move marks a crucial update in the ongoing income tax return filing season, especially for individuals and professionals with complex income sources, such as capital gains, foreign assets, or business income.

Filing Delay and Deadline Extension

Unlike previous years where ITR utilities are typically released by the end of April, this year saw a delay in release. To accommodate this delay, the Central Board of Direct Taxes (CBDT) had extended the return filing deadline for non-audit cases to September 15, 2025 from the usual July 31.

Who Should File ITR-2 or ITR-3?

• ITR-2 is for:




• Individuals and HUFs not having income from business or profession


• Having income from capital gains, more than one house property, foreign income/assets, or crypto assets




• ITR-3 is for:




• Individuals and HUFs with business or professional income


• Includes freelancers, sole proprietors, and partners in firms

Key Changes Introduced in AY 2025–26 Forms

The newly released forms feature significant changes to improve tax compliance and reflect recent policy updates:

• Capital Gains Split: Gains must be reported separately for transactions before and after July 23, 2024, reflecting revised tax rates introduced in the Union Budget.


• Share Buyback Loss Reporting: New fields allow taxpayers to report losses from share buybacks, especially where dividend income is already disclosed.


• Higher Asset-Liability Threshold: Individuals now need to declare assets and liabilities if their total exceeds ₹1 crore, up from ₹50 lakh earlier.


• Enhanced Disclosure Requirements:




• Foreign assets and cryptocurrency holdings


• Section-wise TDS (Tax Deducted at Source) codes


• More granular details of deductions claimed under Chapter VI-A

AIS Integration and Pre-Filled Data

Tax experts note that the delay in releasing the utilities was partly due to the Income Tax Department’s efforts to enhance integration with the Annual Information Statement (AIS).

“The tax department is pushing for a higher level of automation and pre-filled data in ITR forms. Eventually, taxpayers might not be able to edit this data, reducing chances of tax evasion,” said Chetan Daga, Founder, AdvantEdge Consulting.

Filing Process (Offline Mode)

Since only offline filing is currently enabled for these forms, here’s how taxpayers can file:

1. Visit the Income Tax e-filing portal


2. Download the Excel utility for ITR-2 or ITR-3


3. Fill in the form offline with personal, income, deduction, and tax details


4. Generate a JSON file


5. Log in to the portal and upload the JSON file


6. Submit and verify the return via Aadhaar OTP, EVC, or DSC

 Online Utility Not Yet Available

Taxpayers preferring online filing may need to wait longer. According to Sonu Iyer, Partner and National Leader at EY India, the online utility—which is generally more user-friendly—is yet to be rolled out for ITR-2 and ITR-3.

“Many individual taxpayers prefer the online method for its convenience and error checks. The sooner it's available, the smoother the filing process will be,” Iyer added.

Important Reminders

• Filing Deadline for Non-Audit Cases: September 15, 2025


• Applicable Forms: ITR-2 (for capital gains, foreign income, crypto), ITR-3 (for business/professional income)


• Offline filing only as of now; online forms awaited

Final Word

The Income Tax Department’s enhanced ITR utilities for AY 2025–26 are aimed at reducing errors, improving transparency, and making the tax filing process more compliant. As integration with AIS deepens and automation increases, taxpayers can expect smoother, more accurate return filing in the years ahead.