IT Department Launches Excel Utilities for ITR-2 and ITR-3 Filers

The Income Tax Department has introduced the Excel-based facilities for filing ITR-2 and ITR-3 forms, further enhancing the choices available to taxpayers having capital gains, income from cryptocurrency, and other intricate sources of income to file their returns for Assessment Year (AY) 2025–26.

Previously, the department had only offered online and Excel utilities for ITR-1 and ITR-4 that apply to taxpayers with less complex income profiles under certain conditions. The new release now allows a larger category of taxpayers to start filing.

In a recent social media post on platform X, the Income Tax Department stated: Notice Taxpayers! Excel Utilities of ITR-2 and ITR-3 for AY 2025-26 are now live and ready for filing."

For accessing the same, users can proceed to the "Download" area on the department's official e-filing website. Once the taxpayer has chosen the required form, he/she can download a ZIP file containing the corresponding Excel utility.

According to the instructions of the IT department, ITR-2 is for individuals and HUFs who are not eligible to file ITR-1 (Sahaj). It is applicable for those who don't have income from business or profession or income in the nature of salary, commission, or other allowance from a firm in which he is a partner. It also includes taxpayers who must club income of spouses, minor children, or others, if such income belongs to the types applicable for ITR-2.

In contrast, ITR-3 is for individuals and HUFs having income from proprietary business or profession and require a form that is specifically designed for more complex financial reporting.

Also, the department previously announced that the filing due date for ITR for FY 2024–25 (AY 2025–26) has been extended. Rather than the initial deadline of July 31, taxpayers are now required to submit their returns by September 15, 2025.

The extension was made official by the Central Board of Direct Taxes (CBDT) on May 27. The board referred to the wide-ranging changes made in the ITR forms this year and the time needed to develop and roll out the new systems as the main reasons for the extension.

"The extension will help to allay stakeholders' concerns and allow enough time for compliance, ensuring the accuracy and integrity of the return filing process," the IT Department had added.

Now that the Excel utilities are available for more complex forms, taxpayers with diversified income streams can start making preparations for their returns far in advance of the updated deadline.