ITR filing FY 2024-25: ITR-2 and ITR-3 excel utilities released by Income Tax Department - here's what taxpayers should know

ITR filing FY 2024-25 (AY 2025-26): The Income Tax Department has now made available the excel utilities for ITR-2 and ITR-3 forms, enabling individuals with taxable capital gains, crypto income and other specified incomes to file their income tax returns for AY 2025-26.

For the financial year 2024-25 (Assessment Year 2025-26), taxpayers must file their returns by September 15, 2025. Earlier, only ITR-1 and ITR-4 were accessible, both online and through excel utility, which allowed only specific categories of taxpayers to file returns.



On July 11, 2025, the Income Tax Department announced on X (formerly Twitter): "Attention Taxpayers! Excel Utilities of ITR-2 and ITR-3 for AY 2025-26 are now live and available for filing."

Sonu Iyer, Partner and National Leader, People Advisory Services, EY India tells TOI, “The Income-tax Department has released the Excel Offline e-filing utility for ITR-2 and ITR-3 return forms. However, the Online Utility for ITR-2/ ITR-3 is still awaited. Individual taxpayers who have to file tax return using ITR-2 / ITR-3 have an option to file their tax return but online utility is generally found to be more user friendly. Hopefully, the online utility for ITR-2 / ITR-3 will also be released shortly.”

What is an Excel Utility in ITR?

• According to an ET report, an Excel-based ITR utility is a downloadable tool available on the income tax department's e-filing portal, specifically for ITR-2 and ITR-3 forms. Upon downloading, you'll receive a Windows zip file that contains an Excel spreadsheet.
• The Excel file has multiple schedules and fields where taxpayers can input their financial information and declarations.
• After completing the required details in the spreadsheet, users need to access the ITR e-filing portal to upload the completed file and submit their Income Tax Return.
• It's essential to note that the filed ITR must be verified within 30 days of submission.

Also Read | ITR filing FY 2024-25: New versus old income tax regime - what helps you save more tax? Check calculations before filing return

ITR filing FY 2024-25: What are the changes in ITR-2?

The form introduces distinct sections in Schedule-Capital Gain to differentiate gains realised before and after July 23, 2024, following Finance Act, 2024 amendments. For share buybacks after October 1, 2024, capital losses are now permissible when the corresponding dividend income appears under other sources. The requirement for asset and liability disclosure now applies only to those with total income exceeding Rs 1 crore.

Additional reporting requirements have been implemented for various deductions, including sections 80C and 10(13A). The Schedule-TDS now requires specific mention of TDS section codes for better tracking.

Aseem Mowar, Tax Partner, EY India told ET, "The new ITR-2 form simplifies filing for taxpayers earning between Rs 50 lakh and Rs 1 crore by removing the need to report assets and liabilities. Additionally, the form now mandates specifying the section under which TDS has been deducted, enhancing transparency. Furthermore, the reporting of capital gains has been refined, requiring taxpayers to indicate whether asset transfers occurred before or after July 23, 2024, ensuring accurate tax rate application. Overall, the new ITR-2 Form streamlines the reporting requirements and may help reduce return processing errors/defects."

Also Read | ITR filing FY 2024-25: Why filing Income Tax Return is important even if you have no tax to pay - explained

ITR filing FY 2024-25: What’s new in ITR-3?

The form includes a revised Schedule-Capital Gain, segregating gains before and after July 23, 2024, following Finance Act 2024 amendments. For share buybacks post October 1, 2024, capital losses are now permissible when corresponding dividend income appears under other sources. The reporting threshold for assets and liabilities has been elevated to ₹1 crore of total income. Additionally, section 44BBC pertaining to cruise business has been incorporated.

The updates also feature enhanced reporting requirements for various deductions including 80C and 10(13A). The Schedule-TDS now requires specific TDS section code reporting.

Chartered Accountant Gopal Bohra, Partner, Direct Tax, N. A. Shah Associates LLP told ET: "The significant change in ITR-3 is the increased threshold monetary limit of total income from Rs 50 lakh to Rs 1 crore to report the Asset & Liabilities under "Schedule AL" of ITR. Now, individual taxpayers will be required to furnish the details of specified Assets & Liabilities in Schedule AL only if total income for the FY 2024-25 (AY 2025-26) exceeds Rs 1 crore and this move will make tax filing simpler for such an additional number of taxpayers whose total income is in the range of Rs 50 lakh to 1 crore."

Also Read | Income Tax Return: What is Form 16? Top things taxpayers should check in this document before filing ITR

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