ITR-2 and ITR-3 excel utility released by Income Tax Department;
Taxpayers with capital gains, crypto, other incomes can now file ITR
Jul 11, 2025
Synopsis
ITR filing AY 2025-26: The Income Tax Department has released excel utilities for ITR-2 and ITR-3, enabling taxpayers with capital gains and crypto income to file returns for FY 2024-25 (AY 2025-26). Key updates include a capital gain split, share buyback loss allowance, and a raised asset/liability reporting limit to Rs 1 crore. Read below to know more.
The Income Tax Department has made available the excel utilities for ITR-2 and 3 forms. This allows those with taxable capital gains, crypto income, and more to begin filing their income tax returns (ITRs) starting today. The extended ITR filing deadline for FY 2024-25 (AY 2025-26) is September 15, 2025. Previously only ITR-1 and ITR-4 were released (both online and excel utility) which enabled a limited set of taxpayers with specified income classifications to file their ITR.
Do note that only the excel utilities have been released. That means taxpayers who plan to file their ITRs through the online e-filing portal will have to wait. The online filing mechanism is yet to be enabled. Soon this facility is likely to be enabled by income tax department which will be separately notified.
The Income Tax Department said on X (formerly Twitter) on July 11, 2025: “Attention Taxpayers! Excel Utilities of ITR-2 and ITR-3 for AY 2025-26 are now live and available for filing.”
Read below to know more about ITR-2 and ITR-3 excel utilities.
What is an Excel based ITR utility?
In the download section of the income tax department’s e-filing ITR portal, you can find the ITR-2 and ITR-3 utilities to download. After downloading, you will receive a Windows zip file. Extract this zip file and open the Excel file. The Excel file contains various schedules and options where you should enter your information as per requirements and declarations. After completing this, log in to the ITR e-filing portal to upload the file and submit your ITR. Remember to verify the filed ITR within 30 days of submission.
Who can file ITR-2?
According to the income tax department website as of July 11, 2025, ITR-2 can be filed by individuals or HUFs who:
Are not eligible to file ITR-1 (Sahaj)
Do not have income from profit and gains of business or profession and also do not have income from profits and gains of business or profession in the nature of:
interest
salary
bonus
commission or remuneration, by whatever name called, due to, or received by him from a partnership firm
Have the income of another person like spouse, minor child, etc., to be clubbed with their income – if income to be clubbed falls in any of the above categories.
SR Patnaik, Partner (head - taxation), Cyril Amarchand Mangaldas, says: "The Form ITR-2 needs to be filed by individuals and Hindu Undivided Families (“HUF”) who do not have any income from profits and gains of business or profession. Any individual who is eligible to file ITR-1 (which is applicable on individuals having income under the head of salaries, income from house property to the extent of one house property, and income from other sources, except winnings from lottery or race horses) is ineligible to file ITR-2."
What are the key updates to ITR-2 for FY 2024-25 (AY 2025-26)?
The key updates to ITR-2 form include the following:
Schedule-Capital Gain split for gains before/ after July 23, 2024 (post changes in Finance Act, 2024)
Capital loss on share buyback allowed if corresponding dividend income is shown as income from other sources (post 01.10.2024)
Asset & liability reporting limit raised to Rs 1 crore of total income
Enhanced reporting for deductions [80C,10(13A)], etc.
TDS section code to be reported in Schedule-TDS.
Aseem Mowar, Tax Partner, EY India told ET Wealth Online earlier: "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."
Who needs to file ITR-3?
Chartered Accountant Pranesh Jain says: ITR-3 is required for individuals and HUFs with income from business or profession, plus possibly other income sources. This includes: Business/professional income (other than presumptive basis taxation income), partnership income (non-LLP), derivatives trading, unlisted shares, capital gains (long term capital gain of shares upto 1,25,000 can be covered in ITR4 ), plus other sources.
In simple terms, ITR - 3 is filed for both Individual and HUF but when the taxpayer has income from Business and Professions. For Example, if the taxpayer has business income as well as income from any other source such as capital gains or income from transactions of digital assets (crypto) or income from a partnership firm etc. then the taxpayer will have to file his return in ITR 3.
What are the key updates to ITR-3 for FY 2024-25 (AY 2025-26)?
The key updates to ITR-3 form include the following:
Schedule-Capital Gain split for gains before/ after 23.07.2024 (post changes in Finance Act, 2024)
Capital loss on share buyback allowed if corresponding dividend income is shown as income from other sources (post 01.10.2024)
Asset & liability reporting limit raised to ₹1 crore of total income
Reference of sec 44BBC (cruise biz) added
Enhanced reporting for deductions [80C,10(13A)] etc.
TDS section code to be reported in Schedule-TDS
Ankit Jain, Partner, Ved Jain and Associates, says: "ITR-3 also includes provisions for Section 44BBC, requiring specific disclosures for taxpayers engaged in the business of operating ships or cruises."
Chartered Accountant Gopal Bohra, Partner, Direct Tax, N. A. Shah Associates LLP, says, "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."
[The Economic Times]
