After a prolonged wait and growing concerns among taxpayers, the Excel Utilities for ITR-2 and ITR-3 for Assessment Year 2025-26 have finally been made available by the Income Tax Department. This release brings major relief, especially for salaried individuals with capital gains, foreign income, or multiple house properties, and for professionals and business owners who depend on these forms for income tax filing.
🔍 Why This Was a Concern
Till now, only ITR-1 and ITR-4 utilities were available for use, leaving a large segment of taxpayers—especially those with more complex financial situations—unable to file their returns. Many professionals, freelancers, partners in firms, and individuals with capital market transactions were eagerly waiting for ITR-2 and ITR-3 utilities to begin their tax filing process.
📌 Who Uses ITR-2 and ITR-3?
- ITR-2 is applicable to individuals and Hindu Undivided Families (HUFs) not having income from business or profession, but having:
- Income from salary or pension
- Income from more than one house property
- Capital gains
- Foreign income or foreign assets
- Income from agriculture above ₹5,000
- Shareholding in unlisted companies
- ITR-3 is applicable to individuals and HUFs having income from business or profession, in addition to the sources listed above. It also includes:
- Freelancers and consultants
- Partners in partnership firms
- Derivatives and intraday traders
- Professionals like doctors, lawyers, CAs, etc.
🧾 What’s New in These Utilities?
The updated Excel utilities come with enhanced validation features, updated reporting requirements post recent Budget amendments, and refined sections for declaring:
- Capital gains before and after 23 July 2024
- Income from unlisted shares
- Trading and speculative income
- Foreign assets and foreign taxes paid
- Section-wise breakup of deductions
These additions aim to streamline the tax computation process and ensure better compliance.
✅ What Should Taxpayers Do Now?
- Download the appropriate utility based on your income profile—either ITR-2 or ITR-3.
- Prepare your documents like Form 16, AIS, capital gain reports, and business financials.
- Fill and validate the Excel utility carefully and generate the return JSON.
- Submit on the income tax portal and complete e-verification.
The long-awaited release of ITR-2 and ITR-3 utilities has finally enabled taxpayers with complex income structures to start their return filing process. With the utilities now available, it’s the right time to begin preparing and avoid last-minute rush.
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