There’s good news for taxpayers—The Income Tax Department has released the Excel utility for ITR-2 and ITR-3 forms. This will make it easier for individuals with income from capital gains, crypto assets, or other sources to file their returns. Additionally, new features such as claiming loss on share buyback have been included in these updated forms.
What is the Excel Utility and How to Use It?
The Excel utility is a tool available for download on the official Income Tax Department website. Once downloaded, a zip file will be extracted to provide the ITR-2 or ITR-3 form in Excel format. These forms contain various schedules to fill in details about income, deductions, tax paid, and more. After entering all the information, the file must be uploaded on the Income Tax e-filing portal by logging in. It is important to verify the return within 30 days of filing.
Who Can File ITR-2?
The ITR-2 form is for individuals or Hindu Undivided Families (HUFs) who do not have income from business or profession. If your income comes from salary, house property, capital gains, or other sources—and you are not earning professional income from a partnership firm—you can file ITR-2. You can also use ITR-2 if your minor child’s or spouse’s income is clubbed with yours and falls into these categories.
Who Should File ITR-3?
ITR-3 is meant for individuals earning income from business or profession. If you earn through professional fees, commissions, or have your own business, then ITR-3 is the correct form for you.
What’s New in ITR-2 and ITR-3?
Several important changes have been made to help taxpayers report income and deductions more accurately:
Common Updates in Both Forms:
- New Capital Gains Schedule: Capital gains must now be split into gains earned before and after 23 July 2024, as per amendments in the Finance Act 2024.
- Claiming Loss on Share Buyback: Taxpayers can now claim losses on share buybacks if related dividend income is reported under “Income from Other Sources”.
- Increased Asset & Liability Reporting Limit: Now, details of assets and liabilities are required only if the total income exceeds ₹1 crore.
- Detailed Deduction Reporting: More detailed information is needed for deductions under sections like 80C and 10(13A).
- New TDS Schedule Code: TDS details must now be reported using a new section code system.
Additional Update in ITR-3:
- Inclusion of Section 44BBC: This section relates to taxpayers involved in cruise business and is now added to the form.
Not Yet Available on Online Portal
Though the Excel utility has been released, ITR-2 and ITR-3 cannot yet be filed directly through the online portal. Taxpayers wanting to file online will need to wait until the Income Tax Department activates this feature, which will be notified separately.
Keep the Deadline in Mind
The last date to file ITR for the Financial Year 2024-25 (Assessment Year 2025-26) is 15 September 2025. Taxpayers who need to file ITR-2 or ITR-3 can now begin the process using the Excel utility and avoid last-minute stress.
The release of the updated Excel utilities for ITR-2 and ITR-3 is a major convenience for those with income from capital gains, crypto, or business/profession. These updates are a step toward making tax compliance more transparent and user-friendly. It’s time to gather your financial details and start preparing your return!