With the income tax return (ITR) filing season underway, the absence of Excel utilities for ITR-2 and ITR-3 has left several taxpayers in a fix. While the utilities for ITR-1 (Sahaj) and ITR-4 (Sugam) are available, those who need to report business income or capital gains are waiting for the release of the relevant forms.
Although the last date to file ITRs was extended to September 15, 2025, many taxpayers are eager to file early to avoid last-minute hassles.
“ITR-1 and ITR-4 are relatively simpler forms,” said Sandeep Sehgal, Partner - Tax, AKM Global, a tax and consulting firm.
“But for taxpayers with more complex income sources such as capital gains or business income, ITR-2 and ITR-3 are essential. Since the capital gains tax regime was completely revamped for FY 2024-25, it has required significant changes in the ITR forms and their utilities. The extended deadline for individual taxpayers to September 15 also hints that the process may take time," he said.
ITR-2 is used by individuals and HUFs who earn from salary, more than one house property, capital gains, and other sources—but not from business or profession.
On the other hand, ITR-3 applies to individuals and HUFs with business or professional income, including freelancers, doctors, consultants, and partners in firms.
“While the ITRs have been notified, due to significant changes introduced in them, additional time is needed to update the filing utilities and make necessary system enhancements,” explained Anita Basrur, Partner, Sudit K. Parekh & Co. LLP. “This has led to delays in system development, integration, and testing. That’s exactly why the due date for filing returns was pushed back.”
Industry experts agree that the back-end work for schema updates, data validations, and compliance checks in line with the new capital gains rules may be causing the delay.
Until the utilities are released, taxpayers eligible for ITR-2 and ITR-3 can view the PDFs for reference but cannot complete their filings offline using Excel.
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