In a key update for millions of taxpayers and professionals, the Income Tax Department has officially released the Excel-based utilities for ITR-2 and ITR-3 for Assessment Year (AY) 2025–26 on July 11, 2025. The release follows the earlier availability of ITR-1 and ITR-4 forms, and completes the suite of offline utilities for individual and HUF taxpayers with more complex income profiles.
With this release, individuals with income from capital gains, foreign assets, business or professional income, or more than one house property can now begin preparing their returns using the updated Excel utilities, in compliance with the latest income tax provisions.
Background and Context
ITR forms are updated annually by the Central Board of Direct Taxes (CBDT) to reflect changes introduced in the Union Budget and evolving disclosure requirements. AY 2025–26 marks the first full year under the faceless assessment and digital verification regime, increasing the importance of accurate return filing.
ITR-2 and ITR-3 are used primarily by:
ITR-2: Individuals and HUFs not having income from business or profession
ITR-3: Individuals and HUFs having income from business or profession
These forms support disclosure of capital gains, foreign income/assets, dividend income, and carry-forward of losses, among other detailed schedules.
Key Features of the Excel Utilities
| Feature | Description |
|---|---|
| Released On | July 11, 2025 |
| Platforms Supported | Windows (Microsoft Excel 2010 and above) |
| Pre-Filled Data Support | Yes (via JSON download from Income Tax Portal) |
| Schedules Included | Capital Gains, Foreign Assets, Business & Profession, AMT, etc. |
| Auto-Calculation | Basic computations for total income, taxes, and surcharge |
| Online Upload Capability | JSON export compatible with e-Filing 2.0 portal |
| Excel Macros Required | Yes (enable macros when using the file) |
| Updated for Budget 2025 | Includes new tax slab choices, surcharge cap, and dividend taxation |
Why It Matters
Deadline Pressure: With July 31 being the standard filing deadline for individuals not requiring audit, the release is crucial for tax consultants and self-filers to begin accurate computations.
Enhanced Disclosures: New reporting requirements under Budget 2025, such as crypto income disclosures, new capital gain segregation, and updated dividend reporting, are integrated into the Excel utilities.
Professional Use: ITR-3, especially, is essential for freelancers, consultants, and small business owners using presumptive taxation or maintaining books of accounts.
Expert Viewpoints
CA Aarti Shah, Tax Partner, FinEdge Advisors:
“This release comes just in time for non-salaried taxpayers with complex income streams. The Excel utility remains a trusted tool for accurate offline computation and audit trail.”
Ashish Goel, Lead Developer, Tax Filing Platform:
“We expect XML/JSON filing volumes to spike in the coming week now that the full set of ITR utilities is available. The integration with AIS data remains seamless.”
Key Reminders for Taxpayers
Enable Macros: Ensure macros are enabled to activate automated fields and calculators.
Validate JSON before uploading it on the e-Filing portal to avoid rejection.
Backup Files regularly, especially if working across multiple devices or clients.
Check AIS/26AS before finalizing return data—any mismatch can flag automated scrutiny.
Old vs New Regime: The utilities now include a clear comparison view for both regimes.
Conclusion
With the Excel utilities for ITR-2 and ITR-3 now live, all major return forms for AY 2025–26 are available for download and use. As the filing deadline draws near, taxpayers are urged to begin filing early, especially those with business, capital gain, or foreign income components. The Income Tax Department’s timely rollout reflects the push for increased digital compliance and ease-of-filing for diverse income categories.
