As the income tax return (ITR) filing season for Assessment Year 2025-26 progresses, many taxpayers are facing uncertainty due to the delayed release of utilities for ITR-2 and ITR-3 forms. While the Excel and JSON utilities for ITR-1 (Sahaj) and ITR-4 (Sugam) have already been made available, those required to report capital gains or business income are still waiting for the relevant filing utilities.
ITR-2 and ITR-3: Who Needs Them?
The ITR-2 form is applicable to individuals and Hindu Undivided Families (HUFs) who have income from:
✔ Salary or pension
✔ More than one house property
✔ Capital gains (such as sale of shares, mutual funds, property, etc.)
✔ Other sources (excluding business or professional income)
Meanwhile, ITR-3 is meant for individuals and HUFs with income from:
✔ Business or profession
✔ Freelancing, consultancy, or professional services
✔ Partnership in firms
Major Changes to Capital Gains Rules Delayed Utility Release
Experts point out that the key reason behind the delay is the revamp of the capital gains tax regime for Financial Year 2024-25. Due to these significant changes, the ITR forms and their utilities needed substantial modifications.
“The new capital gains structure has made it essential to redesign ITR forms, which requires additional time for development, testing, and integration,” explained Sandeep Sehgal, Partner – Tax at AKM Global.
Extended Due Date for ITR Filing Provides Relief
To ease the process for taxpayers, the Income Tax Department has already extended the due date for filing ITRs to September 15, 2025, for individuals who are not required to get their accounts audited. This extension provides much-needed time for the release and testing of updated utilities.
Why the Delay? Insights from Industry Experts
According to tax professionals, while the ITR forms have been officially notified, updating the corresponding filing utilities, ensuring data validation, and making system enhancements are complex tasks. The backend processes also need to incorporate new compliance requirements, which has contributed to the delay.
“The system development and testing phase for these utilities is critical, especially with the extensive changes in reporting requirements. Taxpayers should expect some time before the Excel and JSON utilities for ITR-2 and ITR-3 become available,” said Anita Basrur, Partner at Sudit K. Parekh & Co. LLP.
What Can Taxpayers Do in the Meantime?
While the utilities are awaited, taxpayers can:
✔ Download and review the PDF versions of ITR-2 and ITR-3 for reference
✔ Organize and keep relevant documents ready
✔ Consult tax advisors for pre-filing preparations
✔ Monitor updates on the Income Tax Department’s e-filing portal
Final Word
Although the delay may be inconvenient for early filers, the extended deadline and system updates aim to ensure smoother and error-free filing for taxpayers with complex income sources. Those eligible for ITR-2 and ITR-3 are advised to stay informed and prepared for the upcoming release of filing utilities.