The Income Tax Return (ITR) filing season for Assessment Year (AY) 2025-26 is underway. Tax returns corresponding to the Financial Year 2024-25 can be filed starting April 1, 2025. As in previous years, options for both online and offline filing are available to taxpayers. An important update has been provided by the Income Tax Department concerning the ITR-2 form utility.
What is the New ITR-2 Excel Utility?
An upgraded Excel-based utility for filing ITR-2 has been released by the Income Tax Department. This utility is specifically designed for use by certain taxpayers.
> Target Users: Individuals and Hindu Undivided Families (HUFs).
> Income Condition: Applicable only if income is not earned from any business or profession.
> Utility Version: The new release is Version 1.11.
> Release Date: This version was launched on March 25, 2025.
This tool aims to simplify the return filing process for taxpayers like salaried employees and pensioners who fall under the ITR-2 category.
Key Feature: Updated Return Filing [Section 139(8A)]
A significant enhancement in this new utility version is the inclusion of functionality related to updated returns:
i) The facility to file updated returns under Section 139(8A) of the Income Tax Act is now provided within the Excel utility.
ii) This allows taxpayers an opportunity to rectify omissions or errors in their originally filed returns, subject to specified conditions and timelines.
Who is Required to File ITR-2?
ITR-2 form filing is mandated for individuals and HUFs who do not have income from business or profession but meet certain criteria. Filing ITR-2 becomes necessary if any of the following conditions apply:
i) Total annual income exceeds ₹50 lakh.
ii) Income is earned from Capital Gains.
iii) Rental income is received from more than one house property.
iv) Income is earned from foreign sources or foreign assets are held.
v) Directorship is held in any company.
vi) Investments are held in unlisted equity shares.
Choosing Between ITR-1 (Sahaj) and ITR-2
For salaried individuals or pensioners without business income, correct form selection between ITR-1 and ITR-2 is crucial.
ITR-1 (Sahaj) should be filed if:
> Total annual income does not exceed ₹50 lakh.
> Income sources are limited to Salary, Pension, Income from One House Property, and/or Income from Other Sources (like Interest, Dividends).
> Agricultural income does not exceed ₹5,000.
ITR-2 must be filed if:
> Total annual income exceeds ₹50 lakh.
> Any income is derived from Capital Gains.
> Income is received from more than one house property.
> Directorship is held in a company.
> Investments are held in unlisted equity shares.
> Foreign income is earned, or foreign assets are held.
> Agricultural income exceeds ₹5,000.
Important Considerations for Filing
> Use the Latest Utility: Ensure the latest version (1.11 as of March 25, 2025) of the ITR-2 Excel utility is used if filing offline via this method. It can be downloaded from the official Income Tax e-filing portal.
> Filing Deadline: The general due date for filing ITR for AY 2025-26 for individuals/HUFs not requiring an audit is typically July 31, 2025. This should be confirmed with official notifications.
> Avoid Incorrect Form Filing: Using the wrong ITR form can cause problems. Your return might be classified as ‘defective’ by the Income Tax Department. A notice requiring correction could be issued.
Selection of the correct ITR form is essential. Ensure your income sources and financial activities align with the chosen form for a smooth and compliant tax return filing process. (FE)
Any idea when ITR-2 (AY 2025-26) will be available on e-filing portal?
ITR-2 is already available. But it is causing problem to upload json file !!! We are unable to locate where the json file is saved & how to find it to upload to complete the filing of return.
Filling some of the lines in the main page was a big headache! It was not allowing to fill all the data though?