Why you still can’t file ITR-2 and ITR-3 for FY 2024–25
Taxpayers using ITR-1 (Sahaj) and ITR-4 (Sugam), typically meant for salaried individuals and small businesses respectively, can already file their returns. These forms are relatively simpler and are not affected by recent changes in tax laws.
ITR-2 and ITR-3 Utilities
With the income tax return (ITR) filing window now open, many taxpayers expected to file early. However, those using ITR-2 and ITR-3 are facing delays due to the absence of Excel-based filing utilities. Here are the key reasons behind the hold-up:
ITR-1 and ITR-4 Utilities Already Available
Taxpayers using ITR-1 (Sahaj) and ITR-4 (Sugam), typically meant for salaried individuals and small businesses respectively, can already file their returns. These forms are relatively simpler and are not affected by recent changes in tax laws.
ITR-2 and ITR-3 Cater to Complex Income Profiles
ITR-2 is required for individuals and Hindu Undivided Families (HUFs) with income from salary, multiple properties, capital gains, and other sources. ITR-3 is applicable to those earning income from business or profession, including freelancers and consultants. These forms handle a wider and more complex set of disclosures.
Capital Gains Tax Regime Overhaul
Significant changes were introduced in the capital gains tax regime for FY 2024–25. These include adjustments to taxation rules on listed securities, mutual funds, and property. The revised framework requires major updates in the structure and validation logic of ITR-2 and ITR-3 forms.
Utilities Not Yet Released Due to System Enhancements
While the ITR forms have been notified, the utilities for offline filing are still under development. The Income Tax Department is working on updating system architecture to accommodate the changes, which includes coding new schema and ensuring compatibility with updated rules.
Back-End Work Underway for Validation and Integration
Industry experts have attributed the delay to extensive backend tasks such as schema creation, data validation mechanisms, and software integration. These steps are essential to ensure error-free processing and alignment with the new capital gains provisions.
Filing Deadline Extended to 15 September 2025
To accommodate these changes, the government has extended the filing deadline for individuals to 15 September 2025. The extension signals that more time is needed to finalise the updated utilities for complex income cases.
PDF Versions Available for Reference Only
Currently, taxpayers can view the PDF versions of ITR-2 and ITR-3 forms for reference purposes. However, until the Excel or Java-based utilities are released, offline filing remains on hold for these categories of taxpayers. While simpler ITR forms are ready for filing, those dealing with capital gains or professional income must wait for the necessary utilities. The delay reflects the scale of backend changes required to reflect the new tax structure.
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