ITR 2025: I-T Dept Releases Revamped Excel-Based Utility For Filing ITR-2

The Income Tax Department recently introduced a revamped version of its excel-based utility for filing Income Tax Return (ITR)-2 for the assessment Year 2025-26. The updated version, utility excel-based version 1.11, was launched on March 25, 2025, and included enhanced features for simplified tax return filing

ITR Filing for FY 2024-25

The ITR filing process for FY 2024-25 will commence on April 1, 2025. Taxpayers can file their returns both online and offline. The latest updated version supports filing under Section 139(8A), allowing amendments to returns if necessary.

Who Should File ITR-2

ITR-2 will be applicable to resident individuals and Hindu Undivided Families (HUFs) for those whose total income exceeded Rs 50 lakh in a financial year. It is required for individuals earning income from:

• Salary or pension

• Multiple house properties

• Capital gains

• Other sources (e.g., lottery winnings, racehorse earnings)

• Foreign income or assets outside India

• Agricultural income exceeding Rs 5,000

• Directorship in a company or ownership of unlisted equity shares

Additionally, individuals who have tax deductions under Section 194N or possess carried-forward losses must file ITR-2.

ITR-1 (Sahaj) Versus ITR-2

Taxpayers will have to select the appropriate form for filing their returns. ITR-1 (Sahaj) was made for salaried individuals with a straightforward financial profile, limited to one house property, agricultural income up to Rs 5,000, and an annual income below Rs 50 lakh.

For an individual earning over Rs 50 lakh, or possessing different sources of income, capital gains, foreign assets, or holding positions including company directorships. In case someone filed an incorrect form, it can lead to a defective return notice fro the IT Department.

The latest excel-based utility, version 1.11, was released on March 25, 2025. The first version was released on April 1, 2024. Meanwhile, the latest JSON Schema updates were released on January 16, 2025.

The revamped ITR-2 utility is supposed to simplify the filing process, incorporating pre-filled data such as salary, interest income, and tax deductions for accuracy and efficiency. Taxpayers are advised to asses their financial details carefully before filing their returns to avoid discrepancies.

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