ITR 2025: Income Tax Dept Upgrades ITR-2 Filing, Here's What Taxpayers Must Know

As the new financial year 2025-26 has already begun, there are some new updates that taxpayers must know. The Income Tax Department has now rolled out an upgraded version of its Excel-based utility for Income Tax Return (ITR)-2 filing. This upgraded utility is expected to simplify the tax return filing process for individuals and Hindu Undivided Families (HUF) who earn an income from business or professional activities.

What is this upgrade?

The new Excel Utility (version 1.11) was released on March 25, 2025, and will allow for easier ITR filing. What are these updates? Let’s take an overview.

The upgrade includes support for filing revised returns under Section 139(8A). This would be significant for taxpayers needing to correct or amend their original returns.

Who needs to file the ITR-2 Form?

It’s important to note that ITR-2 is not a general-purpose form. It’s meant for taxpayers with more complex income profiles, which include:

• Taxpayers (individuals or HUFs) who have an annual income exceeding Rs 50 lakh

• Individuals who earn income from capital gains such as stock market investments or sale of property

• People who own more than one residential property

• Director in companies

• Shareholders of unlisted companies

• People who earn/have foreign income or assets including any overseas bank account

• Non-residents (NRIs) or those with ‘Resident but not Ordinary Resident Resident (RNOR) status

• People who have agricultural income over Rs 5,000

If you are someone whose income encompasses any of the above situations, you may be required to file ITR-2 and not the simpler ITR-1 (Sahaj Form). ITR-1 is limited to salaried individuals earning less than Rs 50 lakh from salary, one house property, interest income, or pension.

What is new in ITR-2 Utility Version 1.11?

The upgraded Excel-based utility aims to reduce taxpayers' burden as it automates data entry and minimises manual errors. The key highlights of the new version are:

Support for Section 139(8A): This would allow for filing revised returns if any mistakes or omissions are found after your submission.

User-friendly model: This is expected to improve accuracy and reduce calculation errors by providing pre-filled data (such as salary, interest, and TDS) sourced directly from the taxpayer's PAN profile.

Offline Utility: This function offers a secure and simple filing method for those taxpayers who do not prefer to use the online portal.

JSON Schema: This method ensures compatibility with ITD’s e-filing system for easy data validation and submission.

Key Deadline and Filing Options You Should Know

You can now file your ITR for Assessment Year (AY) 2025-26 (FY 2024-25), the deadline for this is July 31, 2025. Both the online and offline options are available for you. Many might prefer the online portal as it is efficient, quick and easy - now even more so with the upgraded Excel-based utility.

This upgrade gives flexibility to those who are more comfortable preparing their returns offline before uploading them on the e-filing website.

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