Heads Up, Taxpayers! ITR-2 & ITR-3 Utility Delays Affecting Early Filers
If you’re a salaried professional, HNI, or freelancer planning to file your income tax return early for Assessment Year (AY) 2025-26 (FY 2024-25), you might face a delay. The Income Tax Department has not yet released the offline utilities for ITR-2 and ITR-3 forms.
While ITR-1 (Sahaj) and ITR-4 (Sugam) utilities became available on May 30, taxpayers who need to use ITR-2 or ITR-3 will have to wait. This impacts those with income from capital gains, multiple house properties, foreign sources (ITR-2), or business/professional income (ITR-3).
Key Details & What This Means for You:
- Extended Deadline: Good news! The ITR filing deadline for AY 2025-26 has been extended from July 31, 2025, to September 15, 2025. This extension was necessary due to significant changes in the ITR forms and the time needed to update systems.
- Why the Delay? The Central Board of Direct Taxes (CBDT) cited comprehensive changes to the ITR forms and the time required for system updates and utility deployment as reasons for the delay.
- Risk of Using Wrong Form: It’s crucial to use the correct ITR form. Filing with the wrong form can lead to processing delays and potential notices from tax authorities.
Who Files Which Form?
- ITR-2: For individuals/HUFs with income from salary, capital gains, multiple house properties, or foreign sources, but NOT from business or professional activities.
- ITR-3: For individuals/HUFs with income from business or professional practices (e.g., freelancers, doctors, lawyers, consultants).
What You Should Do:
- Stay Informed: Keep a close watch on the official Income Tax Department website and their social media for updates on the release of these utilities.
- Prepare Your Documents: Use this time to gather all necessary financial documents (Form 16, capital gains statements, bank statements, etc.) so you’re ready to file as soon as the utilities are live.
Don’t let this delay cause panic. The extended deadline gives you more time, but vigilance is key!