ITR-2 and ITR-3 e-Filing and Offline, Excel Utility Release Delayed! Know Why and What to Do Now
Fortunately, the extended deadline means there is no need to rush.
The current income-tax return (ITR) filing season for Assessment Year 2025–26 has been disrupted by the delayed release of the offline Excel utilities for ITR-2 and ITR-3 forms.
While the tools for ITR-1 (Sahaj) and ITR-4 (Sugam) were made available on May 30, 2025, taxpayers who need ITR-2 or ITR-3 must continue waiting before they can submit returns through these offline channels.
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Who Is Affected
Professionals earning salaries along with capital gains or foreign income, owners of more than one property, Hindu Undivided Families (HUFs), and individuals carrying on business or professions all fall under the categories that require ITR-2 or ITR-3. High-net-worth individuals and freelancers also depend on these forms to accurately declare their diverse income streams.
Staggered Form Notifications
The Central Board of Direct Taxes (CBDT) issued notifications for the ITR forms in phases:
- ITR-1 and ITR-4: Notified on April 29, 2025, with Excel utilities going live May 30.
- ITR-3: Notified April 30, but its utility remains pending.
- ITR-5: Notified May 1.
- ITR-2: Notified May 3, with no Excel tool yet released.
This staggered rollout has left ITR-2 and ITR-3 filers without the familiar offline templates, forcing them to rely on online JSON-based utilities or postpone their filings.
Underlying Causes of the Delay
Several factors have combined to push back the release of the ITR-2 and ITR-3 Excel utilities:
- Revised Form Structures The layout and schedules for ITR-2 and ITR-3 underwent significant revisions this year, requiring extensive backend adjustments on the e-filing portal before the Excel formats could be finalized.
- Annual Information Statement (AIS) and Tax Information Statement (TIS) Updates Work on integrating dynamic feeds of AIS and TIS data into the portal has been ongoing. Ensuring that taxpayers can correctly import these statements into their returns has taken extra development and testing time.
- Form-16 Issuance Lags Although employers are expected to issue Form-16 (the certificate of TDS on salary) by June 15, many have been late. Without these certificates, salaried taxpayers face difficulty finalizing their data.
- Statement of Financial Transactions (SFT) Refresh High-value transactions and advance-tax credits are captured in the SFT, which is updated only in the second week of June. Early filers risk missing these entries if they file before the SFT data is refreshed.
- Portal Performance Issues Some taxpayers encountered slowdowns and glitches when downloading AIS and TIS, indicating that the portal itself needs further optimization to handle peak loads.
Extended Deadline Provides Breathing Room
Recognizing these challenges, the CBDT extended the ITR filing deadline from July 31 to September 15, 2025. This extension is meant to give taxpayers additional time to gather documents, complete their preparations, and avoid rushed, error-prone filings.
However, the extension should not encourage procrastination. Tax experts advise using the extra weeks to compile all necessary documents—Form-16, bank statements, capital gains statements and AIS/TIS downloads—and to begin preparing returns offline using the JSON utilities. This preparatory work will allow a smoother transition once the Excel templates arrive.
Choosing the Right Form
Selecting the correct form is crucial to avoid processing delays or queries from the tax department:
- ITR-2 is meant for individuals and HUFs who earn income from salary or pension, capital gains, multiple house properties or foreign sources, and who do not have business or professional income.
- ITR-3 is designed for taxpayers with income from proprietary business or profession, including partners in firms and professionals such as doctors, lawyers and chartered accountants.
Filing on the wrong form can trigger notices or require amendments later, so it’s important to verify one’s eligibility before submission.
Practical Strategies Until Utilities Arrive
While waiting for the Excel tools, taxpayers can take these steps:
- Delay Filing Until After June 15 This ensures Form-16 certificates are received and the SFT data is updated.
- Use JSON-Based Utilities Available on the e-filing portal for ITR-2 and ITR-3, these allow schedules to be populated offline in a structured format. Early use helps identify errors before final submission.
- Monitor Official Channels Regularly check the Income Tax Department’s website and its social media handles for announcements on the release of the Excel utilities.
- Seek Professional Help for Complex Returns Returns involving foreign assets, presumptive income schemes or partner share computations can benefit from expert advice to ensure full compliance and optimal tax outcomes.
Preparing for the Final Push
Once the Excel utilities for ITR-2 and ITR-3 are released, a surge in filings is likely. Taxpayers who have already used the JSON utilities will find it easier to transfer data into Excel, complete validations and submit without last-minute server slowdowns.
In the meantime, maintaining vigilance is key. Confirm that all documents—Form-16, bank statements, capital gains documents and AIS/TIS downloads—are accurate and complete. Keep detailed records of dates when certificates are issued and when statements are downloaded.
Having organized paperwork and preliminary schedules ready will minimize stress and errors once the offline tools become available.
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