ITR-2 Offline Utility for AY 2025-26 Now Available: Taxpayers with Capital Gains, Crypto, and Foreign Assets Can File Returns Easily on New Platform
The process involves preparing and validating the return offline, generating a JSON file, and uploading it via the e-filing portal.
The ITR-2 Offline Utility for AY 2025-26 is now live, offering a smoother way for individuals and Hindu Undivided Families (HUFs) to file complex income tax returns-especially for those with capital gains, crypto or virtual digital asset (VDA) income, foreign assets, or multiple house properties. As the July 31st filing deadline for the assessment year draws closer, the rollout...
The ITR-2 Offline Utility for AY 2025-26 is now live, offering a smoother way for individuals and Hindu Undivided Families (HUFs) to file complex income tax returns-especially for those with capital gains, crypto or virtual digital asset (VDA) income, foreign assets, or multiple house properties. As the July 31st filing deadline for the assessment year draws closer, the rollout of this updated utility brings welcome clarity and advanced features for lakhs of Indian taxpayers, making the process both transparent and robust.
Who Needs ITR-2?
ITR-2 is designed for individuals and HUFs who don’t earn income from business or profession but have income such as:- Capital gains or losses (including from stocks and mutual funds)
- Foreign assets and income
- Multiple house properties
- Agricultural income exceeding ₹5,000
- Dividend or interest income over the exemption limit
- Directorship in a company or holding unlisted equity shares Taxpayers dealing with cryptocurrency transactions and those with foreign investments are specifically required to use this form now, following stricter reporting norms.
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What’s New This Year?
A major update for AY 2025-26 is the automatic import of capital gains details directly from the Annual Information Statement (AIS) and Taxpayer Information Summary (TIS), reducing manual data entry and minimizing mismatch errors. There’s also an expanded section for crypto and virtual digital asset income under the new “Schedule VDA,” making such disclosures mandatory for investors and traders in digital assets. A new deduction section-Schedule 80CCH-has been added to accommodate the Agniveer Corpus Fund, and the process for selecting between the old and new tax regimes has been highlighted with clearer prompts.Another key change is the ability to specifically report capital losses from share buybacks in line with recent legal amendments.
How to Get and Use the Utility The Income Tax Department has made downloading and using the ITR-2 offline utility straightforward:
- Head to the official portal (www.incometax.gov.in)
- Navigate to ‘Downloads’ > ‘Offline Utilities’
- Choose ITR-2 for AY 2025-26, available in both Excel and Java-based formats-Excel for regular users, Java for bulk data filers
The process involves preparing and validating the return offline, generating a JSON file, and uploading it via the e-filing portal. Taxpayers must then e-verify using Aadhaar OTP, net banking, or a digital signature.
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Key Differences: ITR-2 vs. ITR-1
| Criteria | ITR-1 | ITR-2 |
| Income limit | < ₹50 lakh | > ₹50 lakh allowed |
| House properties | Only one | Multiple |
| Capital gains | Not allowed | Full disclosure needed |
| Crypto/VDAs | Not allowed | Mandatory for users |
| Foreign assets/income | Not allowed | Allowed |
| Business income | Not allowed | Not allowed |
Why This Matters
This utility is a game-changer for those facing reporting obligations due to diverse income streams, including overseas investments and emerging assets like cryptocurrency. It reduces manual errors, speeds up compliance, and enhances the overall integrity of self-filing. For salaried individuals or retirees who also invest, trade, or work abroad, the ITR-2’s offline utility is the bridge to hassle-free, timely tax filing. As the digital regulatory framework evolves, quick adoption of these new tools will be vital for avoiding penalties and maximizing eligible deductions.The takeaway? If your finances go beyond a basic salary or pension, the newly upgraded ITR-2 offline utility is your best ally for AY 2025-26.
Download it early, gather your statements, and file with confidence-well ahead of the deadline.
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