By buld_online 
The release of utilities for ITR-2 and ITR-3 forms by the Income Tax Department has been delayed, impacting numerous taxpayers during the current filing season. This delay means that salaried professionals, High Net Worth Individuals (HNIs), and freelancers who typically rely on these forms will have to wait to file their returns.
With the deadline for submission set for September 15, 2025, this postponement complicates the filing process for those who prefer to submit early and avoid potential last-minute issues. The delay has raised concerns about compliance and the potential for increased stress as the deadline approaches. Taxpayers are advised to remain patient and vigilant during this period.
ITR-2 is designated for individuals or Hindu Undivided Families (HUFs) who earn income from salaries, capital gains, multiple house properties, or overseas sources, but not from business or professional activities. It also accommodates the clubbing of a spouse’s or minor child’s income if it falls under these categories.
On the other hand, ITR-3 is suited for individuals and HUFs engaged in business or professional practices, such as legal, medical, or accounting professions, where income is derived from actual business profits. These forms are integral to ensuring that taxpayers accurately report their earnings and adhere to tax regulations. Understanding the distinctions between these forms is crucial for accurate filing and compliance.
The delay in releasing these forms poses challenges for affected individuals, as using the incorrect form can lead to processing delays and potential notices from tax authorities. This situation underscores the importance of selecting the correct form to ensure a smooth filing process. With the deadline for tax submissions looming, taxpayers are urged to stay informed and check regularly for updates to avoid any unexpected hurdles. The need for vigilance is higher than ever, as taxpayers must navigate the complexities of the tax system without the usual tools at their disposal.
The I-T Department released the Excel utility for filing ITR-1 and ITR-4 for the Assessment Year (AY) 2025-26 on May 30 and announced it on the department’s official handle on X (formerly Twitter).
“Attention taxpayers! The Excel Utility for ITR-1 and ITR-4 for AY 2025-26 has been enabled and is now available for taxpayers,” the post stated.
So far, the I-T Department has notified ITR forms 1 through 5 for filing returns for the Financial Year (FY) 2024-25 (AY 2025-26). ITR-1 (Sahaj) and ITR-4 (Sugam) were first notified on April 29, followed by ITR-3 on April 30. ITR-5 and ITR-2 were subsequently issued on May 1 and May 3, respectively.
On May 27, the I-T department announced an extension of the ITR filing deadline. The original due date of July 31, 2025, has now been pushed to September 15, 2025, for AY 2025-26.
In a statement, the Central Board of Direct Taxes (CBDT) explained that the extension was necessitated by the significant changes made to the ITR forms and the time needed to update systems and deploy the related filing utilities.