The Income Tax Department has enabled the online filing of ITR-2 and ITR-3 forms for the assessment year 2025-26. This allows individuals with taxable capital gains, crypto income, and other specified incomes to file their income tax returns. The excel utilities for these forms are also available.

The due date for filing Income Tax Returns for the Financial Year 2024-25 (Assessment Year 2025-26) for non-audit taxpayers has been extended to September 15, 2025. The original deadline was July 31, 2025. Taxpayers can file their ITR for FY 2024-25 (AY 2025-26) without late fees until the revised due date. Filing after this date will attract interest under Section 234A and a penalty under Section 234F.

Who Can File ITR-2?

ITR-2 is for individuals and Hindu Undivided Families (HUFs) who do not have income from profits or gains from business or profession. It is suitable for people with more complex income structures. Taxpayers eligible to file Form ITR-2 include:

• Individuals and HUFs not carrying on business or profession under a proprietorship.
• Those with income from salary or pension.
• Individuals having income from more than one house property.
• Individuals who have income from capital gains, both short-term and long-term.
• Those with agricultural income exceeding ₹5,000.
• Resident not ordinarily resident and a non-resident.
• Individuals having foreign assets or foreign income.
• Taxpayers owning unlisted shares.

ITR-2 cannot be filed by individuals or HUFs whose total income includes income from business or profession, or income in the nature of interest, salary, bonus, commission, or remuneration from a partnership firm. Companies and trusts are also not eligible to file ITR-2. However, a salaried individual can use ITR Form 2 if they have multiple sources of income like a house, properties etc.

Who Can File ITR-3?

The ITR-3 form is designed for individuals and Hindu Undivided Families (HUFs) who have income from a business or profession. It is applicable for those engaged in proprietary businesses or earning income from partnerships.

Those having income from the following sources are eligible to file ITR-3:

• Carrying on a business or profession.
• Income from a single-house property or multiple-house properties.
• Income from short-term or long-term capital gains.
• Income earned from a business or profession that practices under a proprietorship firm owned by the individual or a HUF.
• Income earned from foreign assets.
• The taxpayer is the director of a company or business.
• The taxpayer's residential status is either resident or non-resident of India.
• The taxpayer is drawing an income from a pension.
• The taxpayer has investments in unlisted equity shares.
• The taxpayer's income is taxable under 'profits and gains of business or profession.

Restrictions to Using ITR-3:

• Individuals or HUFs with income exceeding ₹50 lakhs from business or profession (excluding income from agriculture) cannot use ITR 3.
• Individuals or HUFs with income from foreign sources (excluding income from agriculture) cannot use ITR 3.
• Any person who is eligible to file ITR-1, ITR-2 and ITR-4 is not eligible to file ITR-3.

Key Changes in ITR Forms

The ITR forms for Assessment Year 2025-26 feature significant modifications in structure and content, designed to streamline the compliance process, improve transparency and ensure precise reporting. Schedule-Capital Gain has distinct sections to differentiate gains realized before and after July 23, 2024, following Finance Act, 2024 amendments. For share buybacks after October 1, 2024, capital losses are now permissible when the corresponding dividend income appears under other sources. The threshold for reporting assets and liabilities in the ITR-3 form has been raised to Rs. 1 crore of total income. Taxpayers must report TDS sections in 'Details of TDS deducted' for better accuracy and reconciliation.