ITR Filing 2025: Key Changes in ITR-2 and ITR-3 Excel Forms for AY 2025-26

The income tax filing deadline for FY 2024–25 (Assessment Year 2025–26) has been extended from July 31 to September 15, 2025. The Excel utilities for ITR-2 and ITR-3 are now live on the Income Tax Department's portal, making it easier for taxpayers to file returns.

Who Should Use ITR-2 and ITR-3?

• ITR-2 is for individuals with salary income, capital gains, cryptocurrency profits, and foreign assets.
   
• ITR-3 is meant for those running businesses, engaged in F&O trading, or those who are subject to tax audit.

What’s New in ITR-2 for AY 2025–26?

• New Dividend Row

A row has been added to report dividend income from share buybacks under Section 2(22)(f).

• Land Sale Reporting Split by Date

Property sales are now to be reported separately if sold before or after July 23, 2024, to apply the correct indexation benefit.

• Capital Loss from Buyback

Losses from company buybacks (under Section 68) can now be reported, but related dividend income must also be shown.

• Higher Income Reporting Threshold

Individuals with total income above ₹1 crore must now declare all assets and liabilities, up from the earlier ₹50 lakh limit.

• Capital Gains Tax Clarity

A new column helps you show if your capital gains happened before or after July 23, 2024, since the Finance Act 2024 brought changes.

• TDS Section Code Requirement

Taxpayers must now mention the exact section under which TDS was deducted in Schedule TDS.

Read More: ITR Filing Schedule for FY 2024–25: Key Deadlines to Know.

What’s New in ITR-3 for AY 2025–26?

• Asset Reporting Threshold Raised

Only those with income over ₹1 crore need to declare assets and liabilities, easing compliance for others.

• Detailed Deduction Disclosures

You must clearly break down deductions used to lower taxable income.

• Capital Gains Date-Specific Reporting

If a capital asset was sold, it must be reported based on whether the sale happened before or after July 23, 2024.

• More VDA Disclosures

Additional fields have been added for virtual digital asset (VDA) income like cryptocurrency.

• Buyback Proceeds Reporting

Money received from share buybacks after October 1, 2024, can be shown as dividend income. The purchase cost can be carried forward as a capital loss.

• Precise TDS Reporting

Like ITR-2, ITR-3 also requires specifying the TDS section code.

Conclusion

The updated ITR-2 and ITR-3 forms for AY 2025–26 bring more clarity and detailed reporting for capital gains, buybacks, and TDS. Taxpayers must check which form applies to them and file before the new deadline—September 15, 2025. Being aware of these changes helps avoid errors and delays in processing refunds.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.

Investments in the securities market are subject to market risks. Read all the related documents carefully before investing.