Starting July 18, 2025, the Income Tax Department has enabled online filing for ITR-2 on its official e-filing portal, allowing millions of taxpayers with slightly complex income structures to file their returns more easily.
In an update shared on X (formerly Twitter), the department said:
“Kind Attention Taxpayers! Income Tax Return Form of ITR-2 is now enabled for filing through online mode with pre-filled data at the e-filing portal.”
This means salaried individuals, property owners, and those with capital gains no longer need to download Excel utilities or generate JSON files to upload their returns.
Who should file ITR-2?
The ITR-2 form is meant for individuals and Hindu Undivided Families (HUFs) who:
- Earn income from salary or pension
- Own more than one house property
- Have capital gains (from stocks, mutual funds, or property sales)
- Have foreign assets or income
However, it cannot be used by those who have income from business or profession, or who receive remuneration from a partnership firm.
What’s new this year?
Until now, only ITR-1 and ITR-4 were available for direct online filing. ITR-2 could only be filed using the Excel utility — a slower, more manual process. With this update, the portal now:
- Auto-fills data from Form 26AS, AIS, PAN, and TIS
- Allows taxpayers to file returns directly online
- Eliminates the need to generate and upload JSON files
This streamlined process is a big relief for taxpayers with more detailed financial profiles.
Why the delay?
The Income Tax Department usually rolls out online filing utilities by April or May. But this year, ITR-2 and ITR-3 utilities were delayed by over 100 days, frustrating many taxpayers waiting to file.
The delay, combined with changes in ITR forms, led the government to extend the ITR filing deadline for non-audit cases from July 31 to September 15, 2025.
As of July 18, over 1.41 crore ITRs have been filed, with 1.12 crore already processed.
What about ITR-3?
While the Excel utility for ITR-3 has been released, the online filing with pre-filled data is still not live. ITR-3 is used by:
- Freelancers and consultants
- Business owners
- Traders (including crypto and stock traders)
- Individuals with income from business or profession
These taxpayers will still need to use the Excel-to-JSON upload method for now.
PLI for Simplicity: Pre-filled data is a game changer
With online ITR-2 now active, taxpayers can expect:
- Faster filing process
- Fewer errors
- Less dependency on third-party tax consultants
The move is expected to boost compliance, reduce the burden on salaried taxpayers and investors, and simplify tax filing for those who previously had to wait or rely on professionals.
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