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Time of India
6 days ago
- Business
- Time of India
ITR filing FY 2024-25: ITR-2 and ITR-3 excel utilities released by Income Tax Department - here's what taxpayers should know
ITR filing: For the financial year 2024-25 (Assessment Year 2025-26), taxpayers must file their returns by September 15, 2025. (AI image) ITR filing FY 2024-25: The Income Tax Department has now made available the excel utilities for ITR-2 and ITR-3 forms, enabling individuals with taxable capital gains, crypto income and other specified incomes to file their income tax returns for AY 2025-26. For the financial year 2024-25 (Assessment Year 2025-26), taxpayers must file their returns by September 15, 2025. Earlier, only ITR-1 and ITR-4 were accessible, both online and through excel utility, which allowed only specific categories of taxpayers to file returns. On July 11, 2025, the Income Tax Department announced on X (formerly Twitter): "Attention Taxpayers! Excel Utilities of ITR-2 and ITR-3 for AY 2025-26 are now live and available for filing." What is an Excel Utility in ITR? According to an ET report, an Excel-based ITR utility is a downloadable tool available on the income tax department's e-filing portal, specifically for ITR-2 and ITR-3 forms. Upon downloading, you'll receive a Windows zip file that contains an Excel spreadsheet. The Excel file has multiple schedules and fields where taxpayers can input their financial information and declarations. After completing the required details in the spreadsheet, users need to access the ITR e-filing portal to upload the completed file and submit their Income Tax Return . It's essential to note that the filed ITR must be verified within 30 days of submission. Also Read | ITR filing FY 2024-25: New versus old income tax regime - what helps you save more tax? Check calculations before filing return ITR filing FY 2024-25: What are the changes in ITR-2? The form introduces distinct sections in Schedule-Capital Gain to differentiate gains realised 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 requirement for asset and liability disclosure now applies only to those with total income exceeding Rs 1 crore. Additional reporting requirements have been implemented for various deductions, including sections 80C and 10(13A). The Schedule-TDS now requires specific mention of TDS section codes for better tracking. Aseem Mowar, Tax Partner, EY India told ET, "The new ITR-2 form simplifies filing for taxpayers earning between Rs 50 lakh and Rs 1 crore by removing the need to report assets and liabilities. Additionally, the form now mandates specifying the section under which TDS has been deducted, enhancing transparency. Furthermore, the reporting of capital gains has been refined, requiring taxpayers to indicate whether asset transfers occurred before or after July 23, 2024, ensuring accurate tax rate application. Overall, the new ITR-2 Form streamlines the reporting requirements and may help reduce return processing errors/defects." Also Read | ITR filing FY 2024-25: Why filing Income Tax Return is important even if you have no tax to pay - explained ITR filing FY 2024-25: What's new in ITR-3? The form includes a revised Schedule-Capital Gain, segregating gains before and after July 23, 2024, following Finance Act 2024 amendments. For share buybacks post October 1, 2024, capital losses are now permissible when corresponding dividend income appears under other sources. The reporting threshold for assets and liabilities has been elevated to ₹1 crore of total income. Additionally, section 44BBC pertaining to cruise business has been incorporated. The updates also feature enhanced reporting requirements for various deductions including 80C and 10(13A). The Schedule-TDS now requires specific TDS section code reporting. Chartered Accountant Gopal Bohra, Partner, Direct Tax, N. A. Shah Associates LLP told ET: "The significant change in ITR-3 is the increased threshold monetary limit of total income from Rs 50 lakh to Rs 1 crore to report the Asset & Liabilities under "Schedule AL" of ITR. Now, individual taxpayers will be required to furnish the details of specified Assets & Liabilities in Schedule AL only if total income for the FY 2024-25 (AY 2025-26) exceeds Rs 1 crore and this move will make tax filing simpler for such an additional number of taxpayers whose total income is in the range of Rs 50 lakh to 1 crore. " Also Read | Income Tax Return: What is Form 16? Top things taxpayers should check in this document before filing ITR Stay informed with the latest business news, updates on bank holidays and public holidays . AI Masterclass for Students. Upskill Young Ones Today!– Join Now
Time of India
21-05-2025
- Business
- Time of India
New Income tax bill: Get one-time set off of long-term capital loss against short-term capital gains from tax year 2026–27
A one-time tax relief proposed under the new Income Tax Bill, 2025 could significantly reduce capital gains tax liabilities for many individual taxpayers. The new Income Tax bill allows long-term capital losses (LTCL) incurred up to March 31, 2026, to be set off against any short-term capital gains (STCG) from tax year 2026–27 onwards. This marks a key departure from the current provisions under the Income Tax Act, 1961, which only allow LTCL to be set off against long-term capital gains (LTCG). The proposed change, found in Clause 536(n) of the new bill, enables broader capital gains tax planning and faster loss absorption. 'Under clause 536(n) of the new tax bill, 2025 any capital loss, whether long-term or short-term, computed under the old Income Tax Act, 1961 and brought forward as on 31 March 2026, may be set off and carried forward against 'income under the head Capital gains' under the new tax bill 2025. Notably, this provision does not draw a distinction between long-term and short-term capital gains for the purpose of set-off,' said Chartered Accountant Dr Suresh Surana, according to an ET report. What's changing? Currently, under Section 74 of the Income Tax Act, 1961, long-term capital losses can only be set off against LTCG. This restriction limited the flexibility for taxpayers to manage losses. 'Currently, the Income Tax Act, 1961 allows the set-off of brought forward LTCL only against LTCG, limiting taxpayers' flexibility to offset LTCL with STCG,' said Aseem Mowar, Tax Partner at EY India. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like ตลาดหุ้นกำลังส่งสัญญาณว่าอยู่ในช่วงขาลง? IC Markets สมัคร Undo However, as per the transitional provision in the new Income Tax Bill, this restriction is being eased — but only temporarily — for losses incurred up to March 31, 2026. 'The proposed new Income Tax Bill, 2025 continues this restriction for LTCL incurred after April 1, 2026, but the 'Repeal and Saving' clause in Section 536 (specifically 536(2)(n)) permits the set-off of LTCL incurred until March 31, 2026, against any capital gains under ITB 2025 for tax years starting on or after April 1, 2026, for up to eight financial years immediately succeeding the financial year in which such loss was first computed under the current Income Tax Act, 1961,' Mowar explained. Why it matters This one-time relief can significantly reduce tax outgo for individuals who have accumulated LTCL over the years and have struggled to match it with sufficient LTCG. 'The transitional provision under Section 536(n)... carries significant implications for taxpayers holding accumulated capital losses, particularly long-term capital losses (LTCL), as on 31 March 2026,' Surana said. 'By permitting the set-off of such brought forward losses, whether long-term or short-term, against any form of capital gains... the legislation offers a temporary but meaningful departure from the restrictive loss-set-off rules under the current Income-tax Act, 1961.' It also opens the door for tax planning strategies ahead of FY 2026–27. 'Taxpayers can sell investments likely to incur long-term losses before April 1, 2026, allowing them to offset these losses against future short-term capital gains,' Mowar added. 'This dispensation, albeit temporary, allows taxpayers to leverage their losses more effectively, reducing overall tax liabilities.' Why is this only a one-time relief? Since the relief falls under the 'Repeal and Saving' clause of the new bill, it is designed to offer transitional assistance as the old Income Tax Act, 1961 is replaced. 'It is important to note that 'Repeal and Saving' clauses are typically included when old legislation is replaced with new one, ensuring that certain rights or obligations under the old law are preserved,' said Mowar. 'The majority may argue that this appears to be a well-thought-out dispensation... others may view it as an oversight, as it contradicts established provisions. Thus, it remains to be seen how the provision is ultimately enacted.' he added. Stay informed with the latest business news, updates on bank holidays and public holidays . AI Masterclass for Students. Upskill Young Ones Today!– Join Now
