With the commencement of the new financial year, the tax season is now officially underway. Taxpayers across the country can begin filing their Income Tax Returns (ITR) for the Assessment Year 2025–26 (Financial Year 2024–25).
As in previous years, the return filing can be done through both online and offline modes. However, this year brings a significant upgrade for a particular category of filers—the ITR-2 form.
The Income Tax Department, in its latest move to streamline return filing, has introduced a new Excel-based utility version of ITR-2, released on 25 March 2025. This version aims to simplify the filing process for certain taxpayers, particularly salaried individuals, pensioners, and those without business or professional income.
One of the standout features of this new utility is the option to file a revised return under Section 139(8A). This enhancement allows taxpayers to easily rectify any errors or omissions after filing, offering flexibility and reducing the stress associated with mistakes.
The ITR-2 form is specifically designed for:
If your income profile matches any of the above, ITR-2 is the appropriate form for your tax return.
Selecting the correct ITR form is crucial to avoid rejections or penalties. Let’s understand the key differences between ITR-1 (Sahaj) and ITR-2:
The Income Tax Department’s initiative to upgrade ITR-2 is a step in the right direction, especially for taxpayers with complex income profiles. By allowing revision under Section 139(8A), the department ensures that minor mistakes do not result in major compliance issues.
While this update simplifies the process, it is important for taxpayers to carefully assess their income sources before selecting the correct form and filing their returns in a timely manner.
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.
Published on: Apr 4, 2025, 3:21 PM IST
Team Angel One
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