If you are an NRI with capital gains, crypto income, or other complex income sources, here’s an important update for your tax filing this year. The Income Tax Department of India has released the excel utilities for ITR-2 and ITR-3 for FY 2024-25 (AY 2025-26). This will help NRIs like you file returns for incomes that do not fit within the simple ITR-1 or ITR-4 forms.
Let us simplify what this means for you and how you can proceed.
What Are These Excel Utilities?
The excel utilities are downloadable spreadsheets that help you fill your ITR forms offline. You can download the zip file from the Income Tax e-filing portal, fill in your details in the spreadsheet, and then upload it online. This method is useful if you are comfortable working in Excel or prefer preparing your tax return offline.
Currently, only the excel utilities for ITR-2 and ITR-3 are available. The online filing utility for these forms is yet to be launched.
Who Should Use ITR-2 and ITR-3?
- ITR-2 is ideal for NRIs who:
- Have capital gains from property, shares, or mutual funds
- Earn dividends or crypto income
- Have incomes from multiple sources except business/profession
- ITR-3 is for NRIs who:
- Have income from business or profession (including crypto trading as a business)
- Earn capital gains or other income along with business/profession income
The filing deadline for FY 2024-25 (AY 2025-26) is September 15, 2025.
Key Changes in ITR-2 and ITR-3 Utilities You Should Know
Both ITR-2 and ITR-3 forms have been updated this year. These changes are important if you have capital gains, crypto assets, or investments in India.
1. Capital Gains Reporting Simplified
- You now need to separately report gains made before and after July 23, 2024, due to changes in tax rates.
- This applies to gains from shares, mutual funds, property, and other capital assets.
2. Share Buybacks – Reporting Capital Loss Allowed
- If you face a capital loss on share buybacks after October 1, 2024, you can now report it and adjust against your gains, provided you report the related dividend income.
3. Higher Threshold for Asset and Liability Disclosure
- Earlier, anyone with income over ₹50 lakh had to report their assets and liabilities. This limit has now been raised to ₹1 crore.
- If your total income from Indian sources is below ₹1 crore, you do not need to report your assets and liabilities in the ITR.
4. Crypto Income Reporting
- Crypto transactions must be reported accurately in the capital gains schedule if they are investments.
- If you are trading in crypto like a business, use ITR-3.
5. Section 44BBC Introduced in ITR-3
- This is a new section for businesses in the cruise sector, now included in ITR-3.
6. Mandatory TDS Section Code Reporting
- You now need to specify under which section TDS was deducted on your income. This improves transparency and simplifies return processing.
Calculate & Claim Your TDS Refund in 2 Minutes
7. Enhanced Details for Deductions
- Whether claiming deductions under Section 80C (like LIC, PPF) or Section 10(13A) (House Rent Allowance), you will now need to submit more details, such as document proof, policy number, or lender information in case of home loan deductions.
Why This Matters for NRIs
NRIs often earn income from multiple sources in India – property sales, mutual fund investments, crypto, rent, or dividends. ITR-2 and ITR-3 are essential for accurately reporting such incomes.
Failing to report these properly can lead to notices from the tax department, delays in refunds, or even penalties.
Using the excel utility allows you to prepare your tax returns at your convenience, even from outside India.
What You Should Do Next
- Download the Excel Utility: Visit the official Income Tax e-filing portal and download the appropriate form (ITR-2 or ITR-3).
- Prepare Your Return: Fill in your details carefully. Pay special attention to capital gains, crypto transactions, and TDS details.
- Upload and File: Once filled, upload your ITR file on the e-filing portal and submit.
- E-Verify: Do not forget to e-verify your return within 30 days to complete the filing process.
Conclusion
For NRIs dealing with complex incomes, the release of ITR-2 and ITR-3 excel utilities marks the start of the tax filing season. Ensure you understand the new reporting rules and meet the filing deadline of September 15, 2025.
Still unsure about your ITR form or filing process? Speak to a tax expert who understands NRI taxation to avoid errors and missed deductions.
FAQs
1. Who should file ITR-2?
NRIs with income from capital gains (property, shares, mutual funds), crypto income, dividends, and other non-business sources should file ITR-2.
2. Who needs to file ITR-3?
NRIs having income from business or profession in India must file ITR-3. This includes those actively trading in crypto or shares as a business.
3. What is the last date to file ITR-2 and ITR-3 for FY 2024-25?
The last date to file your return is September 15, 2025.
4. Is online filing of ITR-2 and ITR-3 available?
Currently, only the excel utilities for ITR-2 and ITR-3 are released. The online filing facility is expected soon.
5. Do NRIs need to disclose foreign assets?
No. NRIs are required to disclose only Indian assets and liabilities if their total income exceeds ₹1 crore.
6. How is crypto income taxed for NRIs in India?
Crypto gains are taxed at 30% flat rate plus surcharge and cess, similar to resident Indians. NRIs must report crypto gains in the capital gains schedule (ITR-2) or under business income (ITR-3).
7. What happens if I miss the tax filing deadline?
If you miss the deadline, you may need to file a belated return and pay late fees under Section 234F. You also risk losing certain deductions and carrying forward losses.
