Business News: The Income Tax Department has unveiled a new online system for filing ITR3, announced on July 30. From now on, taxpayers can log in to the official income tax website and submit the form digitally, making the entire process faster and far more convenient.
This update will particularly benefit:
- Stock market traders (including those in Futures & Options—F&O)
- Entrepreneurs and business owners
- Investors in unlisted shares such as NSE equities
Who should file ITR3?
The ITR3 form is aimed at individuals and HUFs (Hindu Undivided Families) who earn profits or incur losses from business or professional activities.
It is often referred to as a “master form,” as it enables taxpayers to report various income sources in a single return.
ITR3 applies to those who have:
- Income from share trading or F&O (speculative and nonspeculative)
- Holdings in unlisted equity shares
- Income earned as a partner in a firm
- Salary, pension, house property, or income from other avenues
- Foreign earnings or ownership of assets abroad
- Total income exceeding 50 lakh
- Cases where ITR1, ITR2, or ITR4 cannot be used
What’s new in ITR3 for FY 202425?
- Capital gain reporting split by date: Shortterm and longterm capital gains must now be reported separately for transactions made before and after July 23, 2024.
- Buyback loss can now be claimed: Losses from share buybacks can be offset if the related dividend income is declared under “Other Sources.”
- Higher reporting threshold for assets: Taxpayers will now need to disclose details of assets and liabilities only if their annual income crosses 1 crore (earlier limit: 50 lakh).
- TDS codes must be stated clearly: In ScheduleTDS, filers are now required to mention the specific section code linked to every TDS deduction.
- Declaration on tax regime choice: Using Form 10IEA, taxpayers must indicate whether they opted for the new tax regime in the previous year and clarify their choice for the current one.
- New indexation reporting rules: For property sold before July 23, 2024, the acquisition cost and improvement cost must be reported separately.
- Dividend income entry added: Dividends from company buybacks will now have to be reported under Section 2(22)(f) as a distinct item.
- Fresh section for buyback losses: A dedicated space has been introduced to record capital losses from share buybacks. major step toward simplifying compliance for those with multiple income sources, including market traders, business owners, and global investors. The new FY 202425 rules bring more clarity, accuracy, and transparency, making tax filing smoother than ever for complex cases.
