Has the Income Tax Department Made Online Filing of ITR-3 Easier?
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Synopsis
The Income Tax Department has introduced online filing for ITR-3, simplifying the process for taxpayers with business income and investments. This change allows for greater ease in filing returns and complying with the recent tax revisions.
Key Takeaways
- Online filing of ITR-3 is now available for eligible taxpayers.
- Changes in capital gains tax rates have been implemented.
- Taxpayers with income over Rs 1 crore need to disclose their assets.
- New reporting requirements for capital losses from share buybacks.
- Important for taxpayers to stay updated on tax regulations.
New Delhi, July 30 (NationPress) - On Wednesday, the Income Tax Department announced that the online filing of income tax return (ITR) form number 3 (ITR-3) is now available. Taxpayers with business income, earnings from share trading (including futures and options), or investments in unlisted shares can conveniently submit their ITR-3 through the e-filing ITR portal.
An individual or Hindu Undivided Family engaged in a business or profession is required to use ITR-3. This includes company directors, those who have invested in unlisted equity shares during the financial year, as well as income derived from additional sources such as partnership income, salary or pension income, and income from house property.
Taxpayers earning income from capital gains or foreign assets, as well as profits from business or profession, and those who do not qualify to file Form ITR-1 (Sahaj), ITR-2, or ITR-4 (Sugam) are eligible to use ITR-3.
The updated Form ITR-3 mandates assessees to confirm whether they filed Form 10-IEA in AY 2024–25 (the preceding financial year) and to declare their intention to either continue or withdraw from the new tax regime for the current assessment year.
In light of recent changes in capital gains tax rates, Schedule CG and related sections have undergone revisions. Taxpayers must report capital gains transactions distinctly for those conducted before and on or after July 23, 2024.
The recent budget has revised the long-term capital gains (LTCG) tax on all financial and non-financial assets to 12.5% (up from 10% for equities). The short-term capital gains (STCG) tax for certain assets, such as equities, is now 20% (previously 15%). All listed financial assets held for longer than a year are now categorized as long-term assets.
To apply for indexation benefits, resident taxpayers must separately provide details regarding the cost of acquisition and improvements for any land or building transferred prior to July 23, 2024.
Taxpayers whose total income exceeds Rs 1 crore (increased from Rs 50 lakh) are now required to disclose their assets and liabilities at the end of the financial year, excluding those already included under Part A – Balance Sheet.
The new form includes a dedicated row in Schedule CG for reporting capital losses stemming from companies repurchasing shares from shareholders, as specified under Section 68 of the Companies Act, 2013.
Point of View
I believe this initiative by the Income Tax Department is a significant step towards making tax compliance more accessible for taxpayers. The online filing of ITR-3 will facilitate smoother transactions and ensure that taxpayers can efficiently manage their responsibilities in a rapidly changing economic environment.
NationPress
30/07/2025
Frequently Asked Questions
Who can file ITR-3?
ITR-3 is designed for individuals or Hindu Undivided Families with business income, share trading income, or investments in unlisted shares.
What are the recent changes in capital gains tax rates?
The long-term capital gains tax has been revised to 12.5%, while short-term capital gains tax for certain assets has increased to 20%.
Is there a new requirement for taxpayers with income over Rs 1 crore?
Yes, taxpayers with an income exceeding Rs 1 crore must disclose their assets and liabilities at the end of the financial year.
What is the deadline for filing ITR-3?
The deadline typically aligns with the end of the financial year, but specific dates may vary each year.
Where can I file ITR-3 online?
You can file ITR-3 through the Income Tax Department's e-filing portal.
