NEW DELHI: The Income Tax Department on Wednesday informed that it has enabled online filing of income tax return (ITR) form number 3 (ITR-3). Taxpayers who have business income, income from share trading (such as futures and options), or even investments in unlisted shares can now file ITR-3 through the e-filing ITR portal.
An individual or Hindu Undivided Family with a business or profession must use ITR-3. Company directors, those who invested in unlisted equity shares at any time during the financial year, along with income from other sources, partner income, salary or pension income, and house property income, can use this ITR form.
Taxpayers with income earned from capital gains or foreign assets, income classified as profits or gains from business or profession and those who are not eligible to file Form ITR-1 (Sahaj), ITR-2, or ITR-4 (Sugam) can use ITR-3.
Form ITR-3 now requires assessees to confirm whether Form 10-IEA was filed in AY 2024–25 (i.e., the preceding financial year), along with a declaration on whether they intend to continue with or opt out of the new tax regime for the current assessment year.
Due to the changes in capital gains tax rates, Schedule CG and other related Sections have been revised. Now, taxpayers have to report capital gains transactions separately for those done before and on or after July 23, 2024.
In the recent budget, long-term capital gains (LTCG) tax on all financial and non-financial assets has been revised to 12.5 per cent (up from 10 per cent for equities). Short-term capital gains (STCG) tax on some assets, like equities, is now 20 per cent (up from 15 per cent). All listed financial assets held for more than a year would be classified now as long-term assets.