On July 30, the Income Tax Department has made an important announcement, which will provide relief to millions of taxpayers. Now the ITR-3 form can be filled online on the official website of income tax. Especially those who trading in the stock market (eg Futures and Options – F & O), do business, or invest in unlisted stocks, this form becomes mandatory for them.
For whom is ITR-3 form?
The ITR-3 form is for individuals and Hindu undivided families (HUFS) who are income from a business or profession. It is called a “Comprehensive Form” because many types of income can be reported at the same place.
ITR-3 are eligible for those who are:
Share from Share Trading (F&O) (speculative or non-spacious income)
Invest in unlisted equity shares
There are partners in a firm and share the profit
Get income from salary, pension, house property or other sources
Foreign property holds or receive income from abroad
Whose annual total income is more than ₹ 50 lakh
Those who are not eligible to fill ITR-1, ITR-2 or ITR-4
The main changes for FY 2024-25 in ITR-3:
Changes in capital gains reporting
It is now necessary to report separately and after July 23, 2024, short term and long-term capital gains.
Reporting loss on share buyback
If a company has suffered capital loss in the stock buyback, it has now been specially given the facility to depict it.
Changes in income limit
Now whose annual income is more than ₹ 1 crore, they will have to give detailed information about their assets and liabilities (liabilities). Earlier this limit was ₹ 50 lakh.
TDS section code reporting
It has become mandatory to fill the section code to be deducted in Schedule-TDS now.
Information of Tax Period Selection (Form 10-EEA)
Now the taxpayer will have to clarify that he had chosen the old or new tax regime last year, and which option has been chosen this year.
Information about indexation
If a real estate (eg land or building) is sold before 23 July 2024, its acquisition cost and improvement costs will have to be depicted separately.
New reporting line of dividend income
Now the company has become mandatory to depict dividend income from buyback under Section 2 (22) (F) in a separate line.
