The Income Tax Department has now started the facility of filling the ITR-3 form online, giving relief to taxpayers. This decision will directly benefit those who invested in the stock market trading (eg futures and options – F&O), business or unlike shares (such as shares of companies listed on NSE). Now all these taxpayers will be able to fill the ITR-3 online by visiting the e-filing website of the Income Tax Department.
For whom is ITR-3 form?
The ITR-3 form is also called the “Master Form” of the Income Tax Department as it can report income from different sources to the same place. It is mainly for individuals and Hindu undivided families (HUFS) whose income is from business profit or professional income.
People eligible to fill this form:
Stock market trading (F&O, speculative and non-speculative income)
Those who invest in unlisted equity shares
Income as partners in the firm
Income from salary, pension, house property or other sources
Income or foreign property from abroad
Whose total income is more than ₹ 50 lakh
Taxpayers who are not eligible to fill ITR-1, ITR-2 or ITR-4
Main changes in ITR-3 for FY 2024-25
Capital Gain’s new reporting
Now it is mandatory to report the short term and long-term capital gains separately before and after the dates after 23 July 2024.
Reporting loss on share buyback
If the share buyback is damaged and the respective dividend income is shown in “other sources”, such damage can be claimed.
Changes in income limit
Now if the total annual income of a taxpayer is more than ₹ 1 crore (earlier this limit was ₹ 50 lakh), then they will have to give full details of their assets and assets & liability.
TDS section code reporting
Now it will be necessary to write clearly in Schedule-TDS under which section the tax is deducted.
Tax Period Options (Form 10-EEA)
Taxpayers will have to tell whether they had chosen a new tax regime last year, and which option they want to adopt this year.
Information about indexation
If the land or building is sold before 23 July 2024, the acquisition cost and improvement costs will have to be told separately. At the same time, if the income is more than ₹ 1 crore, then the details of property and liabilities will also be mandatory.
New line of dividend income
Dividend income received from the company buyback will now have to be shown separately under Section 2 (22) (F).
Clarity in capital gains reporting
Prior to July 23, 2024, it has been made mandatory to enter transactions separately.
Taxpayers will get big benefit
With the facility of filling the ITR-3 form online, now taxpayers will not have to depend on manual filing or third-party portal. The form can be submitted by filling the necessary information by visiting the e-filing website of the Income Tax Department directly. Experts believe that this step will give taxpayers the benefit of time savings, transparency and easy tracking. Also, complex reporting of stock market and business income will also become more systematic and clear.
