Online filing enabled for ITR-3 tax form

New Delhi

The Income Tax Department has enabled the online filing of ITR-3, making it easier for taxpayers with business income, share trading, and unlisted investments to file returns through the e-filing portal.

ITR-3 is meant for individuals and Hindu Undivided Families (HUFs) earning income from business or profession. It also applies to company directors, those holding unlisted equity shares, and those earning from salary, house property, capital gains, or foreign assets. This form is for people not eligible to use ITR-1, ITR-2, or ITR-4.

This year, the form asks taxpayers to confirm whether they filed Form 10-IEA in the previous year and whether they wish to continue or exit the new tax regime.

Due to updates in the capital gains tax rules, Schedule CG has been revised. Taxpayers must now separately report gains from sales made before and after July 23, 2024. The long-term capital gains (LTCG) tax has increased to 12.5%, while the short-term capital gains (STCG) tax on certain assets like equities is now 20%.

For property sales before July 23, 2024, resident taxpayers must provide separate details of the cost of acquisition and improvement to claim indexation benefits.

Those with a total income above ₹1 crore must now disclose assets and liabilities, except for those who already file Part A – Balance Sheet.

A new field also allows reporting of capital losses from buybacks under Section 68 of the Companies Act, 2013, ensuring improved transparency and tax compliance.