Notice new ITR-3 form for income tax return filing for FY 2024-25: What is new for taxpayers here
Income Tax Returns FY 2024-25: Income tax department has issued ITR Form 3, which is applicable to individuals and HUFs, earning income through business or professional activities. The announcement was made through the X platform on Thursday night, confirming that the ITR -3 for the assessment year 2025–26 was officially reported on 30 April.
What is new in ITR-3?
A significant change involves an increase in the reporting limit for assets and liabilities from Rs 50 lakh to Rs 1 crore under the ‘Schedule Al’, which provides relief to medium -income taxpayers through low disclosure requirements.
The Schedule Capital Gains section of ITR now requires separate reporting of capital gains based on their incident, whether it is before or after July 23, 2024.
After the budget presentation on July 24, 2024, the administration proposed to reduce long -term capital gains on property without indexed profit, below the rate of last 20 percent with indexation.
Also read ITR filing FY 2024-25: The new ITR-1 form notified with major changes-what taxpayers should know here
Index Benefits enables taxpayers to calculate property cost prices during accounting for inflation.
This amendment allows individuals or HUFs who acquired properties before July 23, 2024, to choose between two options: Either pay LTCG tax at 12.5 percent without indexing or continue with the existing system of 20 percent tax with index benefits.
AKM Global’s partner-tax, Sandeep Sehgal highlighted that CBDT has implemented significant amendments for the assessment year 2025-26 in ITR Form 3, which simplify the compliance process for individuals and undivided families for undivided families earning income from business or professional activities.
“Dropdowns have also been introduced for cuts such as Section 80C and section-wise TDS reporting, extending transparency, accuracy and ease of filing. Overall, these changes, promoting compliance with CBDT, improving data accuracy and ongoing efforts to align reporting with emerging policy development.”
On 29 April, the authorities announced the ITR Form 1 and 4 for evaluation of the assessment year 2025-26, simplifying the filing process for persons with long-term capital gains up to Rs 1.25 lakh from listed equity.
The administration has included changes about cuts under section 80C, 80GG and others, while for tax filers have introduced a dropdown menu to start a dropdown menu in utility.
Additionally, taxpayers should now provide detailed section-wise information related to their TDS deduction in ITR.
