New ITR-3 form notified for income tax return filing for FY 2024-25: Here’s what’s new for taxpayers
Income Tax Return Filing FY 2024-25: The Income Tax Department has issued ITR form 3, applicable for individuals and HUFs earning income through business or professional activities. The announcement was made via X platform on Thursday night, confirming that ITR-3 for Assessment Year 2025-26 was officially notified on April 30.
What’s new in ITR-3?
A significant change includes the increase in the reporting threshold for assets and liabilities under ‘Schedule AL‘ from Rs 50 lakh to Rs 1 crore, providing relief to middle-income taxpayers through reduced disclosure requirements.
The ITR’s Schedule Capital Gains section now requires separate reporting of capital gains based on their occurrence, whether before or after July 23, 2024.
Following the Budget presentation on July 24, 2024, the administration proposed reducing long-term capital gains tax on property to 12.5 per cent without indexation benefits, down from the previous 20 per cent rate with indexation.
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The indexation benefit enables taxpayers to calculate property cost prices whilst accounting for inflation.
This revision allows individuals or HUFs who acquired properties before July 23, 2024, to choose between two options: either pay LTCG tax at 12.5 per cent without indexation or continue with the existing system of 20 per cent tax with indexation benefits.
AKM Global’s Partner-Tax, Sandeep Sehgal highlighted that the CBDT has implemented significant modifications to ITR Form 3 for Assessment Year 2025-26, simplifying the compliance process for individuals and Hindu Undivided Families earning income from business or professional activities.
“Dropdowns for deductions like Section 80C and section-wise TDS reporting have also been introduced, enhancing transparency, accuracy, and ease of filing. Overall, these changes reflect the CBDT’s ongoing efforts to promote ease of compliance, improve data accuracy, and align reporting with emerging policy developments,” Sehgal added.
On April 29, the authorities announced ITR forms 1 and 4 for assessment year 2025-26, simplifying the filing process for individuals with long-term capital gains up to Rs 1.25 lakh from listed equities.
The administration has incorporated alterations regarding deductions under sections 80C, 80GG and others, whilst introducing a dropdown menu in the utility for tax filers to choose from.
Additionally, taxpayers must now provide detailed section-wise information concerning their TDS deductions in the ITR.
