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ITR-3 Filing Now Available Online for FY 2024-25

The Income Tax Department has enabled online filing for ITR-3, making it easier for taxpayers with incomes from share trading, businesses, professions, or investments in unlisted shares to file their returns on the official e-filing portal.

Who Should File ITR-3 for AY 2025-26?

Chartered Accountant Abhishek Soni explains that ITR-3 is meant for individuals or Hindu Undivided Families (HUFs) involved in business or professional activities. You should file ITR-3 if:

You’re a company director
You invested in unlisted equity shares
You have business or professional income
You earn from salary, pension, house property, capital gains, or foreign income
You are a partner in a firm
Your total income is over ₹50 lakh
You cannot file ITR-1, ITR-2, or ITR-4

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Key Changes in ITR-3 for AY 2025-26

The Income Tax Department has introduced several updates to the ITR-3 form:

Capital Gains Reporting: Gains must be split based on whether they occurred before or after July 23, 2024.
Share Buyback Losses: Capital loss from share buybacks is allowed if related dividend income is also declared.
Asset Reporting Limit Raised: Now required for income over ₹1 crore (earlier ₹50 lakh).
Cruise Business Income: Added under a new section 44BBC.
Improved Deduction Reporting: Especially under sections 80C and 10(13A).
TDS Reporting: Now includes section code in Schedule-TDS.

Important Updates in ITR-3 Excel Utility

CA Suresh Surana highlights seven major changes:

Tax Regime Choice (Form 10-IEA): Must state if you filed the form last year and whether you want to opt in or out of the new tax regime.
Detailed Capital Gains Reporting: Separate reporting for transactions before and after July 23, 2024.
Indexed Cost Split: Residents must report the acquisition and improvement cost of property sold before July 23, 2024.
Asset Disclosure Limit Increased: Mandatory if total income is over ₹1 crore.
Presumptive Income from Cruise Ships: Now reportable under section 44BBC.
Buyback Dividend Reporting: A new field to show income received from share buybacks under section 2(22)(f).
Loss from Share Buyback: Separate row to report these losses in Schedule CG, allowed only if related dividend income is declared.

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