ITR 2025 / Filing income tax return has become easier, ITR 3 form can now be seen online

ITR 2025: This new feature will provide great relief to those who trade in the stock market (such as in Futures and Options – F&O), run a business, or invest in unlisted shares (like NSE shares). These taxpayers can now directly visit the official Income Tax Department website and file the ITR-3 form online.

Who is the ITR-3 Form for?

The ITR-3 form is meant for individuals and Hindu Undivided Families (HUFs) who have income or losses from business or profession. It is known as a “comprehensive” or “master form” because it allows reporting of various types of income in a single place.

Who Can File the ITR-3 Form?

The ITR-3 form is suitable for the following taxpayers:

• Income from share trading or F&O (speculative or non-speculative)

• Investment in unlisted equity shares

• Income as a partner in a firm

• Income from salary, pension, house property, or other sources

• Foreign income or foreign assets

• Total income exceeding ₹50 lakh

• Those who are not eligible to file ITR-1, ITR-2, or ITR-4

Key Changes in ITR-3 for Financial Year 2024-25:

The Income Tax Department has introduced several major changes in the ITR-3 form for FY 2024-25, as follows:

1. New Capital Gain Reporting
   Short-term and long-term capital gains must now be reported separately based on whether the transaction occurred before or after July 23, 2024.

2. Reporting Loss on Buyback
   If capital loss arises from share buyback and the corresponding dividend income is shown under "Other Sources," taxpayers can now claim such losses.

3. Change in Income Limit for Asset Disclosure
   If the total annual income exceeds ₹1 crore (earlier the limit was ₹50 lakh), detailed disclosure of assets and liabilities becomes mandatory.

4. Mandatory TDS Section Code
   In the Schedule-TDS, it is now compulsory to clearly specify the section code under which TDS was deducted.

5. Tax Regime Option (Form 10-IEA)
   Taxpayers must declare whether they had opted for the new tax regime in the previous year and which regime they are choosing for the current year.

6. Capital Gains Segregation
   Capital gains occurring before and after July 23, 2024, must be shown separately based on the exchange dates.

7. Indexation Details
   If land or buildings were sold before July 23, 2024, the cost of acquisition and cost of improvement must be reported separately. Also, if the income exceeds ₹1 crore, disclosure of assets and liabilities is mandatory.

8. New Line for Dividend Income
   Dividend income received from company buyback must now be reported separately under Section 2(22)(f).

9. Reporting Capital Loss on Buyback
   A new line has been added to allow taxpayers to report capital loss incurred due to company share buybacks.