The income tax department is likely to start return filing next week, according to experts.
The deadline to file ITR without audit is July 31, while audited cases have until October 31.
What’s new in ITR-3?
The new ITR-3 form introduces several updates:
Capital gains split: Taxpayers must now separately report gains before and after July 23, 2024, as per the Finance Act 2024.
Share buyback loss rule: From October 1, 2024, capital loss on listed share buyback is allowed only if related dividend income is shown under “Income from Other Sources.”
Higher reporting threshold: Only those with total income over ₹1 crore need to report assets and liabilities. Earlier, the threshold was ₹50 lakh.
Detailed deduction reporting: The form asks for more details under sections like 80C (investments) and 10(13A) (house rent allowance) to improve compliance.
TDS section code: Taxpayers must now mention the TDS section code (like 194A, 194H) in the Schedule-TDS for better tax credit tracking.
Who should use ITR-3?
ITR-3 is meant for individuals and Hindu Undivided Families (HUFs) earning from business or professional income.
This includes:
- Proprietors
- Freelancers and professionals such as doctors, lawyers, and consultants
- Partners in firms (except those earning only salary or interest from the firm)
Taxpayers with income from house property, capital gains, or other sources can also use ITR-3 if they have business or professional income.
