August 20, 2025

Filing income tax returns can feel like a maze, especially if your earnings come from business or trading. For Assessment Year 2025-26 (financial year 2024-25), the Income Tax Department says: if you’re an individual or Hindu Undivided Family (HUF) making money from business, profession, or trading futures and options, you must use the ITR-3 form. This year, ITR-3 comes with some spicy new twists! Who should grab the ITR-3 form? Anyone earning from business or profession, partners in firms, or those with gains and losses from futures, options, or intraday trading. If you’re a company director, have unlisted shares, income from salary, house property, capital gains, or foreign income, and your total income can cross Rs 50 lakhs, ITR-3 fits the bill. The form even covers presumptive tax under the new Section 44BBC for cruise business income, added in the 2024 budget. Chartered accountant Abhishek Soni of Tax2Win explains, "ITR-3 is to be used by individuals or HUFs carrying on a business or profession." So, if your business income has complexities, ITR-3 is your go-to. Now, the sizzling updates! The Income Tax Department has set new rules that mix up how we report capital gains. You must now show if capital asset transfers happened before or after July 23, 2024 — this date influences your tax rates. Also, if you sold shares back after October 1, 2024, your capital loss can be allowed only if you declare dividend income from that buyback. Adding some cheer, the limit for reporting assets and liabilities rises to Rs 1 crore of total income. This eases the headache of reporting many small items. ITR-3 now also demands more details on deductions like Section 80C and 10(13A) and insists on reporting the correct TDS section codes. And watch out! The rules on declaring virtual digital assets have also widened, so crypto and digital traders better pay attention. Law expert SR Patnaik from Cyril Amarchand Mangaldas says, "The threshold for mandatory reporting of assets and liabilities has been increased to Rs 1 crore, easing compliance." He also highlights the need to specify capital gains dates and the new dividend income treatment on share buybacks as key changes in ITR-3. For those rushing to file, here’s a breather: the government extended the filing deadline from July 31, 2025, to September 15, 2025. Taxpayers needing audited accounts get time till October 31, 2025. So, whether you’re a seasoned trader, a business owner, or a partner in a firm, get ready to tackle these new ITR-3 rules with flair this tax season. Missing these details can mean trouble, so be sharp, report right, and meet the new deadlines!

Read More at Economictimes →

Tags: Itr-3, Income tax, Ay 2025-26, Tax filing, Capital gains, Digital assets,