IT department enables online filing of ITR-3

The Income Tax Department has officially enabled the online submission of Income Tax Return Form 3 (ITR-3). This development allows individuals with income from share trading—such as futures and options—business income, or investments in unlisted shares to now file ITR-3 directly through the e-filing portal. The tax department issued a public notice with this announcement.

ITR-3 is applicable to individuals and Hindu Undivided Families who earn income from profits and gains of business or profession.

Company directors, those who invested in unlisted equity shares at any time during the financial year, along with income from other sources, partner income, salary or pension income, and house property income, can use this ITR form.

Taxpayers with income earned from capital gains or foreign assets, income classified as profits or gains from business or profession, and those who are not eligible to file Form ITR-1 (Sahaj), ITR-2, or ITR-4 (Sugam) can use ITR-3.

Form ITR-3 now requires assesses to confirm whether Form 10-IEA was filed in AY 2024–25 (ie, the preceding financial year), along with a declaration on whether they intend to continue with or opt out of the new tax regime for the current assessment year.

Due to the changes in capital gains tax rates, Schedule CG and other related Sections have been revised. Owing to this, taxpayers have to report capital gains transactions separately for those done before and on or after July 23, 2024.