The Income Tax Department has announced that the ITR-3 form is now available on the e-filing portal. Taxpayers who were waiting for this form can now file their returns online.
Earlier, only the offline utility was available. This year, the last date to file income tax returns using this form is 15 September, which is later than the usual 31 July deadline.
Who Can Use ITR-3?
The Income Tax Department posted on X (formerly Twitter), “Taxpayers attention! ITR-3 form is now available for online filing.”
The form is meant for individuals and Hindu Undivided Families (HUFs) who earn income from a business or profession. This includes firm partners, doctors, lawyers, and consultants.
When Is ITR-3 Required?
If a taxpayer earns income from activities like Futures and Options (F&O) trading, intra-day stock trading, or currency and commodity trading, they need to file using ITR-3. This form must also be used by those who:
Own more than one house
Have capital gains
Possess foreign assets
Have business income
Additionally, if someone uses presumptive taxation but their income crosses the set limit, or they want to declare profits below the threshold under Sections 44AD, 44ADA, or 44AE, they must use ITR-3.
New Capital Gains Tax Rules Apply
Taxpayers must follow the new rules for capital gains tax that came into effect on July 23, 2024.
If shares or equity mutual fund units are sold within 12 months, they are now treated as short-term capital gains, taxed at 20%.
If sold after 12 months, it counts as long-term capital gains, taxed at 12.5%.
However, for gains made before July 23, 2024, the older tax rates apply:
Short-term gains taxed at 15%
Long-term gains taxed at 10%
