🧾 ITR-3 Form for FY 2024-25: Key Highlights and What Taxpayers Should Know

✅ What is ITR-3 and Who Can File It?

The Central Board of Direct Taxes (CBDT) has notified the new ITR-3 form for financial year 2024–25. This form is specifically for individuals and Hindu Undivided Families (HUFs) who earn income from business or professional activities.

Eligible filers include those with:

• Income from a proprietorship business
• Income from capital gains, such as sale of shares, property, or mutual funds
• Foreign income or foreign asset ownership
• Income from more than one house property
• Winnings from lotteries or horse races
• Carry-forward and set-off of capital or business losses

🔁 Key Changes Introduced in the ITR-3 Form

According to the CBDT and tax professionals, the ITR-3 has been simplified and updated with new features:

1. Capital Gains Segregation: Capital gains must now be reported separately for transactions before and after July 23, 2024, aligning with the Finance Act 2024.
2. Buyback Loss Reporting: From October 1, 2024, losses from share buybacks can be claimed only if the corresponding dividend is shown as “Income from Other Sources.”
3. Increased Asset Disclosure Threshold: Now, only taxpayers with income above ₹1 crore must disclose their assets and liabilities in Schedule AL. Previously, the limit was ₹50 lakh.
4. New Section 44BBC: This section applies to cruise business operators under a presumptive tax scheme.
5. TDS Code Reporting: Taxpayers must mention the TDS section code under which tax was deducted. This improves traceability and compliance.

📅 ITR Filing Deadlines

It’s crucial to file your ITR on time. The deadlines vary based on the type of taxpayer:

• July 31, 2025 – For those not requiring an audit
• October 31, 2025 – If audit is mandatory
• November 30, 2025 – If international transactions are involved
• December 31, 2025 – Final deadline for filing belated ITR

🔄 Opting Out of the New Tax Regime

Taxpayers who prefer the old tax regime must submit Form 10IEA while filing their ITR. However, be cautious—this switch can only be made once. After opting back into the new tax regime, switching again is not allowed.

📌 Summary

The updated ITR-3 form simplifies tax filing for business owners and professionals by raising thresholds and clarifying deduction requirements. Make sure to understand the new rules, verify your eligibility, and file your return before the due date to avoid penalties.