logo
#

Latest news with #HinduUndividedFamilies

ITR-3 filing open: who can file, how to file, key rules for AY 2025-26
ITR-3 filing open: who can file, how to file, key rules for AY 2025-26

Hindustan Times

time16 hours ago

  • Business
  • Hindustan Times

ITR-3 filing open: who can file, how to file, key rules for AY 2025-26

The Income Tax Department has activated the option to file ITR-3 online for the Assessment Year 2025-26 (Financial Year 2024-25). This is now available on the department's e-filing website. ITR-3 filing announcement was made on 30 July 2025 through a public notice, and is now is now available on the department's e-filing website.(Pexels) The announcement was made on Wednesday, July 30, through a public notice that said, "Kind Attention Taxpayers! Income Tax Return Form of ITR-3 is now enabled for filing through online mode." Who can file ITR-3 ? ITR-3 applies to individuals and Hindu Undivided Families (HUFs) who earn income from: • Running a business or profession • Share trading, including futures and options • Being a partner in a firm • Investing in unlisted equity shares • Earning capital gains or income from abroad • Having income from more than one source, such as salary, property, pension, and business • Having total income above ₹50 lakh and also business income • Being a company director This form is not for companies, LLPs, or firms. It is meant only for individuals and HUFs with business or professional income. Also Read: ITR filing 2025 last date extended | All you need to know How to file ITR-3 ? A taxpayer must file ITR 3 online. It can be done in the following ways: • File the return using a digital signature • Submit the return online and then send the signed ITR V form as verification If you file it using a digital signature, the acknowledgement will be sent to your registered email address. You can also download the ITR V form from the income tax website, sign it, and post it to the Income Tax Department's CPC office in Bangalore. It must reach them within 30 days of filing, according to Cleartax report. Also Read: ITR filing 2025: What happens if you miss filing return before deadline? Key updates in ITR-3 for AY 2025-26 Some major changes highlighted by tax experts while filing this year's ITR-3 include: • Mandatory confirmation for the new tax regime using Form 10-IEA • Capital gains to be reported separately for periods before and after 23 July 2024 • Resident taxpayers need to give separate indexation details • Assets and liabilities must be reported if their total value is ₹1 crore or more • A new section, 44BBC, applies to cruise operators • Dividend income has to be reported in detail • Capital loss from share buybacks has to be shown separately The deadline to file ITR-3 without late fees is expected to follow the regular due dates, unless extended.

ITR-3 enabled for e-filing: Income Tax form covers business and professional income earners, directors, and traders— key things to know before filing for AY 2025–26
ITR-3 enabled for e-filing: Income Tax form covers business and professional income earners, directors, and traders— key things to know before filing for AY 2025–26

Time of India

timea day ago

  • Business
  • Time of India

ITR-3 enabled for e-filing: Income Tax form covers business and professional income earners, directors, and traders— key things to know before filing for AY 2025–26

AI-generated image The Income Tax Department has enabled online filing for ITR-3 on its e-filing portal for Assessment Year 2025–26 (Financial Year 2024–25), easing return submissions for individuals with income from share trading (including F&O), business ventures, and investments in unlisted shares. The department announced on July 30, 2025: "Kind Attention Taxpayers! Income Tax Return Form of ITR-3 is now enabled for filing through online mode." Who should file ITR-3 According to Central board for direct Taxes (CBDT) ITR-3 is meant for individuals or Hindu Undivided Families (HUFs) who earn income from business or professional activities. Thus, ITR-3 is filed by those having Business income and are: Company directors Investors in unlisted equity shares Individuals with capital gains or foreign income Partners in firms Those earning above Rs 50 lakh, also having business income. Residents and non-residents with multiple income sources Individuals with salary, property income, or pension Business professionals ineligible for ITR-1, ITR-2, or ITR-4 Key updates in ITR-3 for AY 2025–26 A CA quoted by ET listed out few major changes to note while filing ITR-3 for AY 2025-26. they are- Mandatory selection for Form 10-IEA (new tax regime confirmation) Revised capital gains reporting , including split disclosures for gains pre- and post-July 23, 2024 Separate indexation disclosures for resident taxpayers Higher reporting threshold for assets and liabilities (Rs 1 crore and above) Inclusion of Section 44BBC (applicable to cruise operations) Detailed reporting of dividend income Specific treatment of capital loss on share buybacks Additionally, filers must now provide more granular disclosures on TDS sections and deductions. Stay informed with the latest business news, updates on bank holidays and public holidays . Discover stories of India's leading eco-innovators at Ecopreneur Honours 2025

Selling your house? Here's how you can save lakhs in taxes
Selling your house? Here's how you can save lakhs in taxes

India Today

time2 days ago

  • Business
  • India Today

Selling your house? Here's how you can save lakhs in taxes

If you are planning to sell a residential property, you might be worried about the tax you will have to pay on the profit earned. But there's a legal way to save a large part of this tax if you reinvest the money in the right per tax expert CA (Dr.) Suresh Surana, provisions under Section 54 and Section 54F of the Income Tax Act can help individuals and Hindu Undivided Families (HUFs) reduce or even avoid paying long-term capital gains tax, provided certain conditions are a simple breakdown of how these exemptions BENEFITS UNDER SECTION 54 Section 54 of the Income Tax Act allows exemption on long-term capital gains earned from the sale of a residential house or plot of land if the profit is reinvested in buying or constructing a new residential property in taxpayer must invest in the new property within 1 year before or 2 years after the sale of the old property. If the new house is being constructed instead of purchased, it must be completed within 3 years of the date of sale.'This exemption can only be claimed for one residential property. However, if the capital gain is up to Rs 2 crore, the taxpayer has a one-time option to invest in two residential properties,' said Dr. there's a lock-in period: the new house must not be sold within 3 years. If the new property is sold before this period ends, the tax exemption will be cancelled and the earlier benefit will be added to your income for that exemption amount under Section 54 will be the lower of:The capital gains from the sale, orThe amount actually invested in the new house (including any amount deposited in the Capital Gains Deposit Account Scheme)From April 2023, there is a limit on how much of the new property cost can be considered for exemption. 'The investment in the new house will be capped at Rs 10 crore for claiming tax relief under Section 54,' added Dr. BENEFITS UNDER SECTION 54FIf you are selling a long-term capital asset other than a residential house, such as shares, land, or commercial property, you can still claim a tax break by investing the net sale amount into a residential house. This benefit comes under Section 54F of the Income Tax Surana explained, 'To get this exemption, the individual must not own more than one residential house at the time of the original sale, and should not buy or construct any other house within 2 to 3 years.'advertisementLike in Section 54, the new house should be bought within 1 year before or 2 years after the sale, or constructed within 3 the newly bought house should not be sold within 3 years, or else the earlier tax exemption will be exemption is calculated proportionately using this formula:Capital Gains (Amount Invested in New Property Net Sale Consideration)If the entire net sale amount is invested in a new house, then full exemption can be claimed. If only a part is invested, the exemption will be this section also comes with a cap. 'If the cost of the new property exceeds Rs 10 crore, the amount above Rs 10 crore will not be considered for the exemption calculation,' said Dr. TO REMEMBERYou must complete the investment within the timelines given, either before or after the property all records and proofs of payment, agreements, and registrations to claim the exemption during tax you are unable to invest before the tax filing due date, you can deposit the amount in a Capital Gains Account under a government-run scheme to keep the tax benefit Surana added that while both sections help taxpayers save on capital gains tax, it is important to evaluate your eligibility and make sure all conditions are followed. 'Planning the reinvestment carefully and keeping within the limits will help save lakhs in taxes legally,' he many home sellers, using Sections 54 and 54F can make a big difference in how much tax they pay. But the benefits are only available if the rules are followed properly. If you're unsure, it's always best to take the help of a tax professional.(This article is for general informational purposes only and does not constitute financial advice. Readers are encouraged to consult a certified financial advisor before making any investment or financial decisions. The views expressed are independent and do not reflect the official position of the India Today Group.)- Ends

What is clubbing provision in Income Tax Act? When is it applicable?
What is clubbing provision in Income Tax Act? When is it applicable?

Time of India

time3 days ago

  • Business
  • Time of India

What is clubbing provision in Income Tax Act? When is it applicable?

What is clubbing of income? Clubbing provisions When is clubbing not applicable? If money or assets are transferred to wife or daughterin-law before marriage. If any gifts are received at the time of marriage. The income from these are also not clubbed for the transferor. If one stays with parents and gives them rent, or offers a monetary gift, or if they invest this amount, it will not invite clubbing provisions. If money is invested in the PPF for spouse or child. If money is saved by wife from the household expense funds given by the husband. As the term suggests, clubbing means combining the income of another person with one's own for tax calculation purposes. However, many people club the incomes of their family members and close relatives in order to evade tax or minimise their tax liabilities. To prevent tax evasion and encourage compliance, the government has laid down rules for clubbing of incomes under Sections 60-64 of the Income Tax Act , rules, or clubbing provisions, specify the types of incomes, relationships and circumstances under which incomes can be clubbed for tax benefits. So, not all relationships or money transfers qualify for clubbing provisions. Spouses, children, daughters-inlaw, Hindu Undivided Families, and specific close relatives typically invite these provisions. For instance, if a parent invests in a fixed deposit (FD) in his child's name, clubbing provisions apply and the interest generated from this FD is clubbed with the income of the parent who earns more. However, the parent can avail of `1,500 per child tax deduction under the old tax regime . Besides, clubbing provisions won't apply if a minor child earns an income through manual work, or by using his own skill and talent, or if he suffers from a incomes that are considered for clubbing can be from various sources and investment avenues like property, interest, mutual funds and bank deposits, among others. Since the taxable income increases after clubbing, it also impacts the ITR form that is chosen to file tax provisions among relatives and family members don't apply under these specific conditions.

Ask us on Investments
Ask us on Investments

The Hindu

time3 days ago

  • Business
  • The Hindu

Ask us on Investments

Q I am a retired bank officer aged 70. I have a health insurance policy with a coverage of ₹4 lakh under a special scheme of IBA (Indian Bankers Association). The maximum coverage for family is ₹4 lakh under the scheme. Top-up to a maximum of ₹5 lakh is available. I want to have a coverage of minimum ₹20 lakh for me and my wife. Kindly advise. M. Gopinathan A The policy, which you have currently, might be a group health insurance policy designed for retired bank staff. The policy might not be customisable or might be subject to negotiations between IBA and unions. Against this backdrop, it is advisable to take a separate individual health policy, in addition to your bank policy, with a basic coverage (Sum Insured) of ₹5 lakh. If you cannot afford this additional individual base policy, you can go with your bank policy itself. But, having a individual health policy has more benefits. For a coverage of up to ₹20 lakh, you can buy a super-top up health insurance policy, with a deductible of ₹5 lakh, if you purchase an individual base policy for this amount. If you prefer to use only the bank policy, then your deductible amount for the super top-up policy must be ₹4 lakh only. There are two top-up policies available in the market viz. top-up and super top-up. Both are completely different. For a complete understanding about the difference between the two policies, you can refer to the Moneywise article titled 'Top-up vs. super top-up' dated March 17, 2025. The premium cost for the super-top up health insurance policy is costly when compared with the top-up policy. Still, for your age, it is advisable to buy the super top-up policy to avail maximum benefits. Most health insurance companies offer both the policies, but you need to be careful to check whether you are really buying the super top-up policy. You can also buy an individual health insurance base policy with the Sum Insured of ₹20 lakh but that is highly expensive, and we would not suggest it. Q I am 73 years old. I want to sell my 4-cent land purchased in 2007. What will be my tax liability under the Income Tax Act. Sivanandan A In the Union Budget 2024-2025, presented on July 23, 2024, Union Finance Minister Nirmala Sitharaman said long-term capital gains on all financial- and non-financial assets will attract a tax rate of 12.5%. However, in her Budget speech, she did not explicitly mention that the reduced 12.5% (from the earlier 20%) tax rate on LTCGs is without the indexation benefit. Later, on August 7, 2024, the Finance Bill 2024 was passed in the Lok Sabha with an amendment that gave a relaxation to the new capital gains tax on real estate. The amendment was introduced after widespread criticism from various corners, including Opposition parties and tax professionals. As per the amendment, individuals or Hindu Undivided Families (HUFs) who purchased houses or other immovable property before July 23, 2024, have two options regarding the treatment of long-term capital gains and they can choose any one option that is suitable for them. First option is they can choose to pay straight 12.5% tax on the capital gains without claiming the indexation benefit. Or the second option is that they can choose to pay 20% tax on capital gains, after claiming the indexation benefit. Further, according to the Income Tax Act and as per the Union Budget 2024-25, if you have owned an immovable property (land) for more than two years (24 months), then it is considered a long-term asset. In your case, you have purchased the land in 2007 and therefore, if you earn capital gains by selling the land, it will be considered Long Term Capital Gain (LTCG). Since you have purchased before the July 23, 2024 window, you can choose any one of the tax rates – 12.5% on capital gains without indexation or 20% on capital gains with indexation benefit. The choice is yours. (The writer is an NISM & CRISIL-certified wealth manager)

DOWNLOAD THE APP

Get Started Now: Download the App

Ready to dive into a world of global content with local flavor? Download Daily8 app today from your preferred app store and start exploring.
app-storeplay-store