Latest news with #ITRForm3
&w=3840&q=100)
Business Standard
05-05-2025
- Business
- Business Standard
ITR-3 updated: What biz owners, professionals must know for FY25 tax filing
If you're an individual or part of a Hindu Undivided Family (HUF) earning income from a business or profession, it's time to get familiar with the newly notified ITR-3 form for Assessment Year 2025–26. The Income Tax Department has made key changes to the form, aiming to simplify tax filing and reduce unnecessary disclosures—especially for middle-income taxpayers. Here's what you need to know if you fall in this category. What's New in ITR Form 3 (AY 2025–26)? Who should file it? ITR-3 is meant for individuals and Hindu Undivided Families (HUFs) who earn income from business or profession. Those not eligible to file simpler forms like ITR-1 or ITR-4 If you're a freelancer, doctor, lawyer, consultant, or have any kind of business income, this form is for you. Key Changes and Highlights: Increased Threshold for Asset & Liability Disclosure: Earlier, you had to report assets and liabilities if your total income exceeded Rs 50 lakh. Now, the threshold has been increased to Rs 1 crore, reducing the disclosure burden for many middle-income taxpayers. What this means for you? Relief for Middle-Income Taxpayers: You no longer need to report your assets and liabilities in Schedule AL unless your total income exceeds Rs 1 crore (previously ₹50 lakh).This significantly reduces paperwork for professionals and business owners in the middle-income bracket. Split Reporting of Capital Gains: If you sold real estate or any other long-term capital asset, you now need to separately report gains made before and after July 23, 2024. This change reflects the Budget 2024 update, which introduced: A 12.5% LTCG tax without indexation (for sales after July 23) OR, the traditional 20% LTCG tax with indexation Taxpayers who purchased real estate before July 23, 2024, can choose the option that benefits them the most. This gives more flexibility to taxpayers based on when they bought/sold the property. Ease of Deductions: Dropdown menus for deductions like Section 80C, 80GG, and others have been added. This makes it easier and more transparent when claiming deductions. Section-Wise TDS Reporting: Taxpayers now have to report Tax Deducted at Source (TDS) in more detail, section by section, improving clarity for both the filer and the tax department. Why these changes matter: According to Sandeep Sehgal, Partner – Tax at AKM Global: 'These updates simplify compliance for business owners and professionals. Dropdowns for deductions and section-wise TDS reporting enhance transparency and accuracy.' The changes are also aligned with efforts to make tax filing more user-friendly, and better synced with emerging tax policies like the new LTCG structure. Budget 2024 Impact: What you should keep in mind Selling real estate? You now have a choice: pay lower tax (12.5%) without indexation, or claim inflation-adjusted costs and pay 20%. Gains before July 23, 2024, still fall under the old regime. Make sure to keep sale documents, cost details, and timelines handy for accurate reporting. For professionals, freelancers, and small business owners, the new ITR-3 form brings: Less disclosure if your income is below Rs 1 crore More clarity and control over capital gains tax Streamlined deduction claims But it also comes with new reporting responsibilities, especially for capital gains and TDS. As the filing window for FY 2024–25 (AY 2025–26) opens, it's wise to get organized early. Keep your income records, expense proofs, investment documents, and capital asset sale details ready—and consult a tax advisor if you're unsure which LTCG option suits you best. With inputs from PTI
Time of India
02-05-2025
- Business
- Time of India
New ITR-3 form notified for income tax return filing for FY 2024-25: Here's what's new for taxpayers
: The has issued , applicable for individuals and HUFs earning income through business or professional activities. The announcement was made via X platform on Thursday night, confirming that ITR-3 for Assessment Year 2025-26 was officially notified on April 30. Tired of too many ads? go ad free now What's new in ITR-3? A significant change includes the increase in the reporting threshold for assets and liabilities under ' ' from Rs 50 lakh to Rs 1 crore, providing relief to middle-income taxpayers through reduced disclosure requirements. The ITR's Schedule Capital Gains section now requires separate reporting of capital gains based on their occurrence, whether before or after July 23, 2024. Following the Budget presentation on July 24, 2024, the administration proposed reducing on property to 12.5 per cent without indexation benefits, down from the previous 20 per cent rate with indexation. Also Read | The indexation benefit enables taxpayers to calculate property cost prices whilst accounting for inflation. This revision allows individuals or HUFs who acquired properties before July 23, 2024, to choose between two options: either pay LTCG tax at 12.5 per cent without indexation or continue with the existing system of 20 per cent tax with indexation benefits. AKM Global's Partner-Tax, Sandeep Sehgal highlighted that the CBDT has implemented significant modifications to ITR Form 3 for Assessment Year 2025-26, simplifying the compliance process for individuals and Hindu Undivided Families earning income from business or professional activities. "Dropdowns for deductions like Section 80C and section-wise TDS reporting have also been introduced, enhancing transparency, accuracy, and ease of filing. Overall, these changes reflect the CBDT's ongoing efforts to promote ease of compliance, improve data accuracy, and align reporting with emerging policy developments," Sehgal added. On April 29, the authorities announced ITR forms 1 and 4 for assessment year 2025-26, simplifying the filing process for individuals with long-term capital gains up to Rs 1.25 lakh from listed equities. Tired of too many ads? go ad free now The administration has incorporated alterations regarding deductions under sections 80C, 80GG and others, whilst introducing a dropdown menu in the utility for tax filers to choose from. Additionally, taxpayers must now provide detailed section-wise information concerning their TDS deductions in the ITR.
