- By Shreyansh Mangla
- Wed, 30 Jul 2025 06:43 PM (IST)
- Source:JND
Income Tax Return e-Filing Online: The Income Tax Department has activated the online facility to file ITR-3 on its e-filing portal for Assessment Year 2025–26 (Financial Year 2024–25). This ITR form is usable by both individuals and HUFs (Hindu Undivided Families) earning income from business, self-employment, share trading (including F&O) and investments in unlisted shares. Meanwhile, individuals and HUFs without income from business or profession are not eligible for ITR-3. This form is also not applicable for entities other than individuals or HUFs.
ITR-3 Filing: Who Can File ITR-3?
According to the Income Tax Department, the ITR-3 form can be used by an individual or a Hindu Undivided Family (HUF) that has earned income from businesses or self-employment. This includes audit and non-audit cases and other earnings like salary, pension, capital gains, and remuneration from a partnership firm. Those who can file ITR-3 include:
- Individuals with salary, property income or pension
- Investors in unlisted equity shares
- Those earning above Rs 50 lakh, also having business income.
- Partners in firms
- Residents and non-residents with multiple income sources
- Business professionals ineligible for ITR-1, ITR-2, or ITR-4
- Company directors
- Individuals with capital gains or foreign income
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ITR-3 Filing: Key Changes In ITR-3 For AY 2025-26
Schedule AL Threshold raised from Rs 50 lakh to Rs 1 crore: This means that if you are an individual or a Hindu Undivided Family (HUF) and you have to report your assets, then you need to do so only in cases where your assets' total value is more than Rs 1 crore.
Capital Gains Split Reporting: Due to new tax rules, especially regarding inflation adjustments, profits from selling assets must be reported separately for those made before and after July 23, 2024.
Dropdowns for deductions and detailed section-wise reporting: When you are claiming a tax deduction, the tax form now provides easy-to-use dropdown menus to select a specific deduction you are claiming. You also have to provide more detailed information for each of these specific deductions, such as under which specific section of the tax law you are claiming them.
Capital Gains Tax Update: If you have sold a house that you bought before July 23, 2024, and it was considered a long-term capital gain, you now have two choices for paying the tax: You can either pay 12.5% tax without adjusting for inflation (indexation) or you can pay 20% tax after adjusting the original cost of the house for inflation (indexation), which helps reduce your taxable gain.
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Reporting Your Tax Breaks (Deductions): One needs to provide much more specific details when claiming common tax breaks like those for certain savings schemes (e.g., Section 80C), education loan interest (Section 80E), or house rent allowance (Section 10(13A)). Through this, the aim is to better understand why one is reducing their taxable income.