ITR-3 form is now live: Check who is eligible and key changes

The taxpayers now need to separately show gains from assets made before and after July 23, 2024.

The Income Tax department on July 30 announced that the income tax return (ITR) form-3 is now open for online filing through its e-filing portal. So far, only the offline route was available to submit this income tax return form.

“Kind Attention Taxpayers! Income Tax Return Form of ITR-3 is now enabled for filing through online mode.”, the I-T department said in a post on X.

Taxpayers, who fall under ITR-3 category such as those earning from futures and options trading, can now file their returns before the September 15 deadline.

Who needs to pick ITR-3 to file their tax?

ITR-3, notified by the CBDT for individuals and Hindu Undivided Families (HUFs), is for those who earn from “profits and gains of business or profession” and ineligible for ITR-1, 2 and 4.

Moreover, if you have incomes speculative sources such as futures and options trading, currency or commodity trading, intraday trading, capital gains and foreign assets. Those with incomes from more than one house property are also eligible for this form.

Further, if the taxpayer has chosen presumptive taxation or wants to declare lower profits under section 44AD, section 44ADA or section 44AE.

Changes in ITR-3 form

Equity mutual funds and listed shares sold on or after July 23, 2024 will have higher LTCG and STCG rates of 12.5 percent and 20 percent, respectively. However, if sold before the specified date, the gains will be taxed at the older rates of 10 percent and 15 percent, respectively.

The taxpayers now need to separately show gains from assets made before and after July 23, 2024.

The tax filing deadline is September 15 for non-audit cases. For those with audit requirements, the last date is October 31 with the audit report deadline of September 30.