I-t Department Revises Itr-3 Form For Ay 2025-26; Check Key Details

The Income Tax Department of India has announced important amendments to nan Income Tax Return (ITR) Form 3 for nan appraisal twelvemonth 2025-26, effective from April 1, 2025. These changes person been elaborate successful Notification No. 41/2025, dated April 30, 2025. The modifications are portion of nan department's effort to streamline nan taxation filing process for individuals and Hindu Undivided Families (HUFs) pinch business aliases master income. Notably, nan revised shape introduces caller requirements for reporting, frankincense aiming to amended compliance nether nan Finance Act 2024.

The ITR-3 shape is designed for individuals and Hindu Undivided Families (HUFs) progressive successful businesses aliases professions that necessitate extended accounting documentation. It caters to individuals and HUFs pinch income from a sole proprietorship business aliases profession, specified arsenic accountants, doctors, consultants, lawyers, and others who gain income based connected realized profits.

Among nan cardinal amendments is nan preamble of a 1% Tax Deducted astatine Source (TDS) complaint nether Section 194Q, specifically for e-commerce operators whose business income exceeds Rs 5 crore. This measurement aligns pinch India's broader strategy to heighten taxation transparency and compliance. Additionally, nan revised shape mandates nan capturing of TDS specifications nether Section 194R for immoderate benefits aliases perquisites received. Another important update is nan request for taxpayers to study overseas assets and income successful Schedule FA. This alteration underscores nan government's attraction connected transparency successful cross-border financial transactions. 

The Income Tax Department has besides made provisions for taxpayers to opt for nan aged taxation authorities by filing Form-10-IEA, contempt nan caller taxation authorities being nan default since nan appraisal twelvemonth 2024-25. This gives taxpayers elasticity successful choosing their preferred taxation regime.

Furthermore, a rationalised holding play successful Schedule CG for superior gains reporting has been introduced, alongside a caller file to study Short-Term Capital Gains (STCG) nether Section 50, specifically related to depreciable assets. This intends to simplify nan superior gains reporting process for taxpayers, ensuring clarity and easiness of filing. 

To assistance taxpayers successful knowing and navigating these changes, nan Income Tax Department has released an explainer bid disposable connected its charismatic website. These resources are designed to supply broad guidance connected nan caller filing requirements and thief taxpayers comply pinch nan updated regulations effectively. The department's attraction connected providing further resources reflects its committedness to facilitating a smoother filing acquisition and enhancing payer consciousness astir nan amendments.

The amendments to ITR-3 are expected to supply a much system model for reporting various income streams, peculiarly for those progressive successful e-commerce and world transactions.

Published on: May 7, 2025 3:01 PM IST