New Delhi, July 30, 2025 — The Income Tax Department has enabled online submission of Income Tax Return Form ITR-3 for Assessment Year 2025–26. This move offers improved accessibility for individuals and Hindu Undivided Families (HUFs) with income from business or profession, share trading, partnerships, unlisted equity investments, foreign assets, and capital gains.
The updated form, available via the department’s e-filing portal, incorporates key legislative changes introduced under the Finance Act, 2024. These include revised capital gains tax rates—12.5% for long-term and 20% for short-term equity gains—effective for transactions after July 23, 2024. Filers must also distinguish between pre- and post-amendment capital gains, separately declaring acquisition and improvement costs for assets like land or buildings.
Taxpayers are required to disclose whether they opted for the new tax regime via Form 10-IEA last year, and reaffirm their choice for the current year. The threshold for asset and liability reporting has been increased from ₹50 lakh to ₹1 crore. Additional fields have been added for presumptive income from cruise businesses under Section 44BBC, and for declaring capital losses from buybacks under Section 68 of the Companies Act.
With enhanced reporting under Sections 80C and 10(13A), the streamlined process aims to simplify compliance for professionals, investors, and business owners navigating an increasingly complex tax landscape.
