The Income Tax Department has issued the ITR-3 form. This form is for those individuals and Hindu Undivided Families (HUF) who earn income from business or any professional activities.
This form will be used to file income tax return for the financial year 2024-25. The Income Tax Department had issued a notification in this regard on 30 April. According to this, many changes have been made in the ITR-3 form. Its purpose is to simplify the return filing process.
Amount limit increased under Schedule AL
The biggest change is related to increasing the limit of amount for reporting assets and liabilities under ‘Schedule AL’. Now information about assets and liabilities up to Rs 1 crore can be given under this. Earlier the limit for this was Rs 50 lakh. A large number of taxpayers will benefit from this change. They will now have to make less disclosure.
TDS on income above Rs 5 crore
The second change is in the case of TDS. E-commerce operators whose business income is more than Rs 5 crore will be charged 1% TDS under section 194Q. The third change is that now taxpayers will have to provide information about foreign income and assets in Schedule FA. Income Tax has also made a provision that if a taxpayer wants to use the old tax regime, he can do so. For this, he will have to fill Form 10-IEA. This will enable taxpayers to choose between the new and old regimes as per their benefit.
Schedule CG for Capital Gains details
The Income Tax Department has also introduced Schedule CG for providing information about capital gains. Apart from this, a new column has also been provided to provide information about Short Term Capital Gains (STCG) under Section 50. This is especially for depreciated capital. The Income Tax Department believes that this will make it easier for taxpayers to provide information about capital gains at the time of filing returns.
IT department wants to make the filing process easier
The IT department had issued ITR-1 and ITR-2 forms on 29 April. Taxpayers will be able to use them to file income tax returns for the financial year 2024-25. The department wants to simplify the process of filing income tax returns. For this, it keeps making necessary changes in the form.
