🧾 New ITR-3 Form Notified for FY 2024-25: What Taxpayers Should Know
🔹1. Higher Threshold for Reporting Assets and Liabilities
Old Rule: Till now taxpayers were to furnish relevant particulars about his assets (property, gold, vehicles) and liabilities (loans) in case the annual income exceeded ₹50 lakh.
New Rule: the limit has been raised to Rs 1 crore. So, now you don't have to disclose these details if your returns are below Rs 1 crore.
Why this matters: This change reduces the reporting burden on middle-income professionals and businesses, making return filing easier for them.
🔹2. Capital Gains Reporting – Based on New Tax Option
A new requirement has been added for people who earn from capital
gains (profit from selling property, shares, etc.).
If you sold a real estate property after 23rd July 2024,
and you choose the new tax option (pay 12.5% tax without indexation), you must
now separately mention whether the gain happened before or after this
date.
Indexation means adjusting the purchase price for
inflation, which lowers the tax liability. The government is offering a flat
12.5% tax rate without this benefit, and it’s optional.
Or say, Option for Long-Term Capital Gains (LTCG) Tax on
Property
For properties acquired before July 23, 2024, taxpayers can
choose between:
- Paying LTCG tax at 12.5% without indexation benefits, or
- Continuing with the existing system of 20% tax with indexation benefits.
Indexation allows taxpayers to adjust the property's
purchase price for inflation, potentially reducing taxable gains.
Why this matters: It helps the tax department clearly know which method you chose and calculate tax accordingly.
🔹3. Easier Selection of Deductions (Like 80C)
In the new ITR-3, you will now see dropdown menus to
choose deductions under various sections like Section 80C (for LIC, PPF,
tuition fees, etc.), 80D (for health insurance), and others.
Why this matters: This reduces the chance of errors or incorrect section entries and helps taxpayers easily select the right deduction category while filing.
🔹4. New Deduction under Section 80CCH – Agnipath Scheme
A new section has been added for those who joined the Agnipath
military recruitment scheme on or after 1st November 2022.
Under Section 80CCH, the amount you invest in the Agniveer
Corpus Fund (a retirement-like fund) can be claimed as a deduction,
reducing your taxable income.
Why this matters: This ensures that Agniveers can claim their rightful tax benefits.
🔹5. Section 80U – For Taxpayers with Disabilities
Now, a separate section is available in the form to
help individuals with disabilities claim benefits under Section 80U.
You’ll need to provide:
- The nature of your disability
- A certificate from a medical authority
- The percentage of disability (at least 40%)
Why this matters: Earlier, this was confusing for many taxpayers. The new format makes it clear and simple to claim this important benefit.
🔹6. Virtual Digital Assets (VDAs) – Crypto & NFT Reporting
If you have bought or sold cryptocurrencies, NFTs, or
other digital assets, you must now report:
- Date
of purchase
- Date
of sale
- Cost
of acquisition
- Sale
value
- Income
from transfer
Why this matters: The government has started taxing VDAs since 2022. Now, they are making the reporting more detailed and structured to ensure proper tax collection and reduce fraud.
🔹7. LEI Number for Large Refund Claims
The Legal Entity Identifier (LEI) will soon be mandatory while claiming income tax refunds of ₹50 crore and above.
This is a 20-character globally unique code for identifying huge companies and other large financial institutions.
You must also mention the validity date of the LEI.
Why this matters: This increases security and verification for large financial transactions and helps track high-value refunds.
🔹8. Presumptive Income – Revised Turnover Limits for Cash Transactions
Under Section 44AD and 44ADA, businesses and
professionals who choose presumptive taxation (i.e., paying tax on estimated
profits) can now report higher turnover if most of their payments are non-cash.
New Rule:
-If cash receipts are less than or equal to 5%, turnover limits are now:
- ₹3 crore (for businesses under 44AD)
- ₹75 lakh (for professionals under 44ADA)
Why this matters: This promotes digital payments and allows more people to use simplified taxation.
🔹9. More Information for Foreign Investors (FIIs/FPIs)
Foreign Institutional Investors (FIIs) and Foreign Portfolio
Investors (FPIs) must now provide their SEBI registration number while
filing ITR-3.
Why this matters: This helps track and regulate foreign investment activity in Indian markets more transparently.
🔹10. Detailed Balance Sheet Reporting – Related Party Advances
The balance sheet section in ITR-3 has been Updated. Henceforth advances from relatives (family members or group companies) have to be disclosed under a separate head called “Advances.”
Why this matters: This improves transparency and scrutiny of related party transactions, thereby minimizing the chances of tax evasion.
✅ Summary
These updates in the new ITR-3 form aim to:
- Make the tax filing process more user-friendly
- Reduce paperwork for small taxpayers
- Ensure accurate and transparent reporting
- Stay aligned with new tax rules and schemes