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Time of India
26 minutes ago
- Business
- Time of India
Online ITR-3 filing enabled: Income taxpayers with share trading, unlisted shares investment, professional, business, other incomes can now file ITR-3 online
Who needs to file ITR-3 for AY 2025-26 (FY 2024-25)? The residential status can be either Non-resident or Resident(ROR/RNOR) If a person is the director of the company. Persons who had investments in unlisted equity shares at any time during the entire financial year. Income from other sources Income of a person who is a partner in a firm. Income from salary or Pension Income from House Property(one or more) Total income can exceed 50 lakhs in this case. Income earned from capital gains or foreign assets/foreign income. Who has income under the head profits or gains of business or profession and who is not eligible to file Form ITR-1 (Sahaj), ITR-2, or ITR-4 (Sugam). Key changes in ITR-3 form for AY 2025-26 (FY 2024-25) Academy Empower your mind, elevate your skills Schedule-Capital Gain split for gains before/ after 23.07.2024 (post changes in Finance Act, 2024) Capital loss on share buyback allowed if corresponding dividend income is shown as income from other sources (post 01.10.2024) Asset & liability reporting limit raised to Rs 1 crore of total income Reference of sec 44BBC (cruise biz) added Enhanced reporting for deductions [80C,10(13A)] etc. TDS section code to be reported in Schedule-TDS Seven prominent changes in ITR-3 excel utility Disclosure of Regime Selection (Form 10-IEA): Form ITR-3 now requires assessees to confirm whether Form 10-IEA was filed in AY 2024–25 (i.e., the preceding financial year), along with a declaration on whether they intend to continue with or opt out of the new tax regime for the current assessment year. Form ITR-3 now requires assessees to confirm whether Form 10-IEA was filed in AY 2024–25 (i.e., the preceding financial year), along with a declaration on whether they intend to continue with or opt out of the new tax regime for the current assessment year. Revised Reporting for Capital Gains Transactions: Due to the changes in capital gains tax rates brought about by the Finance Act (No. 2), 2024, Schedule CG and other related Sections have been revised. Now, taxpayers have to report capital gains transactions separately for those done before and on or after July 23, 2024. Due to the changes in capital gains tax rates brought about by the Finance Act (No. 2), 2024, Schedule CG and other related Sections have been revised. Now, taxpayers have to report capital gains transactions separately for those done before and on or after July 23, 2024. Bifurcation of Indexed Cost for Resident Individuals: Resident taxpayers are now required to separately provide details of the cost of acquisition and cost of improvement for any land or building transferred before July 23, 2024. This is intended to help apply indexation benefits for those transfers. Resident taxpayers are now required to separately provide details of the cost of acquisition and cost of improvement for any land or building transferred before July 23, 2024. This is intended to help apply indexation benefits for those transfers. Enhanced Threshold for Asset and Liability Reporting: Taxpayers with a total income of over Rs 1 crore (up from Rs 50 lakh) now need to disclose their assets and liabilities at the end of the financial year, except for those already covered under Part A – Balance Sheet. Taxpayers with a total income of over Rs 1 crore (up from Rs 50 lakh) now need to disclose their assets and liabilities at the end of the financial year, except for those already covered under Part A – Balance Sheet. Inclusion of Presumptive Taxation under Section 44BBC: The updated form ITR-3 now includes provisions for reporting under Section 44BBC, which deals with presumptive taxation for income earned from operating cruise ships. The updated form ITR-3 now includes provisions for reporting under Section 44BBC, which deals with presumptive taxation for income earned from operating cruise ships. New Reporting Requirement for Dividend Income under Section 2(22)(f): A specific row has been added to report dividend income received in the form of buyback proceeds under Section 2(22)(f). A specific row has been added to report dividend income received in the form of buyback proceeds under Section 2(22)(f). Capital Loss Reporting for Share Buybacks: The updated form ITR-3 now includes a distinct row in Schedule CG for reporting capital losses that come from companies buying back shares from shareholders, as per Section 68 of the Companies Act, 2013. These losses can be claimed, as long as the corresponding dividend income is reported under the 'Income from Other Sources' category. The Income Tax Department has enabled online filing of income tax return ITR ) form number 3 (ITR-3). This means those with share trading income like future and options (F&O), business income, or even investment in unlisted shares like National Stock Exchange (NSE ), they can now file ITR-3 via the e-filing ITR Income Tax Department said on July 30, 2025: 'Kind Attention Taxpayers! Income Tax Return Form of ITR-3 is now enabled for filing through online mode.'According to chartered accountant Abhishek Soni, co-founder, Tax2Win, ITR-3 is to be used by either an individual or a Hindu Undivided Family who are carrying on a business or profession. The following persons are eligible to fill this form:According to the Income Tax Department, Key updates for ITR-3 are:Chartered Accountant Suresh Surana explains seven prominent changes in ITR-3 excel utility for AY 2025-26 which every taxpayer filing ITR-3 should know:
Indian Express
5 days ago
- Business
- Indian Express
The Income Tax Bill does not award arbitrary power to the state by allowing digital search and seizure. Here's why
On July 21, the Parliamentary Select Committee tabled in Parliament its report on the Income Tax Bill, 2025, aimed at simplifying and reforming the country's primary legislation on income tax. The Bill was introduced in the Lower House of Parliament in February this year, and the Select Committee was tasked to sift through the text of the Bill, clause by clause, to ensure that its objects and purposes are clearly and adequately spelt out. Importantly, the Committee has retained — and rightly so — the controversial provisions dealing with powers and procedures relating to digital search and seizure. The digital search and seizure powers are contained in Clause 247 of the Bill, which empowers the tax authority to enter and search any place where an electronic media or computer system (used to store relevant information or evidence) is suspected to have been kept. Clause 261(e) seeks to define 'computer system' to include virtual digital space, that is, personal and professional communications platforms and social media accounts, among other things. The power of the tax authority to enter and search a taxpayer's digital space has been criticised on the ground that wide search and seizure powers arbitrarily infringe upon the taxpayer's fundamental right to privacy guaranteed under Article 21 of the Indian Constitution. The Income Tax Act, as it currently stands, was introduced in 1961, and came into force in 1962. Section 132 of the 1961 Act — which corresponds to Clause 247 of the Bill — has always vested wide search and seizure powers in the tax authority. The Finance Act, 2001 inserted Section 2(12A) into the Act to extend legal recognition to books of account maintained on computers, and Section 2(22AA) was inserted to include 'electronic record' within the meaning of the word 'document' defined under the Act. Subsequently, the Finance Act, 2002 inserted Section 132(1)(iib) facilitating access to electronic devices. Finally, Section 275B made it a punishable offence to refuse cooperation with the tax authority in this regard. The power to conduct digital search and seizure, therefore, has always been available with the tax authority. In defining the term 'virtual digital space', the new Bill simply makes explicit what was already implicit in the law. Not only that, search and seizure powers have survived judicial review and scrutiny of the Supreme Court. In 1973, the constitutionality of Section 132 of the 1961 Act was unsuccessfully challenged before a five-judge Bench of the Supreme Court in Pooran Mal vs Director of Inspection. There, the Court categorically held that the tax authority must possess the power to conduct search and seizure to combat tax evasion. There is no reason why the underlying legal reasoning should not extend to digital search and seizure. Of course, our jurisprudential understanding of the right to privacy has since changed, especially after 2017, when a nine-judge bench of the Supreme Court in K Puttaswamy vs Union of India recognised the right to privacy as part of the fundamental right to life and liberty under Article 21 of the Indian Constitution. The right to privacy, however, is not absolute and, even if we were to apply Puttaswamy principles, search and seizure powers would still survive the scrutiny of our constitutional courts. Importantly, Clause 247 of the Bill (much like Section 132 of the 1961 Act) has sufficient safeguards in place and satisfies the Puttaswamy test of proportionality. For instance, the law requires the tax authority to record reasons before initiating a search and seizure action, and sanction must be obtained from, and granted by, the appropriate authority. Moreover, the powers so exercised would be subject to judicial review and a constitutional court may call upon the tax authority to disclose the reasons behind the search and seizure operation and may even examine the circumstances based on which sanction was obtained and granted. In fact, in a recent decision in the case of Principal Director of Income Tax vs Laljibhai Kanjibhai Mandalia (2022), the Supreme Court applied the Wednesbury principle to allow for search powers by deferring to the wisdom of the tax authority. In the past decade, Parliament has incorporated several changes in the tax law to keep pace with the digital transformation of the society. For instance, the concept of significant economic presence was incorporated in the income tax law to tax business profits of foreign companies deriving income without having any physical presence in India. Likewise, a digital services tax was enacted (now withdrawn) to tax revenues generated from digital services offered in India by foreign digital platforms. India is also actively participating in the Pillar One tax project spearheaded by the OECD to address tax challenges posed by digitalisation. Digital search and seizure powers contained in the Bill, which facilitate recovery of incriminating digital data, have a similar objective. The writer is an advocate in the Bombay High Court. Views are personal
Business Recorder
5 days ago
- Business
- Business Recorder
IMF links 4pc further ST abolition to 50,000 new ST registrations: FBR
ISLAMABAD: Federal Board of Revenue (FBR) Member, Inland Revenue, (Operations) Dr Hamid Ateeq Sarwar said Thursday that International Monetary Fund (IMF) has linked abolition of four percent 'further sales tax' on supplies to un-registered persons with sales tax registration of 50,000 persons. Explaining the rationale of retaining four percent additional sales tax on supplies to un-registered persons, FBR Member informed Senate Standing Committee on Finance on Thursday that the FBR had proposed abolition of four percent 'further sales tax' in budget (2025-26). When we took the proposal to the fund for approval, the IMF has asked the FBR to increase the number of sales taxpayers before abolition of the said tax. In 2023, the FBR had increased the rate of 'further sales tax' from three to four percent in the amended Finance Bill 2023. FBR extends deadline for electronic integration of sales tax system by one month Presently, the rate of further tax is four percent on the supplies made to the un-registered persons. The rate of 'further sales tax' was increased by one percent to discourage supplies made to the unregistered persons. If a person intended to remain out of the sales tax net, he is required to pay higher rate of further tax at the rate of four percent. Under the law, the 'further tax' is charged on supplies of taxable goods made by a registered person to a person who has not obtained a sales tax registration number or has obtained a registration number but is not an active taxpayer. The said rate of sales tax under sub-section (1A) of Section 3 of the Sales Tax Act was enhanced to four per cent through the Finance Act, 2023. The FBR Member said that the level of tax compliance in Pakistan is evident from the data that out of 200,000 registered sales taxpayers, only 60,000 are paying sales tax. Out of this, only 30,000 manufacturers are paying sales tax. 'We have 3 lakh 80,000 industrial consumers and over 5 million commercial connections.' About the cyber security arrangements of the FBR, he added that the government has averted 1,684 Indian cyber attacks including those on FBR. There was no data leakage of taxpayers as a result of these attacks, he added. Copyright Business Recorder, 2025
Business Recorder
5 days ago
- Business
- Business Recorder
Definition of ‘Tax fraud' & procedure for ‘arrest': There will be no amendment in Act: MoS
ISLAMABAD: Minister of State for Finance, Bilal Azhar Kayani Thursday said the government will not amend Finance Act 2025 to further change definition of tax fraud or procedure for arrest, but the Federal Board of Revenue (FBR) will issue sales tax explanatory circular to address all concerns of the business community. Kayani informed Senate Standing Committee on Finance on Thursday that the prime minister has strictly directed the FBR not to harass the taxpayers, particularly, business and trade. After detailed meetings with the federation and chambers, the government has started internal homework to resolve these issues. 'I will not share specific details as we are in IMF programme. However, all concerns of the business community will be addressed', he said. We have given assurance to the business community that it is our responsibility that the law should not be misused by the tax officials. There is a misunderstanding that law of arrest of tax evaders is a new law, he maintained. Finance Act expands definition of tax fraud Presidents of chambers of commerce and industries are well aware of the developments. A committee has also been formed to resolve issues in 30 days' period, he said. President Karachi Chamber of Commerce and Industry (KCCI) Muhammad Jawed Bilwani requested the committee to abolish clause 9 of the Section 37A (power to inquire, investigate offences warranting prosecution under this Act and arrest of a person). The arrest of taxpayer on the basis of 'suspicion' has also been challenged by Bilwani. However, committee members insisted that ample safeguards have been placed to check any misuse of the powers of the tax officials. In case of 'suspicion', there should be definite information of tax fraud for arresting the accused person, they said. Minister of State for Finance stated that there is some kind of misunderstanding between the FBR and business community. The government has placed additional safeguards in Finance Act 2025 to ensure that arrest powers should not be misused. Earlier, arrests were made by officials of the level of Additional Commissioners and now a committee comprising of senior FBR Members will give approval of the arrests. Bilal Azhar Kayani stated that it has also been decided to convene monthly meeting with the business community to review impact of the law on the businessmen. FBR Member (Inland Revenue - Operations) Dr Hamid Ateeq Sarwar said that Finance Act 2025 should not be amended at this early stage of promulgation. We should not create any embarrassment for the Parliament and it would not be appropriate to suddenly change the sales tax law after promulgation of the Finance Act 2025. He said that the purpose of the law is to take action against those involved in fraudulent business of fake/flying invoices. In 2024-25, the FBR prevented revenue loss of Rs837 billion on account of fake invoices. In 2023-24, tax fraud of Rs1,373 billion was prevented. The FBR Member said that the FBR has addressed all concerns of the business community through a sales tax circular. The FBR will clarify that arrest would not be made without clear evidence against the taxpayer. This issue will also be clarified through the circular. The FBR has also consisted Grievance Redressal Committee to address issues of the business community. If any tax officer has made a wrong case against the taxpayer, he would be punished. He dispelled impression that the FBR do not take action against the corrupt tax officials. 'You just simply go through the FBR website (Admin Wing-HRMS), the numbers of tax officials penalized has been made public.' The FBR Member said that both the Senate and National Assembly Standing Committees on Finance read clause by clause the entire Finance Bill and also proposed comprehensive changes in the sales tax law. Due to limited time, there were apprehensions that the anomy committee has not serious considered the issues of stakeholders. The business community has not been targeted in any way through Finance Act 2025. The responsibility to prove tax fraud has now been placed on the FBR, he said. Let the law come into effect as significant improvement in the law has been made to facilitate the business community, the FBR Member added. Chairman of the Finance committee said that the government has no intention to victimise business community. If the FBR's clarification is acceptable to business community then the law should remain in force for 2025-26. There is no need to amend Finance Act 2025 in case all issues are addressed by the FBR. Representative of the Faisalabad chamber of commerce and industry observed that we are not afraid of the law of arrest but we are concerned about the blackmailing by the tax officers in the field formations. Copyright Business Recorder, 2025
Hans India
23-07-2025
- Business
- Hans India
Government forgoes Rs 99K cr tax revenues via incentives in FY24
New Delhi:The government is estimated to have forgone around Rs 99,000 crore in revenue in the 2023-24 fiscal on account of tax incentives extended to corporates, Minister of State for Finance Pankaj Chaudhary said on Tuesday. Corporate tax rates have been gradually reduced since 2016, while phasing out the exemptions and incentives. In a written reply in the Rajya Sabha, Chaudhary gave the estimated revenue forgone due to the tax incentives by way of various deductions in corporate tax, from FY 2019-20 to 2023-24. The corporate tax revenue foregone in 2023-24 stood at Rs98,999, followed by Rs88,109 crore and Rs96,892 crore in 2022-23 and 2021-22, respectively. In 2020-21 and 2019-20, the total corporate tax revenue foregone was Rs75,218 crore and Rs8,043 crore respectively. The minister was replying to a question from AAP MP Raghav Chadha on the estimated loss to the exchequer due to the corporate tax reductions from 2019-20 to 2024-25, and for the financial year (2024-25). Estimated revenue foregone for the financial year 2024-25 till date is not available, Chaudhary said. Through Finance Act, 2016, the corporate tax rates were reduced to 29 per cent of the total income to promote growth, boost investment and create more job opportunities. In 2017, the corporate tax rates were reduced to 25 per cent of the total income, make smaller domestic companies having annual turnover of Rs50 crores more viable and to encourage firms to migrate to company format. In September 2019, the government announced a cut in base corporate tax for then existing companies to 22 per cent from 30 per cent; and for new manufacturing firms, incorporated after October 1, 2019, to 15 per cent from 25 per cent, provided they forego all exemptions and incentives. Vide Finance Act, 2024, tax rates on the income of foreign companies (other than that chargeable at special rates) have been reduced from 40 per cent to 35 per cent to promote investment and employment.
