• Notification Date: 27-05-2024
• Notification No: N/A

Income Tax Dept Releases Online, Offline and Java JSON Utilities for ITR-3 FY 2023-2024 Return Filing

The Income Tax Department has released a range of filing options to simplify the process for taxpayers required to submit ITR-3 for the financial year 2023-24 (Assessment Year 2024-25).  Online Utility – This web-based platform pre-fills data from the Central Recordkeeping Agency (CRA), saving time and minimizing errors. Users can confirm the pre-filled information and add any missing details before submitting their return.  

Offline (Java) Utility – This downloadable software is ideal for taxpayers with complex financial data, such as those maintaining detailed accounting records, facing audits, or with income spread across various sections. It operates in JSON format, commonly used for data exchange.  

An alternative to the Java-based option, the Excel utility caters to taxpayers who prefer a spreadsheet (excel) format. Users can download the file, fill in the relevant tabs, and generate an uploadable return.   

A partner at a Mumbai-based CA firm, clarified the distinction between the offline options: “While the online utility requires you to navigate page by page within the e-filing portal, the Java-based offline utility is a downloadable software offering a more streamlined experience.”   

Who Needs ITR-3? 

This form applies to individuals and Hindu Undivided Families (HUFs) with income from business or professional activities. It encompasses cases requiring tax audits and those that don’t. Additionally, the ITR-3 can accommodate income from house property, salary/pension, capital gains, and other sources.   

Key Points about ITR-3 (FY 2022-23):  

1. A new schedule (VDA) is included for separate reporting of income from cryptocurrency and other virtual digital assets (VDAs).  

2. Capital gains from VDAs require a quarterly breakdown within the Capital Gains Schedule. Details of each VDA transaction, including purchase and sale dates, must be reported.  

3. The form includes questions to determine if you opted out of the New Tax Regime in previous years.  

4. Foreign Institutional Investors (FIIs/FPIs) must provide their SEBI registration number.  

5. Minor adjustments have been made to balance sheet reporting. Advances received from specific individuals under Section 40A(2)(b) of the Income Tax Act and others must be reported under the “Advances” heading in the Source of Funds section.  

6. A new section, “Trading Account,” captures turnover and income from intraday trading.  

The deadline to file ITR-3 for FY 2023-24 (AY 2024-25) is July 31, 2024, for those not subject to a mandatory tax audit.