5.9 Crore+ Tax Returns Filed: ITR-3 Usage Surges

Hey there! If you were among the many trying to file your income tax returns (ITR) this year, you’re not alone. The Income Tax Department confirmed that over 5.9 crore ITRs were filed by the July 31 deadline.

Let’s break down some key figures from this filing season:

• A total of over 5.9 crore income tax returns were submitted by July 31.
• More than 5.47 crore of these returns have already been verified.
• Approximately 2.38 crore ITRs have been fully processed.

You might notice a shift in which ITR forms people are using. There’s been a decline in the simplest ITR-1 form, as more individuals, perhaps like you, are reporting capital gains from stocks and mutual funds, which means you’d need to use ITR-2.

What’s New for F&O Traders?

A big change affects retail traders involved in Futures and Options (F&O). Income from derivatives is now treated as non-speculative business income, so you can’t use ITR-1 or ITR-2.

This means you’ll need to file using the more detailed ITR-3 form. If your ITR-3 doesn’t require a formal tax audit, you actually have a little more time.

• Your deadline for ITR-3 without an audit was extended to August 31.

What Happens if You Missed the July 31 Deadline?

If you missed the primary July 31 deadline, don’t panic, but know there are consequences. You can still file a belated return under Section 139(4).

Here’s what you might face:

• You could incur late fees of up to ₹5,000.
• You’ll permanently lose the option to choose the old tax regime, which often offered more deductions.
• You’ll be limited in carrying forward business losses, capital losses, or F&O trading losses to offset future gains.

While a belated return is possible until December 2026, it’s always best to file on time to avoid these financial disadvantages. Make sure to finalize your ITR-3 by the August 31 deadline if that applies to you.