Use ITR 2 or 3? Be prepared to make more disclosures while filing return

Contributed funds to a political party? Have gains from cryptos? The taxman wants more details

The Central Board of Direct Taxes notified the Income-Tax Return (ITR) Forms 2, 3, and 5 last week for filing returns for assessment year (A.Y) 2024–25. ITR forms 1, 4, and 6 were notified earlier. ITR 2 and 3 have a few changes that individual taxpayers need to be aware of so that they comply with the tax laws.

“They include new fields aimed at enhancing the transparency of transactions and increasing disclosures in claiming deductions,” says Ronodeep Dutta, counsel, AQUILAW.

ITR-2 is for individuals or HUFs who receive income from sources other than profits and gains from business or