Glitch in ITR-3 Filing over LTCG Rates raises Validation Errors, Income Tax Dept Responds
The due date for filing income tax returns for non-audit cases is September 15, 2025
A tax professional on X (formerly Twitter) raised a glitch in the Income Tax Return (ITR)-3 utility relating to the treatment of Long-Term Capital Gains ( LTCG) on equity shares. The difference in tax rates announced for shares sold before and after July 23, 2024, is the cause of the problem.
According to the professional, LTCG on shares sold on or after 23rd July 2024 is taxable at 12.5%, while those sold before are taxed at 10%. Although the Capital Gains (CG) schedule in ITR-3 provides bifurcation, the issue occurs in the Brought Forward Loss Adjustment (BFLA) schedule, where both categories of gains are aggregated under a single row [(xa)] at 10%, without proper segregation.
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He tweeted that “In ITR- III, glitch is there. LTCG on shares sold on or after 23rd July 24 is at 12.5% while before is at 10%; in CG schedule bifurcation is available but in BFLA it is not bifurcating at correct place and by aggregate (both before and after 23rd july aggregating at one place) showing at 10% only that is (xa) row therefore validation error is coming and not able to finalise return. Please correct it asap.”
https://x.com/nigam_rajiv/status/1957003754357846161
This mismatch has led to validation errors, preventing filers from finalising their returns, said the professional tagging the income tax department.
The Income Tax Department, responding to the grievance, acknowledged the complaint on X and advised the professional to escalate the matter by writing to orm@cpc.incometax.gov.in, providing PAN and mobile details for further assistance.
The technical issue becomes relevant because the deadline for non-audit cases is September 15, 2025. In addition many taxpayers have started complaining about delays in processing the returns, refund delays, issue of the website not working even on Sundays..etc.
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