With more Indians embracing digital income—through trading, crypto, freelancing, or online businesses—the Income Tax Department has stepped up its game in FY 2024–25. If you made money online, you’re now on the radar, and filing your return without understanding the new rules could cost you—heavily.
From stricter audits to new disclosure schedules, this year’s return filing requires smart preparation, correct classification, and timely compliance.
Let’s break down what you must watch out for before you hit “submit” on your ITR.
Don’t File the Wrong ITR Form
Gone are the days of picking ITR-1 or ITR-2 for everything. Here’s what’s changed:
- Trading & Crypto? You need ITR-3 (or ITR-4 if opting for presumptive).
- Freelancing, Influencer Income, Affiliate Earnings? Must report as Business Income, not “Other Sources”.
- Intraday or F&O Trading? Treated as full-fledged business under tax laws.
Mistake to avoid: Using ITR-2 when you’re eligible only for ITR-3. This can get your return processed with errors and raise red flags.
Capital Gains Rules Got Sharper
Selling shares or mutual funds? Here’s the update:
- LTCG (Long-Term Capital Gains): Above ₹1 lakh = taxed @10% (Sec 112A). No indexation.
- STCG (Short-Term): Taxed @15% flat.
What’s new? These values are now auto-filled from brokers and AIS. Cross-check your cost price, acquisition date, and sale value before submitting. Mismatches = demand notices.
Intraday & F&O Are Fully Taxed Business Incomes
Intraday, Options, and Futures traders must:
- Report under “Profits & Gains from Business”
- Use ITR-3, not ITR-2
- Maintain a Profit & Loss statement (mandatory)
- File tax audit if turnover > ₹15 cr or if you opt out of presumptive schemes
New Threshold: The audit limit is now ₹15 crore (if digital receipts ≥ 95%) under Section 44AB.
Crypto Gains? Welcome to Flat 30% Tax World
If you traded Bitcoin, Ethereum, or any virtual digital asset (VDA), here’s what applies:
- 30% flat tax on gains (Sec 115BBH)
- No deduction, no set-off, no carry forward
- 1% TDS on each transfer (Sec 194S)
- Must disclose all transactions under Schedule DI or FA-Crypto
Missed reporting crypto losses thinking they “don’t matter”? Think again. Omitting even a loss can trigger scrutiny.
Freelancing, Blogging, Affiliate or Platform Earnings = Business
Made money via:
- Upwork, Fiverr, Clarity.fm?
- AdSense, brand deals, affiliate links?
- Amazon/Flipkart sales?
- Swiggy/Ola driving?
All these incomes now fall under “Business or Profession.”
You may also face:
- 1% TDS under Sec 194O (platforms deduct if payments > ₹5 lakh/year)
- 2% TDS under Sec 194P (gig workers if income > ₹5 lakh/year)
Reconcile with Form 26AS and report under Business Income. Don’t miss this.
Opting for Presumptive Scheme? Don’t Miss the Deadline
If you’re a:
- Freelancer or consultant (under ₹50 lakh turnover)
- Small business owner (under ₹2 cr turnover with 95% digital receipts)
… you can opt for Sec 44ADA or 44AD, meaning 50% (or 6–8%) deemed income, no books required.
But here’s the catch: you must declare your intent while filing the ITR. Once you opt in, it’s locked for 5 years.
Final Takeaway: File Smart, Stay Safe
The government isn’t just checking “if” you filed—it’s checking “how accurately” you filed.
Digital incomes are transparent now. Every app, broker, platform, or crypto exchange is reporting your income to the tax department.
To stay compliant and confident:
- Use the correct ITR form
- Pay advance tax on time
- Don’t misuse deductions like 87A
- Reconcile every single transaction
Thanks for the reading
Got a doubt or a personal tax situation to discuss? Drop it in the comments below – our tax experts respond regularly.
Add Your Heading Text Here
