The ITR-3 form is now live on the Income Tax Department’s e-filing portal for the Assessment Year (AY) 2025-26. This is great news for individuals and Hindu Undivided Families (HUFs) who earn income from a business or profession, as they can now file their returns completely online.
Who Should Use ITR-3?
This form is specifically designed for you if you’re an individual or HUF with:
- Business or professional income (e.g., freelancers, doctors, consultants, small business owners).
- Income from share trading, including futures and options (F&O).
- Income as a partner in a firm.
- Income from unlisted equity shares (like those not traded on major exchanges).
- Capital gains or foreign assets/income.
- A total income exceeding ₹50 lakh.
- If you’re not eligible to file ITR-1 (Sahaj), ITR-2, or ITR-4 (Sugam) due to your income sources or total income.
Key Updates for Financial Year (FY) 2024-25 (AY 2025-26)
The ITR-3 form for this year comes with several important new features and reporting requirements:
- Split Capital Gains Reporting: You’ll need to report capital gains transactions separately, depending on whether they occurred before or after July 23, 2024.
- Capital Loss on Share Buyback: There’s now a provision to claim capital loss on share buybacks, especially if there’s related dividend income.
- Higher Asset & Liability Reporting Limit: The threshold for reporting assets and liabilities has been increased significantly, from ₹50 lakh to ₹1 crore in total income.
- New Section for Cruise Business: A dedicated section (Section 44BBC) has been added for those involved in the cruise business under presumptive taxation.
- Enhanced Deduction Reporting: More detailed reporting is required for various deductions, including those under Section 80C and Section 10(13A) for House Rent Allowance (HRA).
- TDS Section Code Reporting: You’ll now need to report the TDS (Tax Deducted at Source) section code in Schedule-TDS.
- Virtual Digital Assets (VDAs): Mandatory disclosure for all virtual digital assets like cryptocurrencies and NFTs in Schedule VDA.
- Foreign Assets/Income: Improved and more detailed reporting for foreign assets and income in Schedule FA/FSI.
- New Tax Regime Choice: You’ll need to confirm if you filed Form 10-IEA in AY 2024–25 and declare whether you intend to continue with or opt out of the new tax regime for the current assessment year.
How to File ITR-3 Online
Ready to file? Simply log in to incometax.gov.in to complete your return digitally.
Important Dates to Remember for AY 2025-26 (FY 2024-25):
- Individuals/HUFs/AOP/BOI (non-audit cases): The due date to file your ITR has been extended to September 15, 2025.
- Businesses requiring an audit: The due date is October 31, 2025.
- Businesses requiring transfer pricing reports: The due date is November 30, 2025.
- Belated/Revised Return: The final date to file a belated or revised return is December 31, 2025.
Before you start filing, make sure you have all your financial documents handy. This includes profit/loss statements, balance sheets, Form 16 (if applicable), bank statements, and any proofs for tax-saving investments. Double-check all pre-filled information to ensure accuracy.
Do you have all your necessary documents ready for filing?
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