The Central Board of Direct Taxes (CBDT) has officially notified the ITR-3 form for the Assessment Year 2025–26, bringing notable updates for taxpayers with business or professional income. While the form is now available, the e-filing utility is still pending release.
Key Changes in ITR-3 for AY 2025-26
The latest CBDT notification introduces several updates aimed at improving compliance and streamlining disclosures. One of the key highlights includes simplified provisions for taxpayers reporting long-term capital gains (LTCG) up to ₹1.25 lakh from listed equity shares, aligning with recent updates also seen in ITR-1 and ITR-4 forms.
Additionally, the updated ITR-3 form expands reporting fields for income from business or profession, especially concerning presumptive income under sections 44AD, 44ADA, and 44AE. Taxpayers engaged in speculative businesses, commission income, or who are partners in firms are now expected to furnish more granular details under these categories.
While the structure remains consistent with previous years, new sections may require more careful documentation of assets, liabilities, and foreign income, in line with CBDT’s push for greater transparency.
Who Needs to File ITR-3?
ITR-3 is applicable to individuals and Hindu Undivided Families (HUFs) who earn income under the head “Profits and Gains of Business or Profession.” This includes self-employed professionals, business owners, and individuals who may be partners in firms. It is also used by those earning income from speculative businesses such as trading in futures and options (F&O).
Unlike ITR-1 and ITR-2, which are designed for salaried individuals and those with capital gains or other sources of income, ITR-3 targets more complex income profiles. As such, proper record-keeping and use of accounting software can help ease the filing process.
When Will ITR Filing Begin?
Although the ITR-3 form has been officially notified, the income tax department has yet to release the online filing utility. However, according to industry experts, filing is expected to begin as early as next week.
Meeting the deadline is crucial. For taxpayers whose accounts don’t require an audit, the last date to file is July 31, 2025. In cases where an audit is necessary, the deadline extends to October 31. Delays beyond these dates may attract penalties and interest on unpaid taxes.
Meanwhile, early filers are encouraged to start preparing their documents and financial statements, especially given the added reporting requirements in the new form.
To stay updated and download the official ITR-3 form, visit the Income Tax e-Filing Portal.
With these new changes, understanding market trends, asset disclosures, and the impact on tax liability has never been more important for business owners and professionals. Filing early, with accurate and complete data, remains the best strategy to avoid last-minute hurdles.