ITR-3 Now Available for Online Filing: What You Must Know
The ITR-3 now available for online filing marks a key milestone in the Income Tax Return (ITR) process for Assessment Year 2025–26. If you’re an individual or HUF having income from business or profession, this form is for you. The Income Tax Department has enabled online filing of ITR-3 from July 29, 2025, easing compliance for lakhs of taxpayers.
Who Should File ITR-3?
ITR-3 must be filed by individuals and Hindu Undivided Families (HUFs) who have:
- Income from business or profession (proprietorship, freelancing, consultancy, etc.)
- Income from partnership firm (other than exempt under Section 10(2A))
- Capital gains
- House property income
- Income from other sources (interest, dividend, etc.)
⚠️ Note: ITR-3 is not applicable to LLPs or companies. They must file ITR-5 or ITR-6.
Key Features of ITR-3 for AY 2025–26
Here’s what’s new and important in ITR-3 for AY 2025–26 as per CBDT Notification No. 42/2025 dated 29.04.2025:
| Section | Update |
|---|---|
| Schedule VDA | Mandatory disclosure for Virtual Digital Assets (Crypto, NFTs) |
| Schedule FA/FSI | Improved reporting of foreign assets and income |
| Cash Receipts > ₹2 crore | Disclosure required to opt for presumptive under Section 44AD |
| Tax Regime | Select between old and new regime u/s 115BAC(6) |
| Balance Sheet | Enhanced validation of capital accounts and asset details |
[Refer: CBDT Notification No. 42/2025]
Step-by-Step: How to File ITR-3 Online
- Log in to www.incometax.gov.in
- Navigate to e-File > Income Tax Returns > File Income Tax Return
- Select AY 2025–26, filing type as Original/Revised, and ITR Form: ITR-3
- Choose the Online Mode
- Pre-fill your return using AIS/TIS and previous filings
- Fill and validate Schedules BP, CG, FA, TCS, TDS, TR
- Choose Tax Regime under Section 115BAC
- Review computation and click Proceed to Verification
- E-verify using Aadhaar OTP or Net Banking
- Download and save the acknowledgment (ITR-V)
Expert Tip: Avoid Mismatch with AIS/TIS
Before filing, cross-check your Annual Information Statement (AIS) and Taxpayer Information Summary (TIS). Mismatches with reported income, interest, or foreign remittances may trigger scrutiny.
Also, if you’ve opted out of the new tax regime last year, reconfirm your selection in ITR-3 as per Section 115BAC(6).
Legal Reference: Rule 12 & Section 139(1)
ITR-3 is notified under Rule 12 of the Income-tax Rules, 1962. The due date for non-audit taxpayers remains 15th September 2025, as extended by CBDT Circular No. 06/2025.
Filing after the due date? Late fee under Section 234F applies—₹5,000 if total income exceeds ₹5 lakh.
Common Errors to Avoid
- Wrong ITR form: Don’t file ITR-1/4 if you have business income
- Skipping Schedule FA: Must disclose foreign holdings—even if NIL income
- Inaccurate depreciation claim: Match it with last year’s WDV
- Not opting for 44ADA/44AE correctly: Especially if income is from freelancing or transport
FAQs on ITR-3 Online Filing
Q1. Can salaried individuals use ITR-3?
Yes, if they also earn income from business/profession or capital gains.
Q2. Is balance sheet mandatory in ITR-3?
Yes, for businesses and professionals not under presumptive taxation.
Q3. Can ITR-3 be filed using Excel/JSON utility?
Yes, but online mode is easier, especially for prefilled data usage.
Final Word: File with Confidence via Efiletax
The ITR-3 now available for online filing is a welcome move for business professionals and consultants. Use this window to stay compliant, report correctly, and avoid late fees or notices.
Need expert help? Let Efiletax handle your ITR-3 filing—accurate, timely, and audit-proof.
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Summary
ITR-3 now available for online filing on the Income Tax portal. Individuals and HUFs with business, professional income, or capital gains must file using ITR-3 for AY 2025–26. New updates include crypto reporting, regime selection, and enhanced foreign asset disclosure. Deadline: 15th Sept 2025.