Updated ITR-3 Excel Utility AY 2025-26 Released: Key Changes & Tips
The updated ITR-3 Excel utility for AY 2025-26 (Version 1.1) is now live on the Income Tax Department’s official portal. Taxpayers using the ITR-3 form—typically individuals and HUFs with business or professional income—must download this version to avoid errors during filing.
Let’s break down what’s new, what’s fixed, and what you should keep in mind while using it.
What is the ITR-3 Form?
The ITR-3 form is meant for:
- Individuals or HUFs having income from business or profession
- Those not eligible for ITR-1, ITR-2 or ITR-4
- Taxpayers with presumptive income (if not opting for ITR-4) under Section 44ADA/44AE/44AD but maintaining books of accounts
This includes chartered accountants, doctors, freelancers, and partners in firms.
What’s New in ITR-3 Excel Utility (Version 1.1)?
According to the Income Tax e-filing portal (as on July 2025), Version 1.1 of the ITR-3 Excel utility introduces the following updates:
| Change Type | Description |
|---|---|
| Bug Fixes | Resolved validation and data import issues reported in earlier version |
| Auto-Validations | Enhanced formulae to auto-check depreciation schedules and partner details |
| Section Updates | Minor tweaks to fields under Schedule BP and Schedule IF |
| Utility Version | Applicable only for Excel format (not for Java or JSON versions) |
📌 Download link: incometax.gov.in (official ITR Utility section)
Step-by-Step: How to Use the New Excel Utility
- Visit the official e-Filing portal
https://www.incometax.gov.in - Go to Downloads → ITR Forms → AY 2025–26
- Download Excel Utility for ITR-3
- Enable Macros in Excel
(This is required for the utility to function) - Fill in all schedules carefully
Especially Schedule BP (business income) and Schedule AL (assets & liabilities) - Validate & Generate XML
- Upload XML on e-Filing portal
Use your login credentials under the “Income Tax Return” tab
Legal Angle: ITR Filing is Mandatory with Right Utility
Under Section 139(1) of the Income Tax Act, filing of return is mandatory if:
- Total income exceeds the basic exemption limit
- There’s business or professional income (even if under loss)
- You’re claiming carry forward of loss, refund or have foreign assets
Using an outdated utility can lead to:
- Return rejection
- Mismatch in tax credit (Form 26AS vs. Schedule TDS)
- Delays in refunds or notices under Section 139(9)
Expert Tip: Watch for Presumptive vs. Regular Books
If you’re opting out of presumptive taxation this year (say, moving from 44AD to regular books), make sure:
- Schedule BP is correctly filled
- Prior year data under Schedule CYLA/BFLA/VI-A is entered for loss adjustments
- Use the latest utility to reflect transition logic correctly
A mismatch in declaration here often triggers notices or intimation under Section 143(1).
Common Mistakes to Avoid
- Not enabling macros before filling
- Leaving Schedule IF (partner details) blank if you’re a firm partner
- Not cross-verifying with Form 26AS and AIS for interest or TDS claims
- Forgetting to validate before generating XML
Why It Matters
With auto-processing of returns now standard, one wrong entry or outdated version can delay refunds or trigger compliance issues. Filing with the correct and updated utility ensures smooth return processing under the new CPC 2.0 system.
Related Blog
👉 Presumptive Taxation under Section 44AD & 44ADA – Who Should File ITR-4?
FAQ on Updated ITR-3 Excel Utility
Q1. Is ITR-3 applicable for salaried individuals with stock trading?
Yes, if they earn from intraday or F&O trading (treated as business income).
Q2. Can I use ITR-3 for presumptive income under 44ADA?
Yes, if you choose to maintain books and not file ITR-4.
Q3. What if I filed using old version?
Your return might get processed, but it’s risky. Use the latest version to avoid future notices.
Summary
Updated ITR-3 Excel Utility for AY 2025–26 is now live. Version 1.1 fixes bugs, improves auto-validations, and ensures accurate business income filing. Download from incometax.gov.in to avoid errors.
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