ITR-3 Form: Complete Guide for AY 2025-26 (FY 2024-25)
Filing your income tax return with the correct ITR form is crucial for accurate compliance. ITR-3 is specifically designed for individuals and Hindu Undivided Families (HUFs) who earn income from a business or profession, including those maintaining books of accounts. In this article, we’ll walk you through everything you need to know about ITR-3, including eligibility, key changes, filing procedure, and detailed form structure for Assessment Year 2025-26.
What is ITR 3 Form?
ITR-3 is an income tax return form applicable to individuals and HUFs who have income from profits and gains of business or profession. It is one of the most comprehensive ITR forms, often referred to as a master form, as it allows reporting of:
- Business and professional income (including audit cases)
- Income from salary or pension
- House property income
- Capital gains
- Income from other sources
- Income from partnership firm as remuneration, salary, interest, etc.
Who Can File ITR-3?
You are eligible to file ITR-3 if you are:
- An individual or HUF
- Carrying on a business or profession
- A freelancer, consultant, trader, or self-employed individual
- Receiving income from a partnership firm (like remuneration or interest)
- Also earning from salary, multiple house properties, capital gains, or other sources
Who Cannot File ITR-3?
Due Dates for ITR-3 Filing (AY 2025-26):
Major Changes in ITR-3 for AY 2025-26:
- Capital Gain Reporting – Pre & Post 23rd July 2024: Taxpayers must now split capital gains based on whether the transfer occurred before or after 23rd July 2024, as per Finance Act 2024 changes.
- Capital Loss on Share Buyback – From 1st Oct 2024: Losses from share buyback are allowed if the related dividend income is declared under “Other Sources”.
- Asset & Liability Reporting – Threshold Increased: Reporting is mandatory only if total income exceeds ₹1 crore, raised from ₹50 lakh in previous years.
- Section 44BBC – Cruise Business Presumptive Taxation: New section added for non-resident cruise operators, taxing 20% of passenger receipts as income.
- Enhanced Deduction Disclosures: Detailed disclosures now required for:
- Section 80C
- House Rent Allowance [Section 10(13A)]
- Other deductions
- TDS Section Code Reporting: Taxpayers must specify the TDS section codes for all deducted taxes in Schedule-TDS to ensure accuracy and reconciliation.
Structure of ITR-3 Form (AY 2025-26):
Part A:
- General Information
- Balance Sheet (Part A-BS)
- Profit & Loss Account (Part A-P&L)
- Manufacturing and Trading Accounts
- Quantitative Details (optional for non-audit cases)
Income Schedules:
- Schedule S – Salary income
- Schedule HP – Income from house property
- Schedule BP – Business/profession income
- Schedule CG – Capital gains
- Schedule 112A/115AD – Equity-related capital gains
- Schedule OS – Other income
- Schedule VDA – Crypto or digital asset income
Loss and Deduction Schedules:
- CYLA/BFLA/CFL – Loss set-off and carry-forward
- UD – Unabsorbed depreciation
- ICDS – Adjustments due to Income Computation and Disclosure Standards
- 80G, 80IA, 80IB, 80CCH, etc. – Deduction statements
- AMT/AMTC – Alternate Minimum Tax and credit
Other Schedules:
- Schedule IF – Details of partnership firms
- Schedule EI – Exempt income
- Schedule FA/TR/FSI – Foreign assets and tax relief
- Schedule AL – Asset and liability (if income > ₹1 crore)
- Schedule ESOP – Deferred tax on ESOPs
- Schedule GST – Turnover reported under GST
Computation and Verification:
- Part B-TI – Total income computation
- Part B-TTI – Tax liability computation
- Verification section
Documents Required to File ITR-3:
Here’s what you’ll need to file ITR-3 smoothly:
- PAN, Aadhaar, and bank details
- Form 16 (for salary income)
- Form 26AS, AIS, TIS (tax summary)
- Profit & loss account and balance sheet
- Capital gains statements from brokers
- TDS certificates (Form 16A)
- Rental income details (if any)
- Investment proofs for deductions (80C, 80D, 80G, etc.)
- Foreign asset or income disclosures (if applicable)
- ESOP-related documentation
- GST returns/summary (if applicable)
How to File ITR 3?
ITR-3 must be filed online. Two modes are available:
Option 1: File with Digital Signature
- Complete the form on Income Tax e-Filing Portal
- Sign electronically using DSC (Digital Signature Certificate)
Option 2: File without DSC
- Submit data electronically and send ITR-V (signed copy) via post to:
- CPC, Income Tax Department, Bengaluru – 560500
- Must be sent within 30 days of filing
Note: ITR-3 is annexure-less – No physical documents are to be attached.
Previous Year Changes – AY 2023-24 and AY 2024-25
Here are some notable changes that continue to apply:
- Schedule VDA: Introduced to report income from Virtual Digital Assets (e.g., crypto). Requires transaction-wise and quarterly reporting.
- Opt-out Query: Added to confirm whether the taxpayer opted out of New Tax Regime in past years.
- FII/FPI Disclosures: Foreign investors must provide SEBI registration numbers.
- Balance Sheet Disclosure: Advances received under Section 40A(2)(b) must now be reported separately.
- Intraday Trading Reporting: Income and turnover from intraday trades must be disclosed under a new Trading Account section.
Disclaimer:
The content of this article is intended for informational and educational purposes only. The views expressed are personal and not intended as tax advice or product recommendations. Please consult a tax professional for personalized guidance.
