ITR-3 Online Filing for AY 2025-26: Eligibility, Key Changes and Due Dates
The Income Tax Department has activated the online utility for filing Income Tax Return (ITR)–3 on its e-filing portal for Assessment Year (AY) 2025–26 (Financial Year 2024–25). This form can be used by individuals and Hindu Undivided Families (HUFs) who have income from profits and gains of business or profession, along with other sources of income.
Before filing, taxpayers must ensure they are not eligible to file returns using ITR-1, ITR-2, or ITR-4. The department has also introduced several key changes in the ITR-3 form this year.
Who Can File ITR-3?
The ITR-3 form is meant for individuals and HUFs having income from profits and gains of business or profession (including audit and non-audit cases). In addition, it can also be used by taxpayers with income from salary, pension, capital gains, or remuneration from a partnership firm.
According to the Income Tax Department, ITR-3 must also be filed by any person whose income chargeable to tax under “Profits and gains of business or profession” is in the nature of interest, salary, bonus, commission, or remuneration received from a partnership firm.
Who Cannot File ITR-3?
This form cannot be used by entities other than individuals or HUFs. Further, individuals and HUFs who do not have income from business or profession are not eligible to file ITR-3.
Key Changes in ITR-3 for AY 2025–26
The Income Tax Department has made several changes in the ITR-3 form to ease the compliance burden for taxpayers:
Higher Threshold for Schedule AL: The threshold for reporting assets and liabilities under Schedule AL has been increased from ₹50 lakh to ₹1 crore. This change is aimed at reducing the disclosure burden on middle-income taxpayers.
Split Reporting of Capital Gains: Under the Schedule Capital Gains, taxpayers will now need to split capital gains based on whether they were realised before or after July 23, 2024. This update aligns with the changes in capital gains taxation announced in the Union Budget 2024.
For example, individuals or HUFs who purchased a house before July 23, 2024, can choose to pay long-term capital gains (LTCG) tax at 12.5% without indexation or 20% with indexation. The Budget 2024 also revised the LTCG tax rates and exemption limits for investments in equity mutual funds and equity shares.
Detailed Deduction Reporting: The form now includes dropdown menus for deductions and requires more granular reporting for claims under sections such as 80C, 80E, 80EEA, 80EE, 80EEB, and 10(13A). Section-wise reporting for tax deducted at source (TDS) has also been introduced.
Difference Between ITR-3 and ITR-4
While ITR-3 is applicable for individuals and HUFs with income from business or profession, ITR-4 is for resident individuals, HUFs, and firms (other than LLPs) whose total income does not exceed ₹50 lakh in the previous year.
Taxpayers eligible for ITR-4 must meet specific conditions. Their income from business or profession must be computed on a presumptive basis under sections 44AD, 44ADA, or 44AE. They must also have long-term capital gains (LTCG) not exceeding ₹1.25 lakh under Section 112A. In addition, they can only have income from salary or pension, one house property, agricultural income up to ₹5,000, and income from other sources (excluding lottery winnings and racehorse income).
Due Dates for ITR-3 Filing
For AY 2025–26, the due date for filing ITR-3 is September 15, 2025, for non-audit cases. For taxpayers whose accounts require auditing, the due date is October 31, 2025.
