Nagpur : The Income Tax Department has officially activated the online filing utility for ITR-3 for Assessment Year 2025-26. This form is specifically meant for individuals and Hindu Undivided Families (HUFs) who earn income from business, profession, or other complex sources such as F&O trading, capital gains, or unlisted shares.
The move comes just ahead of the extended filing deadline and allows eligible taxpayers to complete their income tax return filing through the official e-filing portal. With the activation of the Excel-based utility (Version 1.1), users can now prepare and upload their returns online without the need for physical submission.
Who Should Use ITR-3?
ITR-3 is meant for:
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02 Aug 2025
- Individuals or HUFs carrying on a proprietary business or profession
- Those having income from F&O trading, capital gains, multiple house properties, or unlisted shares
- Partners in firms (not LLPs) receiving profit share or remuneration
This form is not applicable to salaried individuals without business income (who must use ITR-1 or ITR-2), or those under presumptive tax schemes (who use ITR-4).
What’s New in AY 2025-26?
As per CBDT’s April 2025 notification, the ITR-3 form has been updated with several new features:
- Capital Gains Segregation: Gains must be reported separately for transactions before and after July 23, 2024.
- Updated Asset & Liability Threshold: Disclosure now required only if total income exceeds ₹1 crore.
- New Professional Codes Introduced: Influencers (code 16021), F&O Traders (21010), Betting Agents (21009), and others must now use specific activity codes.
- Unlisted Share Reporting: Requires acquisition and sale details, PAN of companies involved, and year-wise summary.
- Virtual Digital Assets: Mandatory disclosure for income and holdings in cryptocurrencies or NFTs.
- Form 10-IEA Reporting: Taxpayers opting for the new tax regime must now mention 10-IEA filing status.
Important Deadlines
- For non-audit cases: Due date extended to September 15, 2025
- For audit cases: Due date remains October 31, 2025
Late filing beyond these dates may attract penalties up to ₹5,000 under Section 234F.
Expert Tips
Tax experts advise early filing to avoid portal issues and to take advantage of faster refund processing. “Given the additional disclosures required in ITR-3 this year, especially for those dealing with F&O or crypto, it’s advisable not to wait until the last minute,” said Anil Goenka, a senior tax consultant in Mumbai.
How to File
- Download the latest ITR-3 Excel utility (v1.1) from the e-filing portal.
- Fill the form offline, validate, and generate a JSON file.
- Upload it through the portal and verify via Aadhaar OTP, DSC, or e-verification.
Conclusion:
The activation of ITR-3 utility marks a crucial step for self-employed professionals, traders, and business owners to comply with India’s evolving income tax rules. With multiple updates and enhanced disclosure norms, taxpayers are encouraged to review the changes carefully or consult a CA to ensure accurate filing before the deadline.
