ITR-3 Filing in India
ITR-3 is an income tax return form for individuals and Hindu Undivided Families (HUFs) who earn income from a business or profession. It’s also applicable for those with income from salary, pension, house property, capital gains, or foreign assets. The form requires detailed reporting of your income, deductions (like under sections 80C and 80D), tax calculations, and bank account details. Filing ITR-3 is mandatory for taxpayers subject to audit under Section 44AB and must be done electronically, with verification via digital signature or other approved methods.
Latest Update: New ITR-3 Form for AY 2025–26
The Income Tax Department has rolled out a revised ITR-3 form (Notification No. 41/2025 dated April 30, 2025), effective from April 1, 2025. This update impacts individuals and HUFs earning income from business or profession, in line with the Finance Act, 2024.
Key Highlights of the New ITR-3 Filing:
Capital Gains (Schedule CG):
Clearer rules on classifying short-term vs. long-term capital assets.
Revised tax rates for LTCG & STCG.
Updated indexation norms.
Capital gains must now be reported separately for transactions before and after July 23, 2024.
Buyback of Shares:
If dividend income under Section 2(22)(f) is shown, capital loss from share buybacks (on or after Oct 1, 2024) must also be reported.
Assets & Liabilities:
Disclosure limit raised — now required only if your income exceeds ₹1 crore (earlier ₹50 lakh).
Business/Profession Income:
A new section 44BBC introduced for reporting income from the cruise shipping business.
Deductions (80C, 80E, 80EE, 24(b), 10(13A)):
More detailed disclosures needed, such as loan account numbers, policy numbers, and HRA details.
TDS (Schedule-TDS):
Taxpayers must now mention the specific section under which TDS was deducted for better validation.
Who is Eligible for ITR-3 Filing?
You need to file the ITR 3 form if:
You are a Director in a company.
You are an individual or HUF earning business/professional income.
You have pension income.
You earn from house property.
You own unlisted equity shares.
Your earnings fall under profits and gains of business or profession (salary, bonus, commission, interest or remuneration).
Who Cannot File ITR-3?
Not everyone can use the ITR-3 form. If you are an individual or HUF earning income as a partner in a partnership firm, you are not eligible to file ITR-3. In such cases, you should file ITR-2 instead.
Essential Documents Required for ITR-3 Filing
In ITR-3 Filing return, make sure you have the following documents ready:
PAN Card: Mandatory for filing and for receiving refunds.
Aadhaar Card: Needed for verification; can replace PAN if linked.
Form 16: Details of your salary and TDS deductions.
Form 26AS: Annual tax statement showing TDS and tax credits.
Business/Professional Income Records: Profit & Loss account, Balance Sheet, and details of income and expenses.
Investment Proofs: For claiming deductions under sections like 80C (PF, ELSS) and 80D (health insurance).
Interest Certificates: From banks and post offices for interest income.
Rent Agreements & Municipal Tax Receipts: If applicable.
Home Loan Interest Certificates: For claiming deductions.
Sale & Purchase Deeds: For property transactions.
Capital Gains Statements: From brokers for equity or mutual fund transactions.
Bank Statements: Showing business or professional income and expenses.
Schedule FA: Details of foreign assets and overseas income.
Audit Reports (if applicable): Section 44AB for businesses with turnover above ₹1 crore or professionals with receipts over ₹50 lakh.
ITR-V Form: Needed for return verification; sign and send by post if not done digitally.
How to Download ITR-3 Filing Form
Follow these simple steps to download your ITR-3 form:
Visit the Income Tax e-Filing Portal: Open the official Income Tax e-Filing website.
Go to ‘Downloads’: Click on the “Downloads” tab on the homepage.
Select ITR-3: Choose the relevant Assessment Year and click on “ITR-3” under the “Forms (ITR)” section.
Choose the Format: You can download ITR-3 in Excel, Java Utility, or JSON format depending on your preferred method of filing.
Install Pre-requisites: Make sure your system has the required utilities (like Java or Excel) installed to open and fill the ITR-3 form
