ITR 2025: Online filing of ITR-3 now enabled; check details on key updates on forms, utility
The ITR-3 form is intended for individuals and Hindu Undivided Families (HUFs) who are involved in a business or profession and are required to maintain books of accounts. It is also suitable for salaried individuals who earn additional income from freelancing, consultancy, or part-time business activities, provided they report income under the head “Profits and Gains from Business or Profession.”
- Jul 30, 2025,
- Updated Jul 30, 2025 1:35 PM IST
The Income Tax Department has officially enabled the online submission of Income Tax Return (ITR) Form 3 (ITR-3). This development allows individuals with income from share trading—such as futures and options (F&O)—business income, or investments in unlisted shares (e.g., shares in the National Stock Exchange), to now file ITR-3 directly through the e-filing portal.
On July 30, 2025, the department issued a public notice stating: “Kind Attention Taxpayers! Income Tax Return Form of ITR-3 is now enabled for filing through online mode.”
Who should file ITR-3?
ITR-3 is applicable to individuals and Hindu Undivided Families (HUFs) who earn income from profits and gains of business or profession. It is often regarded as a comprehensive or "master" form, since it enables eligible filers to report a wide range of income types in one place.
Eligibility criteria for filing ITR-3
Individuals or HUFs engaged in any business or profession (whether subject to tax audit or not)
Those earning income from house property, salary or pension, capital gains, and income from other sources
Individuals receiving remuneration from a partnership firm
Who is not eligible to file ITR-3
Entities other than individuals and HUFs
Individuals and HUFs who do not have income from business, profession, or partnership firm remuneration
Those eligible to file ITR-1, ITR-2, or ITR-4 forms instead
Key updates to ITR-3 for AY 2025–26 (FY 2024–25):
As per the Income Tax Department, several significant updates have been made to ITR-3:
Schedule-Capital Gains now requires separate reporting of gains made before and after July 23, 2024, following amendments introduced in the Finance Act, 2024.
Capital losses on share buybacks may now be claimed if corresponding dividend income is disclosed under "Income from Other Sources" for buybacks after October 1, 2024.
The threshold for mandatory asset and liability disclosure has been increased to a total income exceeding Rs 1 crore.
Inclusion of Section 44BBC for reporting income from the cruise ship business under presumptive taxation.
Enhanced reporting requirements for deductions such as those under Sections 80C and 10(13A).
A new requirement to report the TDS section code in Schedule-TDS.
Changes in the ITR-3 excel utility (AY 2025–26):
As per a report in the Economic Times, CA Dr. Suresh Surana has highlighted seven key modifications in the ITR-3 Excel utility that taxpayers should be aware of:
> Disclosure of Tax Regime Selection (Form 10-IEA): Filers must confirm whether Form 10-IEA was submitted in AY 2024–25 and declare if they wish to opt in or out of the new tax regime for the current assessment year.
> Revised Capital Gains Reporting: Due to adjustments in capital gains tax rates via the Finance Act (No. 2), 2024, Schedule CG and related fields have been updated. Taxpayers must now distinctly report capital gains transactions made before and on/after July 23, 2024.
> Separate indexation reporting: Resident taxpayers transferring land or buildings before July 23, 2024, must now separately disclose the cost of acquisition and cost of improvement to allow proper calculation of indexation benefits.
> Increased income threshold: Taxpayers whose total income exceeds ₹1 crore—up from the earlier ₹50 lakh limit—are now required to report their assets and liabilities as of the end of the financial year, unless already disclosed under Part A (Balance Sheet).
> Section 44BBC reporting: A new section has been added to accommodate reporting under Section 44BBC, which pertains to presumptive taxation for businesses involved in operating cruise ships.
> New row for dividend income: Taxpayers must now separately report dividend income received in the form of buyback proceeds, as defined under Section 2(22)(f) of the Income Tax Act.
Capital Loss from share buybacks: A specific row has been included in Schedule CG to allow reporting of capital losses resulting from company share buybacks, in accordance with Section 68 of the Companies Act, 2013. These losses may be claimed provided the related dividend income is disclosed as "Income from Other Sources."
The Income Tax Department has officially enabled the online submission of Income Tax Return (ITR) Form 3 (ITR-3). This development allows individuals with income from share trading—such as futures and options (F&O)—business income, or investments in unlisted shares (e.g., shares in the National Stock Exchange), to now file ITR-3 directly through the e-filing portal.
On July 30, 2025, the department issued a public notice stating: “Kind Attention Taxpayers! Income Tax Return Form of ITR-3 is now enabled for filing through online mode.”
Who should file ITR-3?
ITR-3 is applicable to individuals and Hindu Undivided Families (HUFs) who earn income from profits and gains of business or profession. It is often regarded as a comprehensive or "master" form, since it enables eligible filers to report a wide range of income types in one place.
Eligibility criteria for filing ITR-3
Individuals or HUFs engaged in any business or profession (whether subject to tax audit or not)
Those earning income from house property, salary or pension, capital gains, and income from other sources
Individuals receiving remuneration from a partnership firm
Who is not eligible to file ITR-3
Entities other than individuals and HUFs
Individuals and HUFs who do not have income from business, profession, or partnership firm remuneration
Those eligible to file ITR-1, ITR-2, or ITR-4 forms instead
Key updates to ITR-3 for AY 2025–26 (FY 2024–25):
As per the Income Tax Department, several significant updates have been made to ITR-3:
Schedule-Capital Gains now requires separate reporting of gains made before and after July 23, 2024, following amendments introduced in the Finance Act, 2024.
Capital losses on share buybacks may now be claimed if corresponding dividend income is disclosed under "Income from Other Sources" for buybacks after October 1, 2024.
The threshold for mandatory asset and liability disclosure has been increased to a total income exceeding Rs 1 crore.
Inclusion of Section 44BBC for reporting income from the cruise ship business under presumptive taxation.
Enhanced reporting requirements for deductions such as those under Sections 80C and 10(13A).
A new requirement to report the TDS section code in Schedule-TDS.
Changes in the ITR-3 excel utility (AY 2025–26):
As per a report in the Economic Times, CA Dr. Suresh Surana has highlighted seven key modifications in the ITR-3 Excel utility that taxpayers should be aware of:
> Disclosure of Tax Regime Selection (Form 10-IEA): Filers must confirm whether Form 10-IEA was submitted in AY 2024–25 and declare if they wish to opt in or out of the new tax regime for the current assessment year.
> Revised Capital Gains Reporting: Due to adjustments in capital gains tax rates via the Finance Act (No. 2), 2024, Schedule CG and related fields have been updated. Taxpayers must now distinctly report capital gains transactions made before and on/after July 23, 2024.
> Separate indexation reporting: Resident taxpayers transferring land or buildings before July 23, 2024, must now separately disclose the cost of acquisition and cost of improvement to allow proper calculation of indexation benefits.
> Increased income threshold: Taxpayers whose total income exceeds ₹1 crore—up from the earlier ₹50 lakh limit—are now required to report their assets and liabilities as of the end of the financial year, unless already disclosed under Part A (Balance Sheet).
> Section 44BBC reporting: A new section has been added to accommodate reporting under Section 44BBC, which pertains to presumptive taxation for businesses involved in operating cruise ships.
> New row for dividend income: Taxpayers must now separately report dividend income received in the form of buyback proceeds, as defined under Section 2(22)(f) of the Income Tax Act.
Capital Loss from share buybacks: A specific row has been included in Schedule CG to allow reporting of capital losses resulting from company share buybacks, in accordance with Section 68 of the Companies Act, 2013. These losses may be claimed provided the related dividend income is disclosed as "Income from Other Sources."