ITR-3 Online Filing for AY 2025–26 Begins: Who Should File and What’s New?
The Income Tax Department has officially enabled the online filing of ITR-3 for Assessment Year (AY) 2025–26, bringing in a host of new reporting requirements and updates tailored for taxpayers with complex income sources.
If you are a business owner, professional, share trader, or company director, this article is for you. Filing ITR-3 accurately and on time is crucial to avoid penalties, scrutiny, or loss of tax benefits.
✅ What Is ITR-3 and Who Should File It?
ITR-3 is the income tax return form designed for individuals and Hindu Undivided Families (HUFs) having income under the head of:
Business or Profession
Capital Gains
Other Sources, including interest, dividend, etc.
Foreign income or foreign assets
Rental income from more than one property
🎯 You Should File ITR-3 If:
You are a business owner or freelancer/professional
You are earning income from capital gains, such as sale of shares or mutual funds
You own foreign assets or have foreign bank accounts
You receive income from more than one house property
You are a partner in a firm or a company director
You hold unlisted shares
You have a combined income exceeding ₹50 lakh from multiple sources
🆕 What’s New in ITR-3 for AY 2025–26?
The Central Board of Direct Taxes (CBDT) has introduced some important changes in ITR-3 to reflect updates in taxation laws and reporting structures:
1. Capital Gains Segregation Based on Date
From July 23, 2024, the tax rate on long-term capital gains (LTCG) increased from 10% to 12.5%, and the exemption threshold rose from ₹1 lakh to ₹1.25 lakh.
Taxpayers must now report capital gains separately:
Gains before July 23, 2024
Gains on or after July 23, 2024
This helps in applying the correct tax rate and exemption threshold.
2. Share Buyback Loss Reporting
Losses from share buybacks can now be claimed only if the related dividend has been declared and taxed. This reduces double benefits and clarifies compliance for active traders and investors.
3. Higher Asset Disclosure Threshold
Previously, taxpayers were required to disclose details of assets like vehicles, jewelry, shares, etc. if their income exceeded ₹50 lakh.
Now, the disclosure threshold is raised to ₹1 crore, reducing compliance burden for mid-income individuals.
4. New Section 44BBC for Cruise Operations
If you earn income from cruise services, a new section 44BBC applies. It allows presumptive taxation for such businesses under specific conditions.
This is similar to Section 44AD (for small businesses) and 44ADA (for professionals), offering simplified taxation.
5. Increased Disclosure for Deductions
You now need to provide:
Detailed breakup of deductions claimed under Chapter VI-A (like 80C, 80D, 80G)
TDS Codes and Income Head linked to each deduction
This helps reduce mismatch and ensures smoother refund processing.
🗓️ Important Deadlines and Tips
The due date for ITR-3 for individuals not liable for audit is 15th September 2025
If you’re subject to audit under Section 44AB, your due date is 31st October 2025
Delay in filing can lead to late fees up to ₹5,000, plus interest on taxes payable
✔️ Tips for Smooth Filing:
Keep your TDS certificates (Form 16/16A) ready
Reconcile with Form 26AS and AIS
Report capital gains with accurate date of acquisition/sale
Use offline utility or online ITR-3 form on https://www.incometax.gov.in
Maintain books of account if required (especially for business and professional income)
Take help from a tax consultant if you have foreign income, capital gains, or partnership firm income
🔗 Useful Links:
📌 Final Thoughts
The online ITR-3 utility for AY 2025–26 is now live, and it comes with enhanced disclosures, especially in capital gains and deduction claims. Taxpayers falling under complex income categories should file early, understand the new provisions, and stay fully compliant.
Remember — accurate and early filing can help you get faster refunds and avoid notices. If in doubt, always consult a professional or trusted tax advisory service.
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