ITR-3 enabled for e-filing:
Income taxpayers with share trading, unlisted shares investment, professional, business, other incomes can now file ITR-3 online for AY 2025-26
Jul 30, 2025
Synopsis
The Income Tax Department has activated online filing for ITR-3. Taxpayers with income from share trading, business, or unlisted shares can now file online. This applies to individuals and Hindu Undivided Families with business or professional income. There are seven key changes in the ITR-3 excel utility. These involve regime selection, capital gains reporting, and asset disclosure. Read more.
The Income Tax Department has enabled online filing of income tax return (ITR) form number 3 (ITR-3). This means those with share trading income like future and options (F&O), business income, or even investment in unlisted shares like National Stock Exchange (NSE), they can now file ITR-3 via the e-filing ITR portal.
The Income Tax Department said on July 30, 2025: “Kind Attention Taxpayers! Income Tax Return Form of ITR-3 is now enabled for filing through online mode.”
Who needs to file ITR-3 for AY 2025-26 (FY 2024-25)?
According to chartered accountant Abhishek Soni, co-founder, Tax2Win, ITR-3 is to be used by either an individual or a Hindu Undivided Family who are carrying on a business or profession. The following persons are eligible to fill this form:
The residential status can be either Non-resident or Resident(ROR/RNOR)
If a person is the director of the company.
Persons who had investments in unlisted equity shares at any time during the entire financial year.
Income from other sources
Income of a person who is a partner in a firm.
Income from salary or Pension
Income from House Property(one or more)
Total income can exceed 50 lakhs in this case.
Income earned from capital gains or foreign assets/foreign income.
Who has income under the head profits or gains of business or profession and who is not eligible to file Form ITR-1 (Sahaj), ITR-2, or ITR-4 (Sugam).
Key changes in ITR-3 form for AY 2025-26 (FY 2024-25)
According to the Income Tax Department, Key updates for ITR-3 are:
Schedule-Capital Gain split for gains before/ after 23.07.2024 (post changes in Finance Act, 2024)
Capital loss on share buyback allowed if corresponding dividend income is shown as income from other sources (post 01.10.2024)
Asset & liability reporting limit raised to Rs 1 crore of total income
Reference of sec 44BBC (cruise biz) added
Enhanced reporting for deductions [80C,10(13A)] etc.
TDS section code to be reported in Schedule-TDS
Seven prominent changes in ITR-3 excel utility
Chartered Accountant Suresh Surana explains seven prominent changes in ITR-3 excel utility for AY 2025-26 which every taxpayer filing ITR-3 should know:
Disclosure of Regime Selection (Form 10-IEA): Form ITR-3 now requires assessees to confirm whether Form 10-IEA was filed in AY 2024–25 (i.e., the preceding financial year), along with a declaration on whether they intend to continue with or opt out of the new tax regime for the current assessment year.
Revised Reporting for Capital Gains Transactions: Due to the changes in capital gains tax rates brought about by the Finance Act (No. 2), 2024, Schedule CG and other related Sections have been revised. Now, taxpayers have to report capital gains transactions separately for those done before and on or after July 23, 2024.
Bifurcation of Indexed Cost for Resident Individuals: Resident taxpayers are now required to separately provide details of the cost of acquisition and cost of improvement for any land or building transferred before July 23, 2024. This is intended to help apply indexation benefits for those transfers.
Enhanced Threshold for Asset and Liability Reporting: Taxpayers with a total income of over Rs 1 crore (up from Rs 50 lakh) now need to disclose their assets and liabilities at the end of the financial year, except for those already covered under Part A – Balance Sheet.
Inclusion of Presumptive Taxation under Section 44BBC: The updated form ITR-3 now includes provisions for reporting under Section 44BBC, which deals with presumptive taxation for income earned from operating cruise ships.
New Reporting Requirement for Dividend Income under Section 2(22)(f): A specific row has been added to report dividend income received in the form of buyback proceeds under Section 2(22)(f).
Capital Loss Reporting for Share Buybacks: The updated form ITR-3 now includes a distinct row in Schedule CG for reporting capital losses that come from companies buying back shares from shareholders, as per Section 68 of the Companies Act, 2013. These losses can be claimed, as long as the corresponding dividend income is reported under the ‘Income from Other Sources’ category.
[The Economic Times]
