What is ITR 3, Release Date, Who Should File, Applicability & How to File it?

The ITR-3 form is specifically designed for individuals and Hindu Undivided Families (HUFs) engaged in business or profession, who are required to maintain books of accounts. 

Those who do not have income from business or profession is not eligible to file under ITR-3. Buy, individuals earning from salaried employment and additional sources like freelancing or part-time business activities can also use the ITR-3 form to file their income tax returns as long as they have business income.

ITR 3 Released For FY 2024-25

The Income Tax Department has released the utilities for ITR-2 and ITR-3 on 11th July 2025, thus allowing eligible taxpayers to start filing their Income Tax Returns using ITR-2 and ITR-3 for FY 2024-25 (AY 2025-26). Taxpayers can download the ITR-3 utility tool from the Income tax Portal. 

What is the ITR-3 Form?

The ITR-3 is applicable for individual and HUF who have income from profits and gains from business or profession. One can call it a master Form, as this is the one form where an individual or HUF can report all the possible incomes.

Download Form ITR-3 for AY 2025-26!

Who is Eligible to File the ITR-3 Form?

• Carrying on a business or profession (both tax audit and non-audit cases)
• The return may include income from house property, salary/pension, capital gains and income from other sources.
• Remuneration received from a partnership firm

Who is Not Eligible to File the ITR-3 Form?

• No persons other than individuals & HUF are eligible to file ITR -3 Form.
• Individuals & HUFs not having income by way of business or profession or partnership firm are not eligible to file the ITR-3 Form. 
• In other words, any person who is eligible to file ITR-1, ITR-2 and ITR-4 is not eligible to file ITR-3.

Due date for Filing the ITR-3 form

For non-audit cases, the due date  to file ITR-3 for FY 2024-25 (AY 2025-26) has been extended to 15th September 2025 from 31st July 2025 and for accounts requiring audit, the due date is 31st October. 

Major Changes in ITR-3 form for AY 2025-26

Schedule - Capital Gain Split (Before/After 23rd July 2024)

• Capital gains will now be split based on the Finance Act, 2024, changes that affect gains before and after 23rd July 2024. This will require taxpayers to categorise their gains and calculate tax accordingly.
• The change aims to streamline capital gain reporting by specifying the timeframes impacted by the Finance Act amendments, ensuring clearer tax treatment.

Capital Loss on Share Buyback (After 01.10.2024)

• As per the new provisions, capital losses on share buybacks will be allowed if the corresponding dividend income is reported under "Income from Other Sources." This change applies from 01st October 2024, adding clarity to the treatment of capital losses related to buybacks.
• Taxpayers must ensure that dividend income is reported correctly to claim the loss under capital gains.

Asset & Liability Reporting Limit Increased to Rs. 1 Crore of Total Income

• The threshold for reporting assets and liabilities in the ITR-3 form has been raised to Rs. 1 crore of total income. Taxpayers with total income exceeding Rs. 1 crore must disclose detailed asset and liability information.
• The increased reporting limit aims to bring greater transparency for higher-income individuals and streamline compliance.

Addition of Section 44BBC (Cruise Business)

• The ITR-3 form has been updated to include the presumptive taxation provisions under Section 44BBC, as introduced in the Budget 2024 for cruise business operators. This section deems 20% of passenger carriage receipts as taxable profits for non-resident cruise operators.
• Including this reference in the ITR-3 form clarifies the reporting requirements for cruise businesses, ensuring they understand the specific tax provisions applicable to their operations and comply more effectively with the new taxation structure.

Enhanced Reporting for Deductions (80C, 10(13A), etc.)

• There has been enhanced reporting for deductions such as under Section 80C, Section 10(13A) (House Rent Allowance), and others. Taxpayers claiming these deductions will need to provide more detailed information to ensure correct eligibility and avoid errors in reporting.
• This aims to reduce discrepancies and improve the accuracy of deductions claimed, enhancing overall tax compliance.

TDS Section Code Reporting in Schedule-TDS

• A new requirement has been introduced: taxpayers need to report the TDS section code in the Schedule-TDS section of the ITR-3 form. This will enable better tracking of tax deducted at source and simplify the reconciliation process for both taxpayers and tax authorities.

How to File ITR-3? – Steps to e-File Your ITR-3

ITR e-Filing – Login & Required Documents

You can file your income tax return (ITR) on the ClearTax platform. Here is a guide on filing ITR-3 if you have income from business or profession, intra-day trading or Futures and Options (F&O) trading. Before we get started, you should have the following documents at hand to pace up the process:

• PAN
• Aadhaar
• Bank account details
• Form 16 if applicable
• Investments details
• Books of account

Step 1: Login

Login to your ClearTax account (www.cleartax.in). You can file ITR by yourself in a few simple steps. To begin ITR filing, click on the ‘Start Filing’ link.

Step 2: Link Your PAN

Clear (previously ClearTax) allows you to access data from the income tax department and pre-fill information for preparing an income tax return. Link your PAN by entering ‘PAN Card Number’ and ‘Date of Birth’.

The linking shall complete when you do an OTP verification. You can verify OTP by selecting ‘Aadhaar registered mobile number’ or ‘IT Department registered mobile number’.

Step 3: Pre-fill Your Personal Information

To allow us to pre-fill your information from the income tax department, complete another OTP verification. This OTP verification is to capture all your personal information and income details in your income tax return with maximum security of your data.

After OTP verification, the personal information and income details will be imported from the income tax department.

On the next page, you can preview all your details pre-filled. All you have to do is ensure that they are correct.

Step 4: Edit and Review Details

Personal Information

Go to the ‘Personal Info’ tab and check the pre-filled details. If you want to add or edit any information, you can make the changes and proceed.  

Income Sources

Go to the ‘Income Sources’ tab. Here, your salary details are also pre-filled. Just review the details whether they are correct and edit if required. If you did not select the pre-fill option earlier, you could upload your Form 16 or 26AS PDF to fetch the salary details. Next, you can enter details of rental income or income from house property, other income, and capital gain

ClearTax has partnered with various brokerage firms to capture the capital gains from shares and mutual-fund-related transactions automatically. We support importing capital gains data directly from platforms like 5paisa and Paytm Money. 

In the capital gains section, click on the relevant platforms

You will be redirected to a new tab where you can log in to your broker’s account, and after successful login, all your capital gains details will be fetched automatically.

Profit from Business or Profession

Now, enter the business income tab. Here, you will need to click ‘Add BSPL Income'. Fill in the Balance sheet, P&L, depreciation, ICDS and other details if they are applicable.

Once done, scroll down to fill in the income computation in Schedule BP and fill up the Schedule OI. Next, add your auditor details if tax audit is applicable to you. Then click on ‘Go to next’ to proceed to enter tax-saving details.

Under the ‘Deductions’ tab, review the investment details (say LIC, PPF, etc.) captured. If you want to add more tax-saving details, you can edit the fields and claim tax benefits here.

Watch out for the tax-saving tips that are prompted to you on the screen.  

Tip: Do you have kids? Claim benefits on their tuition fees under Section 80C.  
Also, interests up to Rs 10,000 earned on your savings account maintained with a bank, post office, or co-operative society can be claimed as a deduction under 80TTA.

Step 5: Enter the Tax Paid Details

If you scroll down below, you can enter taxes-paid details. Add tax payments already made if you have any non-salary income, say, interest or freelance income.

You can also add these details by uploading Form 26AS. In the case of uploading Form 26AS, only the TDS details get auto-populated and not the income, hence required to enter the income details in the respective place.

You can claim relief under Section 89 of the Income Tax Act. Also, enter the self-assessment tax paid for the relevant financial year under the tab ‘Self tax payments’

Step 6: Schedule AL and Other Disclosures

Now, if any of the conditions mentioned in the ‘Other Disclosures’ section apply to you, fill in those relevant sections.

Say your total income after deductions exceed Rs 50 lakh, you must fill in the schedule AL. Here, fill in details of all your assets and liabilities if they were not included in the balance sheet earlier. If you are a non‐resident or ‘resident but not ordinarily resident’, only the details of assets located in India are to be mentioned.

Likewise, in the current account deposits section, you will have to add the total amount deposited if you have deposited more than ₹1 crore in FY 22-23  

Step 7: View Summary, Compare, and Switch Tax Regimes

On the next page, you can also view the computation of your income tax. It will compare your tax under both old and new tax regimes.

The ClearTax portal allows you to switch the tax regime at this stage. You can also view and download your tax report.  

Scroll down below, and you can go through all the details filled by you in each section and edit any of these items. To proceed, click on ‘File tax’.

Step 8: Self-Declaration

You will need to declare that all the information in return, including the amounts, is correct. This step ensures that you have double-checked the information for its correctness and authorised ClearTax to file ITR on your behalf. To proceed, check the box and ‘Submit Declaration’.

Step 9: Pay Taxes

You can view your tax due status in the computation. If any tax is due to be paid, you must pay the same and enter the challan details to proceed to e-file. Read this guide to know how to pay your tax dues.

If you see ‘Refund’ or ‘No Tax Due’ here, you can proceed to e-file. You will get an acknowledgement number on the next screen.

Step 10: Make Payment

You can now make the payment for submitting your return through the Clear (previously ClearTax) portal. To do the same, click on ‘Proceed to e-File’. 

On completion, you will see a success message as shown below. 

Step 11: ITR Submitted Successfully

If the ITR is successfully submitted to the income tax department, you can see the same displayed on your screen.  

Step 12: e-Verify

Once your return is filed, e-verify your income tax return.

Important: Uploading ITR alone does not complete the return filing process. Verification of return is important to complete the return filing process.

What is the structure of the ITR 3 Form for AY 2024-25 and AY 2025-26?

ITR-3 is divided into:

• Part A
  • Part A-GEN: General information and Nature of Business
  • Part A-BS: Balance Sheet as of March 31, 2021, of the Proprietary Business or Profession
  • Part A- Manufacturing Account: Manufacturing Account for the financial year 2020-21
  • Part A- Trading Account: Trading Account for the financial year 2020-21
  • Part A-P&L: Profit and Loss for the financial Year 2020-21
  • Part A-OI: Other Information (optional in a case not liable for audit under Section 44AB)
  • Part A-QD: Quantitative Details (optional in a case not liable for audit under Section 44AB)

After this, there are the following schedules.

• Schedule-S: Computation of income under the head Salaries.
• Schedule-HP: Computation of income under the head Income from House Property
• Schedule BP: Computation of income from business or profession
• Schedule-DPM: Computation of depreciation on plant and machinery under the Income-tax Act
• Schedule DOA: Computation of depreciation on other assets under the Income-tax Act
• Schedule DEP: Summary of depreciation on all the assets under the Income-tax Act
• Schedule DCG: Computation of deemed capital gains on the sale of depreciable assets
• Schedule ESR: Deduction under section 35 (expenditure on scientific research)
• Schedule-CG: Computation of income under the head Capital gains.
• Schedule 112A: Details of Capital Gains where section 112A is applicable
• Schedule 115AD(1)(b)(iii)Proviso: For Non-Residents Details of Capital Gains where section 112A is applicable.
• Schedule-OS: Computation of income under the head Income from other sources.
• Schedule-CYLA-BFLA: Statement of income after set off of current year’s losses and Statement of income after set off of unabsorbed loss brought forward from earlier years.
• Schedule-CYLA: Statement of income after set off of current year’s losses
• Schedule BFLA: Statement of income after set off of unabsorbed loss brought forward from earlier years.
• Schedule CFL: Statement of losses to be carried forward to future years.
• Schedule- UD: Statement of unabsorbed depreciation.
• Schedule ICDS – Effect of Income Computation Disclosure Standards on Profit
• Schedule- 10AA: Computation of deduction under section 10AA.
• Schedule 80G: Statement of donations entitled for deduction under section 80G.
• Schedule RA: Statement of donations to research associations etc. entitled for deduction under section 35(1)(ii) or 35(1)(iia) or 35(1)(iii) or 35(2AA)
• Schedule- 80IA: Computation of deduction under section 80IA.
• Schedule- 80IB: Computation of deduction under section 80IB.
• Schedule- 80IC/ 80-IE: Computation of deduction under section 80IC/ 80-IE.
• Schedule VI-A: Statement of deductions (from total income) under Chapter VIA.
• Schedule AMT: Computation of Alternate Minimum Tax Payable under Section 115JC
• Schedule AMTC: Computation of tax credit under section 115JD
• Schedule SPI: Statement of income arising to spouse/ minor child/ son’s wife or any other person or association of persons to be included in the income of the assessee in Schedules-HP, BP, CG and OS.
• Schedule SI: Statement of income which is chargeable to tax at special rates
• Schedule-IF: Information regarding partnership firms in which assessee is a partner.
• Schedule EI: Statement of Income not included in total income (exempt incomes)
• Schedule PTI: Pass through income details from a business trust or investment fund as per section 115UA, 115UB
• Schedule TPSA: Secondary adjustment to transfer price as per section 92CE(2A)
• Schedule FSI: Details of income from outside India and tax relief
• Schedule TR: Statement of tax relief claimed under section 90 or section 90A or section 91.
• Schedule FA: Statement of Foreign Assets and income from any source outside India.
• Schedule 5A: Information regarding apportionment of income between spouses governed by Portuguese Civil Code
• Schedule AL: Asset and Liability at the end of the year(applicable where the total income exceeds Rs 50 lakhs)
• Schedule tax deferred on ESOP: Information of tax-deferred on ESOPS received from eligible start-ups referred to in Section 80-IAC
• Schedule GST: Information regarding turnover/ Gross receipt reported for GST
• Part B-TI: Computation of Total Income.
• Part B-TTI: Computation of tax liability on total income.
• Verification

How to File ITR-3 Form?

A taxpayer has to compulsorily file ITR-3 online. The ITR-3 can be filed online/electronically:

• By furnishing the return electronically under a digital signature
• By transmitting the data electronically and then submitting the verification of the return in Form ITR-V

If you submit your ITR-3 Form electronically under digital signature, the acknowledgement will be sent to your registered email id. 

You can also choose to download it manually from the income tax website. You are then required to sign it and send it to the Income Tax Department’s CPC office in Bangalore within 30 days of e-filing. 

Remember that ITR-3 is an annexure-less form i.e. you do not have to attach any documents when you send it.

Business Codes for ITR Forms

*n.e.c. – not elsewhere classified

Major Changes in ITR-3 form for AY 2023-24 and AY 2024-25

Below changes are incorporated in the ITR-3 form of the FY 2022-23 and applicable for FY 2023-24 as well:

• A new schedule VDA has been added to separately report your income from crypto/ other VDAs. If you treat income from VDAs as capital gains, a quarterly breakup will need to be given under the Capital Gains Schedule. In the new ITR-3 every VDA transaction will have to be reported along with the dates of sale and purchase.
• A few questions have been added in the new ITR 3 form to determine if you had opted out of the New Tax Regime in previous years.
• Foreign institutional investors (FII/FPI) must provide their SEBI registration number as an additional disclosure measure. 
• There has been a small change in balance sheet reporting. According to the new ITR-3 form, advances received from individuals specified in Sec 40A(2)(b) of the Income Tax Act and others must be reported under the ‘Advances’ heading in Source of Funds.
• Turnover and income from intraday trading must be reported under the newly introduced section ‘Trading Account’.