Income Tax Return Filing 2025: Who Needs To File ITR-3? Eligibility, Key Features, Updates
ITR-3 is one of the most detailed forms, meant for individuals and Hindu Undivided Families (HUFs) who have income from business or profession. Here's all you need to know:
ITR Filing 2025: The income tax return (ITR) filing season is going on, and the deadline for non-audit ITRs is September 15, 2025. The income tax department has already enabled different income tax return (ITR) forms for various categories of taxpayers. Among these, ITR-3 is one of the most detailed forms, meant for individuals and Hindu Undivided Families (HUFs) who have income from business or profession. It covers taxpayers engaged in more than just salary or capital gains income.
Who should file ITR-3?
ITR-3 is meant for individuals and Hindu Undivided Families (HUFs) who have income under the head 'profits and gains of business or profession" and are not eligible to file ITR-1 (Sahaj), ITR-2, or ITR-4 (Sugam).
You need to file ITR-3 if you are:
An individual or HUF carrying on a business or profession (proprietorship, consultancy, freelancing, etc.).
A partner in a firm and earning income from the partnership (other than salary/commission, which goes in ITR-2).
Earning income from presumptive taxation schemes (under Sections 44AD, 44ADA, or 44AE).
Having income from house property, salary/pension, or other sources along with business/professional income, including F&O trading.
Earning capital gains along with business/profession income.
Who cannot use ITR-3?
Companies, LLPs, and firms (they have separate forms like ITR-5, ITR-6, etc.).
Individuals or HUFs without business/professional income (they should file ITR-1 or ITR-2 depending on conditions).
Key details required in ITR-3
Profit and loss statement of the business/profession
Balance sheet details (assets, liabilities, debtors, creditors, etc.)
Details of presumptive income if opted under Sections 44AD/44ADA/44AE
Income from salary, house property, capital gains, and other sources
Foreign assets/income (if any)
Taxes paid, advance tax, TDS/TCS details
For the assessment year (AY) 2025-26 (i.e., for income earned in FY 2024-25), there are some important updates that taxpayers need to be aware of:
Capital Gains Cut-Off Date – July 23, 2024
A notable change this year is related to capital gains reporting. The Finance Act, 2024, amended the capital gains rules for shares and mutual funds acquired on or after July 23, 2024. As per the amendment:
Equity mutual funds and listed shares sold on or after July 23, 2024, will have higher LTCG (12.5%) and STCG (20%). However, those sold before this date will attract old rates of 10% (LTCG) and 15% (STCG).
This change impacts the way taxpayers report Schedule CG (Capital Gains) in ITR-3. Taxpayers must now separately report gains from assets sold before and after the July 23 cut-off date.
This implies a split approach in reporting and calculating capital gains, and may require more detailed documentation for future filings.
Filing Deadline
The due date to file ITR-3 for individuals and professionals not subject to tax audit is September 15, 2025.
For those whose accounts require audit under the Income Tax Act, the last date is October 31, 2025. However, audit needs to be submitted by September 30, 2025.
Taxpayers are advised not to wait until the last moment, especially given the complexity of this year's disclosures related to capital gains.
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August 20, 2025, 14:01 IST
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