ITR-3 Form for AY 2025-26: Key Changes Explained

The ITR-3 Form for AY 2025-26 has been introduced by the Central Board of Direct Taxes (CBDT) through Notification No. 41/2025 dated April 30, 2025. This new form applies to individuals and Hindu Undivided Families (HUFs) with income from business or profession. The revised form will be applicable starting from April 1, 2025, and is not meant for taxpayers eligible to file ITR-1, ITR-2, or ITR-4.

Key Changes in the ITR-3 Form for AY 2025-26

The ITR-3 Form for AY 2025-26 brings several key changes:

1. Detailed Business and Professional Income Reporting:
   Taxpayers will need to provide detailed information about their business and professional income, including gross receipts and profit and loss account details.

2. New Tax Regime Option Under Section 115BAC:
   Taxpayers must now specify whether they are opting for the new tax regime under Section 115BAC and provide the filing details of Form 10-IEA.

3. Disclosures on Foreign Assets and Residential Status:
   Non-residents and individuals with foreign assets must disclose their tax residency and Significant Economic Presence (if any).

4. Director or Shareholder Disclosure:
   Directors of companies or shareholders in unlisted companies must provide company names, PANs, and financial details related to the acquisition and sale of shares.

5. Audit and Financial Report Details:
   Those whose accounts are audited must report audit details, including auditor’s information, the audit report date, and the UDIN number.

6. Presumptive Income Reporting:
   Taxpayers opting for presumptive taxation schemes must fill in the relevant sections for declaring income under Sections 44AD, 44ADA, or 44AE.

7. Specific High-Value Transactions:
   Taxpayers will be required to report if they’ve:

   • Deposited over ₹1 crore in a current account

   • Spent over ₹2 lakh on foreign travel

   • Paid more than ₹1 lakh in electricity bills

Why the ITR-3 Form for AY 2025-26 Matters

The ITR-3 Form for AY 2025-26 is designed to improve transparency and bring Indian tax compliance closer to global standards. While it may seem more complex, these changes help ensure that income is accurately reported and minimize the chances of future tax issues.

Need Help Filing Your ITR-3?
Let professionals handle it for you. At FilingIn, we make tax filing easy, accurate, and hassle-free.

📞 Contact FilingIn
🌐 Website: cp.filingin.com
📱 Mobile: +91 8778715343

FAQs

1. Who should file the new ITR-3 form?
   The ITR-3 Form AY 2025-26 must be filed by individuals and HUFs earning income from business or profession, excluding those eligible for ITR-1, ITR-2, or ITR-4.
2. What is Form 10-IEA in the ITR-3?
   Form 10-IEA is used to opt in or out of the new tax regime under Section 115BAC.
3. Do I have to disclose foreign assets?
   Yes, detailed disclosure is required if you have foreign income or assets or are a non-resident.
4. What happens if I miss reporting high-value transactions?
   Failure to disclose large transactions may trigger scrutiny or penalties.
5. Is professional help necessary to file ITR-3?
   It’s strongly recommended, especially for those with audits, foreign income, or opting for the new tax regime.