ITR-3 is an Income Tax Return form meant for individuals and Hindu Undivided Families (HUFs) who earn income from profits and gains of business or profession. This form is primarily applicable to taxpayers running proprietary businesses or engaged in professional services. Filing ITR-3 is crucial for accurately declaring income, claiming deductions, and calculating tax liabilities, ensuring compliance with tax laws while optimizing available tax benefits. For salaried individuals with additional business or professional income, understanding the correct approach to filing ITR-3 for AY 2025–26 (FY 2024–25) is essential. This article offers a comprehensive overview of ITR-3, including eligibility, how to download the ITR-3 form, and a step-by-step guide to filing it online.
ITR-3 Filing Complete Guide for FY 2024-25 (AY 2025-26): For Business and Professional Income
What is ITR-3?
ITR-3 is an income tax return form in India applicable to individuals and Hindu Undivided Families (HUFs) who earn income from proprietary businesses or professional practices. It is also suitable for taxpayers with income from other sources, such as salary, pension, house property, capital gains, foreign assets, or winnings from gambling and lotteries.
This form requires comprehensive disclosure, including:
Income details
Deductions (e.g., under Sections 80C, 80D)
Tax computation
Bank account information
ITR-3 must be filed electronically and is mandatory for individuals subject to audit under Section 44AB. Verification of the return can be done through digital signature, Aadhaar OTP, EVC, or by sending a signed physical copy of ITR-V to the CPC
Who is Eligible to File ITR-3?
Form ITR-3 should be used by individuals or HUFs who are not eligible to file ITR-1 (SAHAJ), ITR-2, or ITR-4 (SUGAM) and have income under the head “Profits or Gains of Business or Profession”.
You can file ITR-3 if you earn income from any of the following sources:
Proprietary business or professional services
Salary and pension
House property (including income from more than one property)
Capital gains (both short-term and long-term)
Other sources (e.g., lottery winnings, racehorse betting)
Foreign assets or income
Agricultural income exceeding ₹5,000
Who is Not Eligible to File ITR-3?
The following entities and individuals cannot file ITR-3:
Entities other than individuals and HUFs, such as:
Companies
LLPs (Limited Liability Partnerships)
Trusts, associations, and other juridical persons
Individuals and HUFs who do not have:
Business or professional income
Income as a partner in a partnership firm
Income Tax Slab Rates Applicable for ITR-3
Income Tax Slabs – FY 2024-25 (AY 2025-26)
New Tax Regime (Applicable to all Individuals & HUFs)
This regime offers concessional tax rates but limits most deductions and exemptions.
| Income Range (₹) | Applicable Tax Rate |
|---|---|
| Up to ₹4,00,000 | 0% |
| ₹4,00,001 – ₹8,00,000 | 5% |
| ₹8,00,001 – ₹12,00,000 | 10% |
| ₹12,00,001 – ₹16,00,000 | 15% |
| ₹16,00,001 – ₹20,00,000 | 20% |
| ₹20,00,001 – ₹24,00,000 | 25% |
| Above ₹24,00,000 | 30% |
Old Tax Regime – With Deductions & Exemptions
For Individuals Below 60 Years & HUFs
| Income Range (₹) | Tax Rate |
|---|---|
| Up to ₹2,50,000 | NIL |
| ₹2,50,001 – ₹5,00,000 | 5% |
| ₹5,00,001 – ₹10,00,000 | 20% |
| Above ₹10,00,000 | 30% |
For Senior Citizens (Aged 60 to 79 Years)
| Income Range (₹) | Tax Rate |
|---|---|
| Up to ₹3,00,000 | NIL |
| ₹3,00,001 – ₹5,00,000 | 5% |
| ₹5,00,001 – ₹10,00,000 | 20% |
| Above ₹10,00,000 | 30% |
For Super Senior Citizens (80 Years & Above)
Income Range (₹) | Tax Rate |
|---|---|
Up to ₹5,00,000 | NIL |
₹5,00,001 – ₹10,00,000 | 20% |
Above ₹10,00,000 | 30% |
Structure of the ITR-3 Form (AY 2025–26)
The ITR-3 Form is designed to capture comprehensive financial details of individuals and Hindu Undivided Families (HUFs) engaged in proprietary businesses or professions. It includes multiple parts and schedules, each serving a specific purpose to ensure complete and accurate reporting of income, deductions, and tax liabilities.
Part A – General and Financial Details
Part A-GEN: General information and nature of business or profession
Part A-BS: Balance sheet as on 31st March of the financial year
Part A-Manufacturing Account: Manufacturing account details for the year
Part A-Trading Account: Trading account information
Part A-P&L: Profit and Loss statement
Part A-OI: Other information (optional for non-audit cases)
Part A-QD: Quantitative details (optional for non-audit cases)
Income Computation Schedules
Schedule-S: Income from salary
Schedule-HP: Income from house property
Schedule-BP: Business or professional income
Schedule-CG: Capital gains (short-term and long-term)
Schedule-OS: Income from other sources
Depreciation and Deductions
Schedule-DPM: Depreciation on plant and machinery
Schedule-DOA: Depreciation on other assets
Schedule-DEP: Summary of depreciation
Schedule-DCG: Deemed capital gains on depreciated assets
Schedule-ESR: Deduction for scientific research (Section 35)
Loss Set-Off and Carry Forward
Schedule-CYLA: Current year loss adjustment
Schedule-BFLA: Set-off of brought forward losses
Schedule-CFL: Losses carried forward to future years
Schedule-UD: Unabsorbed depreciation
Deductions Under Income Tax Act
Schedule-10AA: Deductions for SEZ units under Section 10AA
Schedule-80G: Deductions for eligible donations
Schedule-RA: Deductions to research institutions
Schedule-80IA, 80IB, 80IC/IE: Deductions for specified businesses
Schedule-VI-A: Deductions under Chapter VI-A (Sections 80C to 80U)
AMT and Tax Credit
Schedule-AMT: Alternate Minimum Tax calculation (Section 115JC)
Schedule-AMTC: AMT credit under Section 115JD
Special Income and Additional Disclosures
Schedule-SPI: Income to be clubbed from spouse/minor
Schedule-SI: Special rate income (e.g., lottery, winnings)
Schedule-IF: Partnership firm details (if assessee is a partner)
Schedule-EI: Exempt income
Schedule-PTI: Pass-through income from investment funds
Schedule-TPSA: Transfer pricing secondary adjustments
Schedule-FSI: Foreign source income
Schedule-TR: Tax relief under Sections 90/90A/91
Schedule-FA: Disclosure of foreign assets and income
Schedule-5A: Income split under Portuguese Civil Code
Schedule-AL: Statement of assets and liabilities (if income > ₹50 lakh)
Schedule-Tax Deferred on ESOP: Tax deferral on ESOPs from eligible start-ups (Section 80-IAC)
Schedule-GST: Turnover details as per GST filings
Final Tax Computation and Verification
Part B-TI: Total income computation
Part B-TTI: Tax liability calculation
Verification: Declaration and signature by the taxpayer
Documents Required for Filing ITR-3 (AY 2025–26)
To file ITR-3 accurately and smoothly, keep the following documents ready:
Personal Identification
PAN Card – Mandatory for filing and refund processing.
Aadhaar Card – Required for verification; must be linked to PAN.
Income Proof
Form 16 – For salaried individuals showing salary and TDS details.
Form 26AS – Annual tax credit statement showing TDS, TCS, and advance tax.
Business/Professional Income
Profit & Loss Account and Balance Sheet
Income & Expense Records – Related to business or professional activity.
Investment & Deduction Proofs
Under Section 80C: LIC, PPF, ELSS, tuition fees, etc.
Under Section 80D: Health insurance premiums
Donations: Receipts for claims under Sections 80G, 35(1)(ii), etc.
Banking & Property
Bank Statements – For the relevant financial year.
Interest Certificates – From savings accounts, FDs, or home loans.
Rental Agreements – If claiming HRA or rental income.
Municipal Tax Receipts – For property tax claims.
Property Deeds – For purchase/sale of real estate.
Capital Gains
Capital Gains Statements – From brokers for shares or mutual funds.
Foreign Assets
Schedule FA Details – Information on foreign assets and income.
Audit Reports (if applicable)
Required under Section 44AB for:
Businesses with turnover over ₹1 crore.
Professionals with gross receipts over ₹50 lakhs.
ITR-V Form
Used for return verification if not e-verified via Aadhaar OTP or EVC
How to File and Verify ITR-3
You can e-file ITR-3 on the Income Tax Department’s e-filing portal, and verify using any of the following methods:
Digital Signature Certificate (DSC)
Electronic Verification Code (EVC)
Aadhaar OTP
Manually: Send signed ITR-V by post to:
Centralized Processing Centre,
Income Tax Department,
Bengaluru – 560500, Karnataka
Due Dates for Filing ITR-3 (AY 2025–26)
July 31, 2025 – For individuals and businesses not requiring an audit
October 31, 2025 – For individuals or entities requiring audit under Section 44AB
(Dates subject to official notification by CBDT)
Penalties for Late or Non-Filing
Section 234F (Late Filing Fees):
₹5,000 if filed after due date but before December 31.
₹1,000 if total income is below ₹5 lakh.
Section 234A (Interest on Tax Due):
1% interest per month on outstanding tax from the due date till payment.
Other Consequences:
Losses (except house property) can’t be carried forward.
Penalty under Section 270A up to 50% for under-reporting income.
Audit Requirements for ITR-3
Section 44AB – Tax Audit
Mandatory if:
Business turnover exceeds ₹1 crore.
Professional receipts exceed ₹50 lakhs.
Presumptive Taxation Clause: Audit also needed if profit <6% (digital) or <8% (non-digital) of turnover.
Section 92E – Transfer Pricing Audit
Required if involved in international or specified domestic transactions.
Audit Report Filing
Use Form 3CA-3CD (for companies) or Form 3CB-3CD (for others).
File electronically on the IT portal before the ITR filing due date
How to Download the ITR-3 Form
Go to ‘Downloads’ section.
Select Assessment Year 2025–26 and choose ITR-3.
Choose format: Excel, Java Utility, or JSON.
Download and install necessary utilities to start filing
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