Online ITR-3 Filing for AY 2025-26: Complete Guide for Traders, Businesses & Professionals

The Income Tax Department of India has just opened the gates for Online ITR-3 Filing for Assessment Year 2025-26 (Financial Year 2024-25). And if you’re someone earning from share trading, a business, or unlisted shares—or maybe all of the above—you’ll want to stick around, because this one’s for you.

Let’s break it down in a way that doesn’t feel like decoding tax jargon. Whether you’re a salaried employee dabbling in the stock market, a self-employed professional, or a full-time business owner, ITR-3 might be the form you need to file your returns. And yes, it’s now live on the e-filing portal.

What’s New: Online ITR-3 Filing Goes Live

On July 30, 2025, the Income Tax Department made a major announcement that impacts a whole lot of taxpayers:

“Kind Attention Taxpayers! Income Tax Return Form of ITR-3 is now enabled for filing through online mode.”

That’s right—until now, you may have only been able to fill out and upload XMLs manually. But from now on, you can directly file Online ITR-3 Filing just like ITR-1 and ITR-2.

Who Needs to File ITR-3?

So who exactly falls under the umbrella of ITR-3? Great question.

According to Chartered Accountant Abhishek Soni, co-founder of Tax2Win, ITR-3 is mandatory for:

• Individuals or Hindu Undivided Families (HUFs) involved in a business or profession
• Those with income from futures and options (F&O) trading
• Directors in companies
• People who’ve held unlisted equity shares during the financial year
• Those who are partners in firms

If you have income from:

• Salary or pension
• House property (one or more)
• Capital gains
• Foreign assets/income
• Other sources
• If your total income exceeds ₹50 lakhs

Even non-residents (NRIs) and resident but not ordinarily resident (RNOR) individuals are eligible if they match any of the above.

Not Eligible for ITR-1, ITR-2, or ITR-4? ITR-3 Is for You

Let’s put it simply: If you earn money from business or professional activities and you don’t qualify for ITR-1, ITR-2, or ITR-4 (Sugam), then Online ITR-3 Filing is your go-to solution.

Think of it as the big brother of tax forms—it covers more ground but comes with a few more details to fill in.

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

Now, here’s the spicy part. The ITR-3 form this year isn’t just the same old version in a new dress. It comes with seven major updates, and if you’re filing Online ITR-3 Filing or through the Excel utility, you need to know them.

Capital Gains Reporting—Split Before and After July 23, 2024

Thanks to the Finance Act 2024, you now need to report capital gains separately for transactions before and after July 23, 2024. That means if you sold a property or shares during this split timeline, be prepared to input your numbers in two different sections.

Share Buyback: Capital Losses Can Be Claimed

Did a company buy back your shares after October 1, 2024? You can now claim capital losses on that transaction—only if the corresponding dividend income is declared under ‘income from other sources’.

Finally, a fair deal for investors!

Reporting Limit for Assets and Liabilities Increased to ₹1 Crore

Previously, if your income crossed ₹50 lakh, you had to declare your assets and liabilities. That threshold has now been doubled to ₹1 crore. A welcome relief for middle-level taxpayers who were caught in between.

Section 44BBC Now Included—Calling All Cruise Business Operators

If you run a cruise ship business (yes, it’s niche), there’s a new Section 44BBC for you. This presumptive taxation scheme simplifies tax filing for cruise operators and has now found a place in the ITR-3 form.

Enhanced Deduction Reporting Under 80C and 10(13A)

Taxpayers claiming deductions under Section 80C (investments, insurance, etc.) and Section 10(13A) (house rent allowance) will now have to report them in greater detail. The form asks for more specific entries rather than lump sums.

Declaration of Tax Regime via Form 10-IEA

Here’s where things get technical but important. You now have to declare whether you’ve opted into or out of the new tax regime using Form 10-IEA for the previous year (AY 2024-25).

Planning to switch regimes this year? You’ll have to clearly state your intent in the current Online ITR-3 Filing.

Bifurcation of Indexed Cost for Land or Building Sale

Selling real estate before July 23, 2024? You’ll now need to separately mention:

• Cost of acquisition
• Cost of improvement

This change helps the Income Tax Department apply the right indexation benefits and verify capital gains more accurately.

Bonus Change: TDS Section Code Now Mandatory

While filling in your Schedule-TDS, you’ll now have to mention the specific TDS section code. This helps avoid confusion about the nature of tax deductions and streamlines cross-verification.

Why These Changes Matter

Let’s face it—filing taxes isn’t anyone’s idea of fun. But these updates make it a bit more transparent, accurate, and flexible, especially if you fall into the high-income or investment-heavy categories.

If you’re into stocks, own multiple houses, or have business partners, Online ITR-3 Filing is no longer optional—it’s your ticket to staying compliant.

How to File ITR-3 Online? A Quick Walkthrough

Ready to dive in? Here’s a quick step-by-step:

1. Visit https://www.incometax.gov.in
2. Log in using your PAN/Aadhaar and password
3. Go to ‘e-File’ > ‘Income Tax Returns’ > ‘File Income Tax Return’
4. Select AY 2025-26, and choose ITR-3
5. Choose Online Mode
6. Follow the prompts, enter your income, deductions, and taxes paid
7. Review and verify using OTP (Aadhaar/EVC)
8. Done and dusted.

Tips to Make the Process Smoother

• Keep your Form 26AS and AIS/TIS handy
• Don’t forget to reconcile your capital gains with broker reports
• If you’re confused, consider using a Chartered Accountant or a trusted tax platform

ITR-3 Has Evolved—So Should You

The new ITR-3 isn’t just another tax form—it’s a reflection of the evolving nature of income in modern India. Whether you’re day-trading on NSE, running your own gig, or managing foreign assets, this form has got space for it all.

Yes, it’s a little more complex than the one-click ITR-1, but with Online ITR-3 Filing now enabled, you don’t have to be a tax expert to handle it.

Take your time, understand the sections, and you’ll be just fine. And hey, if you’ve kept your books clean, there’s nothing to worry about.

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Conclusion

The launch of Online ITR-3 Filing for AY 2025-26 marks a major leap in simplifying compliance for professionals, business owners, and investors. The key changes—from capital gains reporting to new thresholds and tax regime declarations—signal that the tax system is getting smarter and more detailed.

While the form has more fields, it also offers more clarity and opportunity to showcase your income picture accurately. The flexibility it provides could even save you some taxes if you use it well.

If you fall under the ITR-3 category, don’t wait till the deadline. Start preparing now and take advantage of the Online ITR-3 Filing portal’s convenience. The earlier you file, the more peace of mind you’ll have. And who doesn’t love that?

If you need help with understanding your deductions or capital gains, feel free to consult a CA or use online platforms with auto-fill features to make things a breeze.