Filing income tax just got easier for professionals and business owners. The Income Tax Department has now enabled the ITR-3 form for online filing on its official e-filing portal for the assessment year 2025-26. This means taxpayers earning from business or profession can now submit their returns entirely online, without needing to upload any offline files.
– Business Owners: If you run your own business or are self-employed.
– Professionals: Doctors, lawyers, consultants, etc., earning income from profession.
– Partners in a Firm: If you’re a partner in a firm (excluding LLPs filing separately).
– Company Directors: If you’re a director in a company.
– Investors in Unlisted Shares: Holding unlisted equity shares? ITR-3 is required.
– Those with Capital Gains: If you’ve sold property, stocks, mutual funds, etc.
– Foreign Income or Assets: Includes foreign bank accounts or investments.
– Rental + Salary + Other Income Combo: Especially if your total income exceeds Rs 50 lakh.
– When your income doesn’t fit into ITR-1, ITR-2, or ITR-4.
What’s New in ITR-3 for AY 2025–26
If you’ve sold equity mutual funds or listed shares on or after July 23, 2024, be prepared to pay more in taxes. The long-term capital gains (LTCG) on such sales will now be taxed at 12.5 per cent, while short-term capital gains (STCG) will be taxed at 20 per cent.
In contrast, if the sale happened before this date, the older, lower tax rates of 10 per cent for LTCG and 15 per cent for STCG will still apply. Taxpayers are now required to report these gains separately, distinguishing between assets sold before and after July 23. As for deadlines, those not requiring an audit must file their returns by September 15, 2025. For individuals or businesses that need an audit, the ITR filing deadline is October 31, with the audit report due by September 30.
Where Can You File ITR-3 Online?
If you’re eligible to file ITR-3, you can log in to the official Income Tax e-filing portal at incometax.gov.in and complete the entire process digitally. Experts point out that due to the recent changes in the capital gains tax rules for FY 2024-25, the ITR forms had to be significantly updated to reflect the new tax structure.
