Ultimate Guide to Filing ITR‑3 for AY 2025‑26 (FY 2024‑25)

Jul 31, 2025

—

by

in Finance and Accounting, Tally ERP 9 Training

For Professionals, Business Owners, Traders, and High-Income Earners

📌 What is ITR-3 and Who Should File It?

ITR‑3 is the Income Tax Return form applicable to individuals and Hindu Undivided Families (HUFs) who earn income from:

Business or profession (sole proprietorship, freelancing, etc.)
Capital gains from shares, mutual funds, real estate
Income from other sources (interest, dividend, etc.)
Income from F&O, intraday trading, or cryptocurrency
Foreign income or foreign assets
Unlisted shares
Are directors in a company
Partners in firms

✅ What’s New in ITR‑3 for AY 2025‑26

Mandatory profession codes for influencers, traders, agents, etc.
Split capital gains before/after 23 July 2024 for proper tax treatment
Expanded asset/liability declaration if income exceeds ₹1 crore
Integration of Form 10‑IEA to opt-in or opt-out of new tax regime
Enhanced validation for TDS section codes and deductions

🧾 Documents Required

PAN, Aadhaar
Form 16, if salaried
Form 26AS and AIS (Annual Information Statement)
Trading reports (if investing or F&O)
Bank statements
Rental income proof
Investment proofs (80C, 80D, etc.)
Balance sheet, P&L, cash flow (for business/profession)
Foreign asset details, if applicable
Books of accounts or audit reports, if required

🖥️ How to File ITR‑3: Step-by-Step Process

👉 Option 1: Filing Online on e-Filing Portal

Log in to https://www.incometax.gov.in
Go to e-File → Income Tax Return → File Now
Choose:
- Assessment Year: 2025–26
- ITR Form: ITR‑3
- Filing type: Original/Revised/Belated
Select filing mode: Online
Provide:
- General info, address, bank details
- Nature of business/profession (enter correct code)
- Income from salary (if any), house property, capital gains
- Trading income (show in “Business & Profession” → F&O)
- Other income (interest, dividends, etc.)
Declare deductions (80C, 80D, etc.)
Validate TDS/TCS auto-filled details from 26AS/AIS
Attach balance sheet and profit & loss statement (mandatory)
Select Old or New Tax Regime via Form 10‑IEA
Preview & validate return
Click Submit and then e-verify within 30 days

👉 Option 2: Filing via Excel/Java Utility

Download the ITR‑3 Excel utility from the portal
Fill all income, deduction, and financial data offline
Generate JSON file
Upload JSON at e-Filing portal
E-verify the return

💡 Key Filing Tips

Use correct nature of business code (e.g., F&O traders: 21010, influencers: 16021)
Capital gains must be split as before/after 23 July 2024
Business P&L and Balance Sheet are mandatory
Choose tax regime wisely — Form 10-IEA is mandatory for switching
Ensure books of account and audit are maintained if turnover > ₹1 crore or required under section 44AB

💼 Five Filing Scenarios Based on Income Bracket

1. 🧑‍💼 Freelancer earning ₹12 LPA (No Capital Gains)

Income from profession
Opt for Presumptive under 44ADA (if eligible) or maintain books
Can file ITR-3 with simple P&L
May claim 80C, 80D deductions

2. 📈 F&O Trader with ₹18 LPA turnover (Profit ₹3.2 Lakh)

Business income from derivatives
Must maintain books
Can opt for 44AD if conditions met, else audit needed if loss/low profit
File ITR‑3, show capital gains if other investments exist

3. 🏢 Director in Private Company with ₹25 LPA Income (Salary + Shares)

Salary: ₹12 LPA, capital gains: ₹5 Lakh, other sources: ₹8 LPA
File under ITR‑3 due to Directorship + capital gains
Show balance sheet, foreign assets (if any), rental income
Mandatory for ITR‑3, even if company director has no business income

4. 🌐 Consultant with ₹60 LPA Global Income

Foreign income + Indian income
Disclose foreign bank accounts, assets, investments
Must report conversion values
May fall under audit and detailed scrutiny
ITR-3 required with Schedule FA & FSI

5. 💰 High Net Worth Individual (₹1.5 Cr income, Multiple Sources)

Business, capital gains, F&O, dividend, rental, and other income
Must disclose assets/liabilities in Schedule AL
Mandatory audit and financial statements
Advanced filing with deep review before submission

⏳ Important Deadlines

Type of Taxpayer	Due Date
Normal filing (no audit)	15 September 2025
Audit required	31 October 2025
Transfer pricing case	30 November 2025
Belated / Revised Returns	31 December 2025

❌ Late Filing Penalty

₹5,000 if filed after due date (₹1,000 if income < ₹5 lakh)
Loss of carry-forward of losses
Interest under section 234A/234B/234C
Risk of notices or scrutiny

✅ Conclusion

Filing ITR‑3 may feel complex, but with proper planning and clear documentation, it becomes manageable. Whether you’re a trader, freelancer, or high-income professional, staying compliant with ITR‑3 ensures peace of mind and long-term financial clarity.