What Amendments have been introduced in ITR-3 for AY 2025-26?

Here are mentioned few key amendments mentioned in the ITR-3 form notification:

• Capital Gains Separation Based on July 23, 2024: A new section has been added in the Capital Gains schedule to separately show gains made before and after July 23, 2024. This change was made because of updates in the Finance Act 2024.
• Capital Loss on Share Buyback Allowed Post October 1, 2024: Starting October 1, 2024, if you have a loss from the buyback of listed shares, you can claim it only if you have also reported the related dividend income under “Income from Other Sources.”
• Asset and Liability Reporting Threshold Doubled: If someone’s total income is more than Rs. 1 crore, up from the earlier Rs 50 lakh threshold, then he/she will need to inform about assets and liabilities.
• Detailed Reporting of Deductions Under Sections 80C, 10(13A), etc.: It is compulsory to fill in all granular information in the form like investments under 80C, house rent allowance (10(13A)), and others. The motive is the make the process of verification harder and to ensure compliance.
• TDS Section Code in Schedule-TDS: According to the new introduced format, it is compulsory to disclose the TDS Section code (e.g., 194A, 194H, etc.) in the Schedule-TDS, enhancing traceability of tax credits.

Who Should File ITR-3?

ITR-3 filing is for individuals and Hindu Undivided Families (HUFs), who have their income under the head ‘Profits and gains of business or profession’, these include:

• Proprietors
• Freelancers or professionals such as doctors, lawyers, or consultants.
• Directors in companies (However, individuals who are earning income from the firm in the form of salary or interest are not included—those should use ITR-2)
• Partners of Firms
• Taxpayers with income from house property, capital gains, and other sources can go for ITR-3 if they own a business or professional income.

When is ITR Filing 2025 Anticipated to Begin?

As the income tax department has released ITR-1, ITR-3 and ITR-4 forms for the assessment year 2025-26 (income earned in the financial year 2024-25). However, income tax return filing is yet to begin. It is anticipated that ITR filing will begin from next week, as per experts. According to them, ITR filing should begin now in order to meet the July 31 due date.

The due date of filing ITR is July 31, 2025, that do not require an audit. For individuals who require an audit, the due date is October 31, 2025.