ITR-3 Now Available for E-Filing: Professionals, Business Owners Can File Income Tax Return Online

The Income Tax Department has officially enabled the online filing of ITR-3, a move that comes as a relief to taxpayers who were waiting to submit their returns using this form. With the ITR-3 now live on the e-filing portal, individuals and Hindu Undivided Families (HUFs) with income from business or profession can finally proceed with their income tax return filings.

This development marks a major shift from the earlier availability, where the ITR-3 form could only be accessed through offline utility tools. As of now, taxpayers can seamlessly file their returns online. It's important to note that the deadline for filing income tax returns using ITR-3 is September 15, 2025, extended from the usual July 31 date.

Who Should Use ITR-3?

The ITR-3 form is specifically designed for:

• Professionals such as doctors, lawyers, and consultants

• Individuals involved in business activities

• Partners in a firm (other than LLPs where ITR-5 applies)

• Taxpayers earning from speculative activities, such as:

  • Intraday stock trading

  • Futures & Options (F&O) trading

  • Commodity or currency trading

Additionally, individuals who:

• Own more than one house property

• Have capital gains

• Hold assets outside India

• Earn income from both business and other sources

must file their return using ITR-3.

Special Cases: Presumptive Taxation and ITR-3

Taxpayers who have opted for presumptive taxation under Section 44AD, 44ADA, or 44AE but wish to declare income below the prescribed threshold (or have income exceeding those limits) are also required to file ITR-3. This allows for more detailed reporting compared to ITR-4, which is usually used under presumptive schemes.

Key Change: New Capital Gains Tax Rules in Effect

One of the critical changes taxpayers must consider while filing their ITR-3 this year involves capital gains taxation. New rules, effective from July 23, 2024, introduce different tax rates for short-term and long-term capital gains:

• Short-Term Capital Gains (STCG):

  • Sale of equity shares or mutual fund units within 12 months

  • Taxed at 20%

• Long-Term Capital Gains (LTCG):

  • Sale after 12 months

  • Taxed at 12.5%

For transactions completed before July 23, 2024:

• STCG continues to be taxed at 15%

• LTCG remains at 10%

These revised tax slabs are expected to impact investors and traders significantly, especially those dealing in mutual funds and equity markets. Hence, taxpayers are advised to evaluate their capital gains carefully before finalizing their return.

Final Words

The activation of ITR-3 on the income tax e-filing portal has simplified the return filing process for thousands of professionals and business owners. With the deadline approaching on September 15, 2025, it’s essential for eligible taxpayers to gather their financial documents, review capital gain calculations under the new regime, and ensure timely submission of their return.

Whether you’re a freelancer, a medical practitioner, or an equity trader, filing the ITR-3 accurately and on time is crucial to stay tax compliant and avoid penalties.

For more updates on tax rules, filing tips, and financial planning, stay tuned to trusted financial news sources.