The ITR‑3 form is meant for Individuals and Hindu Undivided Families (HUFs) earning income from business or profession, and who are not eligible to file ITR‑1, ITR‑2, or ITR‑4.
This guide will help you understand the non‑audit limits, rules, deadlines, and recent changes, making the filing process easier and more compliant.
1. What Is ITR‑3 and Who Should File It?
ITR‑3 is used by taxpayers having income from business or profession, including freelancers, traders (F&O or intraday), partners in firms, and those earning from multiple sources such as house property, capital gains, salary, and interest.
You cannot use ITR‑3 if you are eligible for ITR‑1, ITR‑2, or ITR‑4.
2. Non‑Audit vs. Audit — The Limits
A tax audit under Section 44AB is required if:
• Business turnover exceeds ₹1 crore (₹10 crore if at least 95% transactions are digital).
• Professional receipts exceed ₹50 lakh.
• Profits under presumptive taxation (Sections 44AD, 44ADA) are below limits.
If none of these apply, you can file ITR‑3 without audit. However, note that certain benefits like carrying forward losses will not be available in non‑audit cases.
3. Filing Deadlines for AY 2025‑26
For FY 2024‑25 (AY 2025‑26):
• Non‑audit ITR‑3 deadline: **15th September 2025** (extended from 31st July).
• Audit‑required cases: 31st October 2025.
4. Key Rules and Disclosures
The ITR‑3 form now includes:
• Split of capital gains before and after 23rd July 2024 (Finance Act 2024 change).
• Asset and liability reporting if income > ₹1 crore.
• More detailed deductions reporting.
• New TDS section code requirements.
• Mandatory MSME payment delay reporting, online gaming income, capital gains account details, and dividends from IFSC/business trusts.
5. Frequently Asked Questions (FAQs)
Q1: Can I file ITR‑3 without audit if turnover exceeds ₹1 crore?
No. A tax audit is mandatory if turnover exceeds ₹1 crore (₹50 lakh for professionals).
Q2: What’s the non‑audit deadline this year?
For AY 2025‑26, it’s 15th September 2025.
Q3: Can I carry forward losses if I file without audit?
No, you cannot carry forward losses in a non‑audit case.
Q4: Why split capital gains before/after 23rd July 2024?
To comply with Finance Act 2024 changes in taxation.
Q5: Must I report assets if income is below ₹1 crore?
No, it’s only required if income exceeds ₹1 crore.
In summary, ITR‑3 allows taxpayers with business or professional income to file accurate returns.
Understanding the limits for non‑audit cases, deadlines, and updated disclosures will help you stay compliant and avoid penalties.
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