CBDT Notifies Updated ITR-3 Applicable for AY 2025–26

Notification no. 41/2025, dated 30-04-2025

The Central Board of Direct Taxes (CBDT) has released the updated Income Tax Return Form ITR-3 for the Assessment Year 2025–26, applicable for reporting income earned during the Previous Year 2024–25 (i.e., from 1st April 2024 to 31st March 2025).

1. Applicability of ITR-3

ITR-3 is applicable to individuals and Hindu Undivided Families (HUFs) who –

• Have income from business or profession (including those who do not opt for presumptive taxation schemes), and
• May also have income from salary, house property, capital gains, or other sources, provided they are not eligible to file returns in ITR-1, ITR-2, or ITR-4.

2. Nature of Changes

While the overall structure and reporting framework of ITR-3 remain largely consistent with the previous version, the changes in the new form are primarily consequential in nature—intended to align with legislative amendments brought in through the Finance (No. 2) Act, 2024.

These updates include –

• Incorporation of new reporting requirements, where applicable, based on revised provisions of the Income-tax Act.
• Modifications in existing schedules or fields to reflect changes in tax treatment, exemptions, or deduction limits.
• Additional disclosures, where mandated, to enhance transparency and facilitate automated processing and compliance verification.

3. Key Takeaways

• Taxpayers using ITR-3 must ensure that they review the latest changes, especially if impacted by any Finance Act 2024 amendments.
• It is advisable to consult a tax professional or refer to the detailed instructions released by CBDT for proper interpretation and accurate filing.
• The updated form is now available for e-filing on the Income Tax portal, and taxpayers are encouraged to keep their documentation ready well in advance of the filing deadline.

Click Here To Read The Full Notification