Big Shake-Up in ITR-3 Filing! Major Changes in Excel Utility for AY 2025-26 – Don’t Miss These Updates

The excel utilities of all income tax return (ITR) forms are finally out, including IT3-2 and ITR-3 is out for indiviuals that have ti share their proof salaries, captial gains, crypto earnings and so forth, meanwhile, ITR 3 places empahsise on businesses that are required to undergotax audits and indiviauls trading in futures and options (F&O). Basically, ITR-3 is for tax payers that need to declare their income under the category of Profit and Gains fro business and profession (PGBP).

Similar to excel utilities of ITR-1, ITR-2. the ITR-3 excel utility for AY 2025-26 has undergone key updates compared to its last year version.

Also Read: Big News For Mumbakars: Govt To Give 10% Space For Self-Overhaul Project

Fresh Changes In ITR-3 Tax Forrm

The threshold for mandatory reporting of assets, and liabities has been elevated to Rs 1 crore to reduce compliance burden  for  several taxpayers. However, taxpayers will have to specify whether the transfer of a capital gain asset resulted in capital gains took place before or post July 23, 2024. This would determine  the applicable capital gains tax rates.

ITR-3  also provides for reporting of consideration received from buyback of shares post Oct 1, 2024 as dividend. It  also amakes room for corresponding cost of acquisition to be carried forward as capital losses.

ITR-3 also provides for reporting of consideration received from buyback of shares after October 1, 2024 as dividend income while allowing for corresponding cost of acquisition to be carried forward as capital losses.

The reporting requirements for virtual digital assets have been expanded under ITR-3. The Excel utility has been updates to reflect these changes in the ITR-3 form.

Key Changes In ITR-3 Exel Utility Are Relevant For Taxpayers

Section 24(b) reporting: Now you need to give detailed information about you loan—like the lender’s name, when the loan was sanctioned, the loan account number, the original loan amount, and the closing balance—if you want to claim deductions for home loan interest under Section 24(b).

Other deductions: Taxpayers must now furnish detailed information when claiming deductions under Sections 80E, 80EE, 80EEA, and 80EEB, including sanction dates and policy or certificate numbers, ensuring each deduction is fully backed by documentation. Additional fields have been introduced for more detailed disclosures under Sections 80C, 10(13A) (HRA), and others, requiring details like employer PAN or landlord details for HRA claims.

Capital gains: The forms now include segregated reporting of capital gains for transactions made before and after July 23, 2024, due to changes in indexation and taxation rules. Losses from share buybacks (post-October 1, 2024) can be claimed only if the corresponding dividend income is disclosed under "Income from Other Sources."