ITR Form 3 Explained: Who Should File and What You Need to Know for AY 2025–26

With the income tax filing season for Assessment Year 2025–26 now open, many taxpayers are trying to determine which Income Tax Return (ITR) form applies to them. Among these is ITR Form 3, which is designated for individuals and Hindu Undivided Families (HUFs) with business or professional income.

Also Read: ITR Filing 2025: ITR-1 to 7 Explained — Which Income Tax Return Form is Right for You? | Republic World

Who should file ITR Form 3?

If you are an individual or HUF with income from a business or profession and are not eligible for presumptive taxation, ITR Form 3 is the appropriate form to file. This form is intended for taxpayers who have income under the head “Profits and Gains from Business or Profession,” including professionals like doctors, lawyers, architects, freelancers, and those operating proprietary businesses. It also applies to those receiving income from a partnership firm (excluding salary, interest, or remuneration).

Key requirements and filing dates

To file ITR Form 3, you’ll need to disclose detailed financials, including your balance sheet, profit and loss account, and other relevant schedules. If your income crosses the threshold for a tax audit, a report under Section 44AB must also be submitted before filing the return.

The due date for filing ITR Form 3 is July 31, 2025, if you’re not subject to audit. For those required to undergo a tax audit, the deadline is October 31, 2025. If you need to file a transfer pricing report under Section 92E, the due date extends to November 30, 2025.

Audit applicability

An audit under Section 44AB becomes mandatory if your business turnover exceeds ₹1 crore or if your professional receipts go beyond ₹50 lakh. Additionally, if you were earlier under the presumptive taxation scheme and have now opted out, audit provisions may apply.

How to file

Filing can be done through the Income Tax Department’s e-filing portal (incometax.gov.in). You can submit your return either using a Digital Signature Certificate (DSC) or by generating an Electronic Verification Code (EVC). For taxpayers needing an audit, the audit report must be uploaded before the ITR is filed.