ITR Filing FY25: Who Should File ITR-3, Due Dates, Applicability and Key Changes

ITR-3 is the income tax return form designed for individuals and Hindu Undivided Families (HUFs) who earn income from profits and gains of business or profession in FY25.

Unlike simpler forms like ITR-1 or ITR-2, this form covers a wider range of incomes, making it suitable for taxpayers engaged in business, freelancing, consultancy, or professional services.

Let’s take a look at the key details of ITR-3 for FY25, including eligibility, due dates, changes, and the filing process.

Who Should File ITR-3?

• Individuals and HUFs carrying on business or professional activities that require maintaining books of accounts.
• Salaried individuals who also have income from side businesses, freelancing, or consultancy work.
• Professionals like doctors, lawyers, chartered accountants, and architects earning from their practice.

If you do not have any business or professional income, you are not eligible to file under ITR-3.

Due Date for Filing FY25 ITR-3

• Non-audit cases: Extended to 15th September 2025 (from the earlier deadline of 31st July).
• Audit cases: 31st October 2025.

Taxpayers should ensure timely filing to avoid penalties or interest charges.

Key Changes in ITR-3 for AY 2025-26

A major update in the ITR-3 form is the introduction of a capital gains split:

• Taxpayers must now separately report capital gains before and after 23rd July 2024.
• This change is linked to amendments in the Finance Act, 2024, ensuring clarity on how gains during different timeframes are taxed.
• It helps streamline capital gain reporting by categorising them based on the law changes.

Read More: ITR Filing FY2025: Under-Reporting High-Value Transactions – Here Is What It Could Cost You.

FY25 ITR-3 in Action: Example of a Salaried + Freelance Taxpayer

Imagine Rohit, a salaried employee at an IT company, who also runs a freelance graphic design business on weekends. His salary income alone could be filed under ITR-1.

However, since he earns from freelancing (business income), he must use ITR-3.

 Additionally, Rohit invested in stocks and sold some shares before and after 23rd July 2024. With the new rules, he must now categorise his capital gains accordingly while filing.

This example shows how ITR-3 applies to individuals with multiple sources of income, not just full-time business owners.

Read More: How to Report STCG on Shares in ITR for AY 2025–26?

Conclusion

The ITR-3 form is crucial for individuals and HUFs with business or professional income. With new updates for capital gain reporting, extended deadlines, and online filing available, taxpayers should carefully assess their income sources before choosing the correct form. Filing under the right ITR ensures compliance and helps avoid legal or financial complications.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.