The Central Board of Direct Taxes (CBDT) has notified significant updates in the ITR-3 Form for AY 2025-26, applicable to individuals and Hindu Undivided Families (HUFs) earning income from business or profession. These changes aim to improve compliance, incre…
The Central Board of Direct Taxes (CBDT Official ↗) has notified significant updates in the ITR-3 Form Official ↗ for AY 2025-26, applicable to individuals and Hindu Undivided Families (HUFs) earning income from business or profession. These changes aim to improve compliance, increase transparency, and support the digitization of the Indian tax system.
Let’s explore the major updates and compare them with the previous year's ITR-3.
| Feature | AY 2024-25 | AY 2025-26 |
|---|---|---|
New Tax Regime (Sec 115BAC) | Limited reporting | Detailed options with Form 10-IEA mandatory |
Residential Status | Basic categories | Expanded per Finance Act 2020 & 2021 |
Audit Details | General info | Now includes UDIN, acknowledgment no., date |
Presumptive Tax (44AD/ADA ) | ₹2 Cr / ₹50 Lakh | ₹3 Cr / ₹75 Lakh if cash receipts ≤ 5% |
Seventh Proviso (139(1) ) | Basic checkboxes | Requires exact amounts and category selection |
Unlisted Shares & Directorships | Optional fields | Mandatory disclosure with PAN, DIN, share details |
Foreign Establishments | Not emphasized | Specific fields for PE, SEP, jurisdiction of residence |
ICDS Adjustments | Mentioned briefly | Separate fields for deviations and disclosures |
IFSC Units & FPI Details | Not included | New reporting for IFSC income and SEBI registration |
Example: A professional who opted out in AY 2024-25 must now indicate whether they wish to continue in AY 2025-26, and provide Form 10-IEA proof.
Includes nuanced residential conditions such as:
If return is filed voluntarily under 7th proviso to Section 139(1), the following details must be provided:
New turnover limits:
These updates reflect the government's drive for deeper data reporting, greater transparency, and integration with the digital economy. The stricter audit and residency disclosures especially help combat tax avoidance and enforce global compliance (BEPS norms).
A: Individuals or HUFs having income from business or profession, excluding those eligible for ITR-1 or ITR-2.
A: Yes, if the taxpayer has business/profession income. It must be filed before the due date.
A: Yes, IFSC income earned in foreign exchange may be exempt under certain provisions.
The ITR-3 Form for AY 2025-26 comes packed with vital updates for professionals, business owners, and high-net-worth individuals. Ensure timely compliance and seek expert guidance if needed, especially for matters related to Form 10-IEA, audit disclosures, or residency.
This article is published by TaxQue (ARB FinTech LLP) for general informational, educational, and business guidance purposes only. Tax laws, GST rules, MCA circulars, and judicial precedents are subject to frequent statutory revisions. This content does not constitute formal individualized tax, accounting, or legal counsel.
Comments are moderated. Only English and Hindi comments from verified Indian users are published.
Freelancers earn professional income, not salary, so the return is different: a different form, the option of presumptive tax, TDS from Indian clients, and often foreign income too…
A scrutiny notice under section 143(2) means your return has been picked for a detailed assessment: the department will check specific claims, or your whole return, against evidenc…
A TDS mismatch notice means the tax credit you claimed in your return doesn't match what the department's records (Form 26AS and AIS) show was deducted in your name. The department…
From company registration and GST filings to annual MCA audits and tax planning, TaxQue provides complete consulting solutions for startups and enterprises.
Get expert tax tips, GST updates & compliance guides delivered to your inbox.
🔒 No spam. Unsubscribe anytime.
