CBDT Notifies Revised ITR-3 Form for AY 2025-26 [Read Order]

The Central Board of Direct Taxes (CBDT) has officially notified the revised Income Tax Return (ITR) Form ITR-3 for the Assessment Year (AY) 2025–26, through Notification No. 41/2025 dated April 30, 2025. This update comes as part of the 13th Amendment to the Income-tax Rules, 1962, and takes effect from April 1, 2025.

The ITR-3 form is applicable to individuals and Hindu Undivided Families (HUFs) having income from business or profession. The latest version introduces significant changes aimed at enhancing compliance and capturing more granular taxpayer data.

Complete Clause by Clause Checklist for Form 3CD

Among the notable additions, the revised form mandates detailed disclosures for those opting out of the new tax regime under Section 115BAC. Taxpayers must now specify whether they wish to continue opting out of the regime by submitting Form 10-IEA and provide relevant acknowledgment numbers and filing dates, particularly if the taxpayer had previously opted out in AY 2024–25.

The form also strengthens compliance requirements under Section 139(1). Taxpayers not otherwise required to file returns must now provide reasons if they are filing voluntarily under the seventh proviso. This includes disclosures on high-value transactions such as deposits exceeding ₹1 crore in current accounts, foreign travel expenditures over ₹2 lakh, or electricity bills exceeding ₹1 lakh.

Read More: Income Tax Return: Major Changes in New ITR Forms ITR-1 and ITR-4

Further, new reporting requirements have been introduced for shareholding in unlisted companies, directorships in companies, and partnership details in firms. Taxpayers are required to provide extensive details on the nature, quantity, and cost of unlisted shares held, as well as any transactions carried out during the financial year.

Complete GST Act & Rules with amendments made by financial bill, 2025, Click Here

The revised ITR-3 also aligns with audit-related provisions, requiring taxpayers to disclose whether books of accounts are maintained and audited under various sections, including 44AB and 92E. Additional schedules for presumptive income computation under Sections 44AD, 44ADA, and 44AE are also incorporated.

Taxpayers eligible to file ITR-3 are advised to review the new format closely and consult tax professionals where necessary to ensure timely and accurate compliance.

To Read the full text of the Order CLICK HERE

Support our journalism by subscribing to Taxscan premium. Follow us on Telegram for quick updates