CBDT Notifies New ITR-3 Form for Business and Professional Income for AY 2026-27 [Read Notification]

The Central Board of Direct Taxes (CBDT) has notified the new Income Tax Return Form-3 (ITR-3) for the Assessment Year (AY) 2026-27 substitutes the existing form applicable to individuals and Hindu Undivided Families (HUFs) earning income from profits and gains of business or profession.

The form was released to the general public via a notification issued by the CBDT on 30th March, 2026 under the Income-tax (Fourth Amendment) Rules, 2026, exercising powers under Section 295 read with Section 139 of the Income-tax Act, 1961.

The amended rules shall come into effect from March 31, 2026 and shall apply to the income tax returns filed for AY 2026-27; it is enshrined within Appendix II of the Income-tax Rules, 1962.

Also Read: CBDT Introduces Revised ITR‑5 Format, Making Filing Compulsory for Firms, LLPs, AOPs & BOIs

What is the ITR-3 Form?

The ITR-3 form is specifically prescribed for individuals and Hindu Undivided Families who earn income from business or profession, including proprietary businesses. The comprehensive return form enables qualifying taxpayers to report details of their business income, financial particulars, selected tax regime, and other statutory disclosures as mandated under the Income Tax Act, 1961.

Who can file ITR-3?

• Individuals earning income from business or profession
• Hindu Undivided Families - HUFs with business or professional income
• Taxpayers required to file returns under various provisions including Section 139
• Persons that are filing returns in response to notices under Sections 142(1), 148, or 153A

The ITR-3 form covers multiple filing scenarios - including returns filed within the due date under Section 139(1), belated returns filed after the due date under Section 139(4), revised returns under Section 139(5) as well as returns submitted in response to statutory notices or other applicable provisions under the Income Tax Act, 1961.

Key Disclosure Requirements:

• Detailed personal and contact information including PAN and Aadhaar
• Nature of business and date of commencement
• Selection between old and new tax regimes with relevant declarations
• Residential status based on statutory conditions
• Reporting of high-value transactions such as:
• Deposits exceeding prescribed limits
• Foreign travel expenditure
• Electricity consumption beyond specified thresholds
• Disclosure of:
• Directorship in companies
• Partnership in firms
• Holdings in unlisted equity shares

Also Read: CBDT Notifies Revised ITR-7 for AY 2026–27

Why have the Amendments been made under the Income Tax Rules of 1962 and not 2026?

The ITR forms were notified under the Income Tax Rules, 1962 through an amendment on March 30, 2026, because they pertain to income earned during FY 2025-26, which continues to be governed by the existing framework within the Income Tax Act, 1961.

The newly notified Income Tax Rules, 2026 have come into force only on April 1, 2026, hence they cannot have retrospective application for returns pertaining to the earlier financial year. As a result, the CBDT had issued the forms in advance under the prevailing rules to ensure continuity in compliance and timely filing preparation.

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