A complete guide to ITR-3 for individuals and HUFs with business income. Learn about eligibility, updates, and step-by-step filing procedures.
ITR-3 is the income tax return for individuals and HUFs who earn income from a business or profession that is not covered under the presumptive scheme. It also applies when you have capital gains, more than one house property, or income as a partner in a firm, and it requires maintaining books of account where applicable.
Comprehensive Guide to Income Tax Return Form 3: Eligibility, Structure, and Filing Procedures
Income Tax Return (ITR) Form 3 is designed for individuals and Hindu Undivided Families (HUFs) who derive income from profits and gains generated through a business or profession. This particular form is extensive, allowing assessees to report various income types.
Understanding ITR Form 3
ITR-3 is the designated income tax return form for individuals and HUFs with income from a business or profession. It covers a broad spectrum of income sources, making it a comprehensive form for taxpayers involved in such activities.
Eligibility Criteria for Filing ITR-3
ITR-3 is applicable to:
- Individuals and HUFs.
- Those operating a business under a presumptive taxation scheme.
- Professionals.
- Individuals with income from dividends or interest.
- Freelancers or consultants.
- Those earning income from Futures & Options (F&O) trading, intraday trading, or other share trading activities.
- This return may also encompass income from house property, salaries or pensions, capital gains, and other miscellaneous sources.
- Individuals receiving remuneration from a partnership firm (excluding Limited Liability Partnerships).
Who Should Not File ITR-3
ITR-3 is not suitable for:
- Any entities other than individuals and HUFs.
- Individuals and HUFs who do not have income from a business, profession, or a partnership firm.
- Conversely, taxpayers eligible to file ITR-1, ITR-2, or ITR-4 are generally not required to file ITR-3.
Important Due Dates for ITR-3 Filing
For non-audit cases, the deadline to file ITR-3 for Financial Year (FY) 2024-25 (Assessment Year (AY) 2025-26) has been extended to September 16, 2025. For cases requiring a tax audit, the due date is October 31, 2025.
Significant Updates to ITR-3 for AY 2025-26
Several key changes have been introduced in the ITR-3 form for the Assessment Year 2025-26:
Capital Gain Classification (Before/After July 23, 2024)
Taxpayers are now required to segment capital gains based on amendments in the Finance Act, 2024, distinguishing between gains accrued before and after July 23, 2024. This change aims to clarify tax calculations for capital gains.
Capital Loss on Share Buyback (After October 1, 2024)
New provisions permit claiming capital losses on share buybacks, provided the corresponding dividend income is reported under “Income from Other Sources.” This rule is effective from October 1, 2024, enhancing clarity for such transactions.
Asset and Liability Reporting Threshold Increased
The disclosure limit for assets and liabilities in ITR-3 has been raised to a total income exceeding ₹1 crore. Taxpayers surpassing this threshold must provide comprehensive details of their assets and liabilities. This revision promotes greater transparency for high-income earners.
Inclusion of Section 44BBC (Cruise Business)
The ITR-3 form now incorporates presumptive taxation provisions under Section 44BBC, as per the Budget 2024, for cruise business operators. Non-resident cruise operators will find 20% of their passenger carriage receipts deemed as taxable profits. This addition standardizes reporting for cruise businesses.
Enhanced Deduction Reporting
Detailed reporting is now mandated for various deductions, including those under Section 80C and Section 10(13A) (House Rent Allowance). Taxpayers claiming these deductions must provide more comprehensive information to ensure eligibility and minimize reporting errors, thereby improving compliance accuracy.
TDS Section Code Requirement
A new requirement involves reporting the Tax Deducted at Source (TDS) section code within the Schedule-TDS of the ITR-3 form. This facilitates better tracking of TDS and simplifies reconciliation for both taxpayers and tax authorities.
How to Submit ITR-3 Form
Taxpayers can electronically file Form ITR-3 using two primary methods:
- Digital Signature: Submit the return electronically with a digital signature. An acknowledgment will be sent to the registered email address.
- Electronic Data Transmission with Verification: Transmit data electronically and then submit the signed verification form (ITR-V). This form must be sent to the Income Tax Department’s Centralized Processing Centre (CPC) office in Bangalore within 30 days of e-filing. Alternatively, the ITR-V can be downloaded and verified online.
Step-by-Step Guide to e-File ITR-3 on the Income Tax Portal
Here’s how to file your ITR-3 through the official Income Tax e-Filing Portal:
- Log In to the Portal: Access the Income Tax e-Filing Portal and sign in using your Permanent Account Number (PAN) as the User ID and your password.
- Navigate to Income Tax Return: From the “e-File” menu, select “Income Tax Return” from the dropdown. Choose the relevant Assessment Year and opt for “Online” filing mode.
- Initiate New Filing: Click “Start New Filing” and specify your taxpayer status (e.g., Individual, HUF).
- Select ITR Form: Choose the appropriate ITR Form (ITR-3, if it applies to your income profile).
- State Reason for Filing: Click “Let’s Get Started” and indicate the reason for submitting your return.
- Choose Applicable Schedules: Select all schedules that correspond to your various sources of income.
- General Information and Regime Selection: Begin with the “General Information” section, verify any pre-filled data, and choose your preferred tax regime (Old or New). Remember that opting out of or into the old regime may require submitting Form 10IEA.
- Complete Relevant Schedules: Fill out all applicable schedules with your income details, then proceed to the “Verification” stage.
- Review, Correct, and Submit: Carefully review your return for any errors and make necessary corrections. Pay any self-assessment tax due, and then submit your ITR.
Structure of the ITR-3 Form for AY 2024-25 and AY 2025-26
The ITR-3 form is structured into several parts and schedules:
Part A
- Part A-GEN: General information, including the nature of the business.
- Part A-BS: Balance Sheet of the proprietary business or profession as of March 31, 2021.
- Part A-Manufacturing Account: Manufacturing Account for the financial year 2020-21.
- Part A-Trading Account: Trading Account for the financial year 2020-21.
- Part A-P&L: Profit and Loss account for the Financial Year 2020-21.
- Part A-OI: Other Information (optional if not liable for audit under Section 44AB).
- Part A-QD: Quantitative Details (optional if not liable for audit under Section 44AB).
Schedules
- Schedule-S: Calculation of income under the “Salaries” head.
- Schedule-HP: Calculation of income under the “Income from House Property” head.
- Schedule BP: Calculation of income from business or profession.
- Schedule-DPM: Calculation of depreciation on plant and machinery as per the Income-tax Act.
- Schedule DOA: Calculation of depreciation on other assets as per the Income-tax Act.
- Schedule DEP: Summary of depreciation across all assets as per the Income-tax Act.
- Schedule DCG: Calculation of deemed capital gains from the sale of depreciable assets.
- Schedule ESR: Deduction under section 35 (expenditure on scientific research).
- Schedule-CG: Calculation of income under the “Capital Gains” head.
- Schedule 112A: Specific details for Capital Gains where section 112A applies.
- Schedule 116AD(1)(b)(iii)Proviso: For Non-Residents, details of Capital Gains where section 112A applies.
- Schedule-OS: Calculation of income under the “Income from Other Sources” head.
- Schedule-CYLA-BFLA: Statement of income after adjusting for current year’s losses and unabsorbed losses carried forward from previous years.
- Schedule-CYLA: Statement of income after setting off current year’s losses.
- Schedule BFLA: Statement of income after setting off unabsorbed losses brought forward from earlier years.
- Schedule CFL: Statement of losses to be carried forward to future years.
- Schedule-UD: Statement of unabsorbed depreciation.
- Schedule ICDS: Impact of Income Computation Disclosure Standards on profit.
- Schedule-10AA: Calculation of deduction under section 10AA.
- Schedule 80G: Statement of donations eligible for deduction under section 80G.
- Schedule RA: Statement of donations to research associations, etc., eligible for deduction under section 35(1)(ii), 35(1)(iia), 35(1)(iii), or 35(2AA).
- Schedule-80IA: Calculation of deduction under section 80IA.
- Schedule-80IB: Calculation of deduction under section 80IB.
- Schedule-80IC/80-IE: Calculation of deduction under section 80IC/80-IE.
- Schedule VI-A: Statement of deductions from total income under Chapter VIA.
- Schedule AMT: Calculation of Alternate Minimum Tax Payable under Section 116JC.
- Schedule AMTC: Calculation of tax credit under section 116JD.
- Schedule SPI: Statement of income from spouse, minor child, son’s wife, or any other person/association of persons to be included in the assessee’s income under Schedules-HP, BP, CG, and OS.
- Schedule SI: Statement of income chargeable to tax at special rates.
- Schedule-IF: Information regarding partnership firms where the assessee is a partner.
- Schedule EI: Statement of income not included in total income (exempt incomes).
- Schedule PTI: Pass-through income details from a business trust or investment fund as per sections 116UA, 116UB.
- Schedule TPSA: Secondary adjustment to transfer price as per section 92CE(2A).
- Schedule FSI: Details of income from outside India and applicable tax relief.
- Schedule TR: Statement of tax relief claimed under section 90, section 90A, or section 91.
- Schedule FA: Statement of Foreign Assets and income from any source outside India.
- Schedule 5A: Information on income apportionment between spouses governed by Portuguese Civil Code.
- Schedule AL: Assets and Liabilities at the end of the year (applicable if total income exceeds ₹50 lakhs).
- Schedule tax deferred on ESOP: Information on tax deferred on Employee Stock Option Plans (ESOPs) received from eligible start-ups as per Section 80-IAC.
- Schedule GST: Information regarding turnover or gross receipt reported for Goods and Services Tax (GST).
Final Parts
- Part B-TI: Calculation of Total Income.
- Part B-TTI: Calculation of tax liability on total income.
- Verification: Final declaration and verification.
Business Codes for ITR Forms
This table provides various business and professional codes to be used in ITR forms:
| Sector | Sub-Sector | Code |
|---|---|---|
| AGRICULTURE, ANIMAL HUSBANDRY & FORESTRY | Growing and manufacturing of tea | 1001 |
| Growing and manufacturing of coffee | 1002 | |
| Growing and manufacturing of rubber | 1003 | |
| Market gardening and horticulture specialities | 1004 | |
| Raising of silkworms and production of silk | 1005 | |
| Raising of bees and production of honey | 1006 | |
| Raising of poultry and production of eggs | 1007 | |
| Rearing of sheep and production of wool | 1008 | |
| Rearing of animals and production of animal products | 1009 | |
| Agricultural and animal husbandry services | 1010 | |
| Soil conservation, soil testing and soil desalination services | 1011 | |
| Hunting, trapping and game propagation services | 1012 | |
| Growing of timber, plantation, operation of tree nurseries and conserving of forest | 1013 | |
| Gathering of tendu leaves | 1014 | |
| Gathering of other wild growing materials | 1016 | |
| Forestry service activities, timber cruising, afforestation and reforestation | 1016 | |
| Logging service activities, transport of logs afforestation and reforestation within the forest | 1017 | |
| Other agriculture, animal husbandry or forestry activity n.e.c | 1018 | |
| FISH FARMING | Fishing on a commercial basis in inland waters | 2001 |
| Fishing on a commercial basis in the ocean and coastal areas | 2002 | |
| Fish farming | 2003 | |
| Gathering of marine materials such as natural pearls, sponges, coral etc. | 2004 | |
| Services related to marine and freshwater fisheries, fish hatcheries and fish farms | 2005 | |
| Other Fish farming activity n.e.c | 2006 | |
| MINING AND QUARRYING | Mining and agglomeration of hard coal | 3001 |
| Mining and agglomeration of lignite | 3002 | |
| Extraction and agglomeration of peat | 3003 | |
| Extraction of crude petroleum and natural gas | 3004 | |
| Service activities incidental to oil and gas extraction excluding surveying | 3005 | |
| Mining of uranium and thorium ores | 3006 | |
| Mining of iron ores | 3007 | |
| Mining of non-ferrous metal ores, except uranium and thorium ores | 3008 | |
| Mining of gemstones | 3009 | |
| Mining of chemical and fertilizer minerals | 3010 | |
| Mining of quarrying of abrasive materials | 3011 | |
| Mining of mica, graphite and asbestos | 3012 | |
| Quarrying of stones (marble/granite/dolomite), sand and clay | 3013 | |
| Other mining and quarrying | 3014 | |
| Mining and production of salt | 3016 | |
| Other mining and quarrying n.e.c | 3016 | |
| MANUFACTURING | Production, processing and preservation of meat and meat products | 4001 |
| Production, processing and preservation of fish and fish products | 4002 | |
| Manufacture of vegetable oil, animal oil and fats | 4003 | |
| Processing of fruits, vegetables and edible nuts | 4004 | |
| Manufacture of dairy products | 4005 | |
| Manufacture of sugar | 4006 | |
| Manufacture of cocoa, chocolates and sugar confectionery | 4007 | |
| Flour milling | 4008 | |
| Rice milling | 4009 | |
| Dal milling | 4010 | |
| Manufacture of other grain mill products | 4011 | |
| Manufacture of bakery products | 4012 | |
| Manufacture of starch products | 4013 | |
| Manufacture of animal feeds | 4014 | |
| Manufacture of other food products | 4016 | |
| Manufacturing of wines | 4016 | |
| Manufacture of beer | 4017 | |
| Manufacture of malt liquors | 4018 | |
| Distilling and blending of spirits, production of ethyl alcohol | 4019 | |
| Manufacture of mineral water | 4020 | |
| Manufacture of soft drinks | 4021 | |
| Manufacture of other non-alcoholic beverages | 4022 | |
| Manufacture of tobacco products | 4023 | |
| Manufacture of textiles (other than by handloom) | 4024 | |
| Manufacture of textiles using handlooms (khadi) | 4025 | |
| Manufacture of carpet, rugs, blankets, shawls etc. (other than by hand) | 4026 | |
| Manufacture of carpet, rugs, blankets, shawls etc. by hand | 4027 | |
| Manufacture of wearing apparel | 4028 | |
| Tanning and dressing of leather | 4029 | |
| Manufacture of luggage, handbags and the like saddler and harness | 4030 | |
| Manufacture of footwear | 4031 | |
| Manufacture of wood and wood products, cork, straw and plaiting material | 4032 | |
| Manufacture of paper and paper products | 4033 | |
| Publishing, printing and reproduction of recorded media | 4034 | |
| Manufacture of coke oven products | 4035 | |
| Manufacture of refined petroleum products | 4036 | |
| Processing of nuclear fuel | 4037 | |
| Manufacture of fertilizers and nitrogen compounds | 4038 | |
| Manufacture of plastics in primary forms and of synthetic rubber | 4039 | |
| Manufacture of paints, varnishes and similar coatings | 4040 | |
| Manufacture of pharmaceuticals, medicinal chemicals and botanical products | 4041 | |
| Manufacture of soap and detergents | 4042 | |
| Manufacture of other chemical products | 4043 | |
| Manufacture of man-made fibers | 4044 | |
| Manufacture of rubber products | 4045 | |
| Manufacture of plastic products | 4046 | |
| Manufacture of glass and glass products | 4047 | |
| Manufacture of cement, lime and plaster | 4048 | |
| Manufacture of articles of concrete, cement and plaster | 4049 | |
| Manufacture of Bricks | 4050 | |
| Manufacture of other clay and ceramic products | 4051 | |
| Manufacture of other non-metallic mineral products | 4052 | |
| Manufacture of pig iron, sponge iron, Direct Reduced Iron etc. | 4053 | |
| Manufacture of Ferro alloys | 4054 | |
| Manufacture of Ingots, billets, blooms and slabs etc. | 4055 | |
| Manufacture of steel products | 4056 | |
| Manufacture of basic precious and nonferrous metals | 4057 | |
| Manufacture of non-metallic mineral products | 4058 | |
| Casting of metals | 4059 | |
| Manufacture of fabricated metal products | 4060 | |
| Manufacture of engines and turbines | 4061 | |
| Manufacture of pumps and compressors | 4062 | |
| Manufacture of bearings and gears | 4063 | |
| Manufacture of ovens and furnaces | 4064 | |
| Manufacture of lifting and handling equipment | 4065 | |
| Manufacture of other general purpose machinery | 4066 | |
| Manufacture of agricultural and forestry machinery | 4067 | |
| Manufacture of Machine Tools | 4068 | |
| Manufacture of machinery for metallurgy | 4069 | |
| Manufacture of machinery for mining, quarrying and constructions | 4070 | |
| Manufacture of machinery for processing of food and beverages | 4071 | |
| Manufacture of machinery for leather and textile | 4072 | |
| Manufacture of weapons and ammunition | 4073 | |
| Manufacture of other special purpose machinery | 4074 | |
| Manufacture of domestic appliances | 4075 | |
| Manufacture of office, accounting and computing machinery | 4076 | |
| Manufacture of electrical machinery and apparatus | 4077 | |
| Manufacture of Radio, Television, communication equipment and apparatus | 4078 | |
| Manufacture of medical and surgical equipment | 4079 | |
| Manufacture of industrial process control equipment | 4080 | |
| Manufacture of instruments and appliances for measurements and navigation | 4081 | |
| Manufacture of optical instruments | 4082 | |
| Manufacture of watches and clocks | 4083 | |
| Manufacture of motor vehicles | 4084 | |
| Manufacture of body of motor vehicles | 4085 | |
| Manufacture of parts & accessories of motor vehicles & engines | 4086 | |
| Building & repair of ships and boats | 4087 | |
| Manufacture of railway locomotive and rolling stocks | 4088 | |
| Manufacture of aircraft and spacecraft | 4089 | |
| Manufacture of bicycles | 4090 | |
| Manufacture of other transport equipment | 4091 | |
| Manufacture of furniture | 4092 | |
| Manufacture of jewellery | 4093 | |
| Manufacture of sports goods | 4094 | |
| Manufacture of musical instruments | 4095 | |
| Manufacture of games and toys | 4096 | |
| Other manufacturing n.e.c. | 4097 | |
| Recycling of metal waste and scrap | 4098 | |
| Recycling of non- metal waste and scrap | 4099 | |
| ELECTRITY, GAS AND WATER | Production, collection and distribution of electricity | 5001 |
| Manufacture and distribution of gas | 5002 | |
| Collection, purification and distribution of water | 5003 | |
| Other essential commodity service n.e.c | 5004 | |
| CONSTRUCTION | Site preparation works | 6001 |
| Building of complete constructions or parts- | 6002 | |
| civil contractors | ||
| Building installation | 6003 | |
| Building completion | 6004 | |
| Construction and maintenance of roads, rails, bridges, tunnels, ports, harbour, runways etc. | 6005 | |
| Construction and maintenance of power plants | 6006 | |
| Construction and maintenance of industrial plants | 6007 | |
| Construction and maintenance of power transmission and telecommunication lines | 6008 | |
| Construction of water ways and water reservoirs | 6009 | |
| Other construction activity n.e.c. | 6010 | |
| REAL ESTATE AND RENTING SERVICES | Purchase, sale and letting of leased buildings (residential and non-residential) | 7001 |
| Operating of real estate of self-owned buildings (residential and non-residential) | 7002 | |
| Developing and sub-dividing real estate into lots | 7003 | |
| Real estate activities on a fee or contract basis | 7004 | |
| Other real estate/renting services n.e.c | 7005 | |
| RENTING OF MACHINERY | Renting of land transport equipment | 8001 |
| Renting of water transport equipment | 8002 | |
| Renting of air transport equipment | 8003 | |
| Renting of agricultural machinery and equipment | 8004 | |
| Renting of construction and civil engineering machinery | 8005 | |
| Renting of office machinery and equipment | 8006 | |
| Renting of other machinery and equipment n.e.c. | 8007 | |
| Renting of personal and household goods n.e.c. | 8008 | |
| Renting of other machinery n.e.c. | 8009 | |
| WHOLESALE AND RETAIL TRADE | Wholesale and retail sale of motor vehicles | 9001 |
| Repair and maintenance of motor vehicles | 9002 | |
| Sale of motor parts and accessories- wholesale and retail | 9003 | |
| Retail sale of automotive fuel | 9004 | |
| General commission agents, commodity brokers and auctioneers | 9005 | |
| Wholesale of agricultural raw material | 9006 | |
| Wholesale of food & beverages and tobacco | 9007 | |
| Wholesale of household goods | 9008 | |
| Wholesale of metals and metal ores | 9009 | |
| Wholesale of household goods | 9010 | |
| Wholesale of construction material | 9011 | |
| Wholesale of hardware and sanitary fittings | 9012 | |
| Wholesale of cotton and jute | 9013 | |
| Wholesale of raw wool and raw silk | 9014 | |
| Wholesale of other textile fibres | 9016 | |
| Wholesale of industrial chemicals | 9016 | |
| Wholesale of fertilizers and pesticides | 9017 | |
| Wholesale of electronic parts & equipment | 9018 | |
| Wholesale of other machinery, equipment and supplies | 9019 | |
| Wholesale of waste, scrap & materials for recycling | 9020 | |
| Retail sale of food, beverages and tobacco in specialized stores | 9021 | |
| Retail sale of other goods in specialized stores | 9022 | |
| Retail sale in non-specialized stores | 9023 | |
| Retail sale of textiles, apparel, footwear, leather goods | 9024 | |
| Retail sale of other household appliances | 9025 | |
| Retail sale of hardware, paint and glass | 9026 | |
| Wholesale of other products n.e.c | 9027 | |
| Retail sale of other products n.e.c | 9028 | |
| Commission Agents (For intermediaries facilitating transactions in goods/services.) | 09029 | |
| HOTELS, RESTAURANTS AND HOSPITALITY SERVICES | Hotels – Star rated | 10001 |
| Hotels – Non-star rated | 10002 | |
| Motels, Inns and Dharmshalas | 10003 | |
| Guest houses and circuit houses | 10004 | |
| “Dormitories and hostels at educational institutions” | 10005 | |
| Short stay accommodations n.e.c. | 10006 | |
| Restaurants – with bars | 10007 | |
| Restaurants – without bars | 10008 | |
| Canteens | 10009 | |
| Independent caterers | 10010 | |
| Casinos and other games of chance | 10011 | |
| Other hospitality services n.e.c. | 10012 | |
| TRANSPORT & LOGISTICS SERVICES | Travel agencies and tour operators | 11001 |
| Packers and movers | 11002 | |
| Passenger land transport | 11003 | |
| Air transport | 11004 | |
| Transport by urban/sub-urban railways | 11005 | |
| Inland water transport | 11006 | |
| Sea and coastal water transport | 11007 | |
| Freight transport by road | 11008 | |
| Freight transport by railways | 11009 | |
| Forwarding of freight | 11010 | |
| Receiving and acceptance of freight | 11011 | |
| Cargo handling | 11012 | |
| Storage and warehousing | 11013 | |
| “Transport via pipelines (transport of gases,liquids, slurry and other commodities)” | 11014 | |
| Other Transport & Logistics services n.e.c | 11016 | |
| POST AND TELECOMMUNICATION SERVICES | Post and courier activities | 12001 |
| Basic telecom services | 12002 | |
| Value added telecom services | 12003 | |
| Maintenance of telecom network | 12004 | |
| Activities of the cable operators | 12005 | |
| Other Post & Telecommunication services n.e.c | 12006 | |
| FINANCIAL INTERMEDIATION SERVICES | Commercial banks, saving banks and discount houses | 13001 |
| Specialised institutions granting credit | 13002 | |
| Financial leasing | 13003 | |
| Hire-purchase financing | 13004 | |
| Housing finance activities | 13005 | |
| Commercial loan activities | 13006 | |
| Credit cards | 13007 | |
| Mutual funds | 13008 | |
| Chit fund | 13009 | |
| Investment activities | 13010 | |
| Life insurance | 13011 | |
| Pension funding | 13012 | |
| Non-life insurance | 13013 | |
| Administration of financial markets | 13014 | |
| Stock brokers, sub-brokers and related activities | 13016 | |
| Financial advisers, mortgage advisers and brokers | 13016 | |
| Foreign exchange services | 13017 | |
| Other financial intermediation services n.e.c. | 13018 | |
| COMPUTER AND RELATED SERVICES | Software development | 14001 |
| Other software consultancy | 14002 | |
| Data processing | 14003 | |
| Database activities and distribution of electronic content | 14004 | |
| Other IT enabled services | 14005 | |
| BPO services | 14006 | |
| Cyber café | 14007 | |
| Maintenance and repair of office, accounting and computing machinery | 14008 | |
| Computer training and educational institutes | 14009 | |
| Other computation related services n.e.c. | 14010 | |
| RESEARCH AND DEVELOPMENT | Natural sciences and engineering | 16001 |
| Social sciences and humanities | 16002 | |
| Other Research & Development activities n.e.c. | 16003 | |
| PROFESSIONS | Legal profession | 16001 |
| Accounting, book-keeping and auditing profession | 16002 | |
| Tax consultancy | 16003 | |
| Architectural profession | 16004 | |
| Engineering and technical consultancy | 16005 | |
| Advertising | 16006 | |
| Fashion designing | 16007 | |
| Interior decoration | 16008 | |
| Photography | 16009 | |
| Auctioneers | 16010 | |
| Business brokerage | 16011 | |
| Market research and public opinion polling | 16012 | |
| Business and management consultancy activities | 16013 | |
| Labour recruitment and provision of personnel | 16014 | |
| Investigation and security services | 16016 | |
| Building-cleaning and industrial cleaning activities | 16016 | |
| Packaging activities | 16017 | |
| Secretarial activities | 16018 | |
| Medical Profession | 16019 | |
| Film Artist | 16020 | |
| Social Media Influencers (For YouTubers, Instagrammers, TikTokers, etc.) | 16021 | |
| Other professional services n.e.c. | 16019 | |
| EDUCATION SERVICES | Primary education | 17001 |
| Secondary/ senior secondary education | 17002 | |
| Technical and vocational secondary/ senior secondary education | 17003 | |
| Higher education | 17004 | |
| Education by correspondence | 17005 | |
| Coaching centers and tuitions | 17006 | |
| Other education services n.e.c. | 17007 | |
| HEALTH CARE SERVICES | General hospitals | 18001 |
| Speciality and super speciality hospitals | 18002 | |
| Nursing homes | 18003 | |
| Diagnostic centers | 18004 | |
| Pathological laboratories | 18005 | |
| Independent blood banks | 18006 | |
| Medical transcription | 18007 | |
| Independent ambulance services | 18008 | |
| Medical suppliers, agencies and stores | 18009 | |
| Medical clinics | 18010 | |
| Dental practice | 18011 | |
| Ayurveda practice | 18012 | |
| Unani practice | 18013 | |
| Homeopathy practice | 18014 | |
| Nurses, physiotherapists or other paramedical practitioners | 18016 | |
| Veterinary hospitals and practice | 18016 | |
| Medical education | 18017 | |
| Medical research | 18018 | |
| Practice of other alternative medicine | 18019 | |
| Other healthcare services | 18020 | |
| SOCIAL AND COMMUNITY WORK | Social work activities with accommodation (orphanages and old age homes) | 19001 |
| Social work activities without accommodation (Creches) | 19002 | |
| Industry associations, chambers of commerce | 19003 | |
| Professional organizations | 19004 | |
| Trade unions | 19005 | |
| Religious organizations | 19006 | |
| Political organizations | 19007 | |
| Other membership organizations n.e.c. (rotary clubs, book clubs and philatelic clubs) | 19008 | |
| Other Social or community service n.e.c | 19009 | |
| CULTURE AND SPORT | Motion picture production | 20001 |
| Film distribution | 20002 | |
| Film laboratories | 20003 | |
| Television channel productions | 20004 | |
| Television channels broadcast | 20005 | |
| Video production and distribution | 20006 | |
| Sound recording studios | 20007 | |
| Radio – recording and distribution | 20008 | |
| Stage production and related activities | 20009 | |
| Individual artists excluding authors | 20010 | |
| Literary activities | 20011 | |
| Other cultural activities n.e.c. | 20012 | |
| Circuses and race tracks | 20013 | |
| Video Parlours | 20014 | |
| News agency activities | 20016 | |
| Library and archives activities | 20016 | |
| Museum activities | 20017 | |
| Preservation of historical sites and buildings | 20018 | |
| Botanical and zoological gardens | 20019 | |
| Operation and maintenance of sports facilities | 20020 | |
| Activities of sports and game schools | 20021 | |
| Organization and operation of indoor/outdoor sports and promotion and production of sporting events | 20022 | |
| Other sporting activities n.e.c. | 20023 | |
| Other recreational activities n.e.c. | 20024 | |
| OTHER SERVICES | Hair dressing and other beauty treatment | 21001 |
| Funeral and related activities | 21002 | |
| Marriage bureaus | 21003 | |
| Pet care services | 21004 | |
| Sauna and steam baths, massage salons etc. | 21005 | |
| Astrological and spiritualists’ activities | 21006 | |
| Private households as employers of domestic staff | 21007 | |
| Other services n.e.c. | 21008 | |
| Speculative Trading (For intraday equity traders) | 21009 | |
| F&O Trading(For Futures & Options traders in stocks, commodities, currencie) | 21010 | |
| Buying & Selling of Shares Frequent delivery-based trading | 21011 | |
| EXTRA TERRITORIAL ORGANISATIONS AND BODIES | Extra territorial organizations and bodies (IMF, World Bank, European Commission etc.) | 22001 |
| CO- OPERATIVE SOCIETY ACTIVITES | Banking/Credit Facilities to its members | 23001 |
| Cottage Industry | 23002 | |
| Marketing of Agricultural produce grown by its members | 23003 | |
| Purchase of Agricultural Implements, seeds, livestock or other articles intended for agriculture for the purpose of supplying to itsmembers. | 23004 | |
| Processing, without the aid of power, of the agricultural Produce of its members. | 23005 | |
| Collective disposal of Labour of its members | 23006 | |
| Fishing or allied activities for the purpose of supplying to its members. | 23007 | |
| Primary cooperative society engaged in supplying Milk, oilseeds, fruits or vegetables raised or grown by its members to Federal cooperative society engaged in supplying Milk, oilseeds, fruits or vegetables/Government or local authority/Government Company / corporation established by or under a Central, State or Provincial Act | 23008 | |
| Consumer Cooperative Society Other than specified in 80P(2a) or 80P(2b) | 23009 | |
| Other Cooperative Society engaged in activities Other than specified in 80P(2a) or 80P(2b) | 23010 | |
| Interest/Dividend from Investment in other co-operative society | 23011 | |
| Income from Letting of godowns / warehouses for storage, processing / facilitating the marketing of commodities | 23012 | |
| Others | 23013 | |
| Federal milk co-operative society | 23014 |
Significant Updates to ITR-3 for AY 2023-24 and AY 2024-25
The following revisions were integrated into the ITR-3 form for FY 2022-23 and remain applicable for FY 2023-24:
- Virtual Digital Asset (VDA) Reporting: A new Schedule VDA has been introduced for separate reporting of income from cryptocurrencies or other VDAs. If VDA income is classified as capital gains, a quarterly breakdown is required under the Capital Gains Schedule. Each VDA transaction must be reported with sale and purchase dates.
- New Tax Regime Opt-Out Inquiry: The updated ITR-3 includes questions to ascertain if the taxpayer opted out of the New Tax Regime in prior years.
- FII/FPI Disclosure: Foreign Institutional Investors (FII) and Foreign Portfolio Investors (FPI) are now required to provide their SEBI registration number for additional disclosure.
- Balance Sheet Reporting Update: Minor adjustments in balance sheet reporting require advances received from specific individuals under Section 40A(2)(b) of the Income Tax Act, and others, to be categorized under the ‘Advances’ heading within the Source of Funds.
- Intraday Trading Reporting: Turnover and income generated from intraday trading must now be reported under the newly created ‘Trading Account’ section.
Downloading the ITR-3 Utility
You can download the official ITR-3 utility tool directly from the Income Tax Portal.
Frequently Asked Questions (FAQ)
Who should file ITR-3?
ITR-3 is for individuals and HUFs with income from a proprietary business or profession, and it also covers those with capital gains, more than one house property, or partnership income.
What is the difference between ITR-3 and ITR-4?
ITR-4 is for presumptive business income under Sections 44AD, 44ADA or 44AE, while ITR-3 is for regular business or professional income where actual profits and books of account are reported.
Do I need to maintain books of account for ITR-3?
Yes, where the law requires it. Businesses and professionals filing ITR-3 generally have to maintain books of account and, in some cases, get them audited.
Can salaried individuals file ITR-3?
A salaried person files ITR-3 only if they also have business or professional income. If they only have salary and other simple income, ITR-1 or ITR-2 is usually appropriate.
