The Income Tax Department has now released the Excel Utility as well as Online Filing Facility for ITR-3 for Assessment Year 2026-27. This is an important development for taxpayers who were eagerly waiting for the release of ITR-3 in order to file their Income Tax Returns.
Earlier, the department had already enabled ITR-1, ITR-2 and ITR-4 in both online and offline modes. However, a large number of taxpayers including proprietors, professionals, traders, freelancers and persons having business income were unable to file their returns as the ITR-3 utility was not available.
With the release of ITR-3, most individual taxpayers can now proceed with filing their Income Tax Returns for AY 2026-27.
Visit www.incometax.gov.in
Now ITR 3 can be filled till 31st August in case of persons having income from business and profession and not required to get their accounts audited
Who Should File ITR-3?
ITR-3 is generally applicable to individuals and HUFs having income from:
- Proprietorship business
- Professional practice
- Freelancing activities
- Trading in shares and derivatives (F&O)
- Commission income
- Multiple sources of income along with business income
Taxpayers having income under the head “Profits and Gains of Business or Profession” generally file ITR-3 unless they opt for presumptive taxation and are eligible to file ITR-4.
Who Should File ITR-1?
ITR-1 (Sahaj) can generally be filed by resident individuals having:
- Salary or pension income
- One house property
- Other income such as interest
- Total income within prescribed limits and subject to specified conditions
Watch Complete Video Guide on ITR-1 Filing
Who Should File ITR-2?
ITR-2 is generally applicable to individuals and HUFs who do not have business income but may have:
- Capital gains from shares, mutual funds or property
- Multiple house properties
- Foreign assets or foreign income
- Income exceeding limits prescribed for ITR-1
Watch Complete Video Guide on ITR-2, ITR-4 Filing
Who Should File ITR-3?
ITR-3 is applicable to taxpayers having business or professional income including:
- Proprietors
- Professionals
- Consultants
- Freelancers
- Traders in shares and derivatives
- Persons having business income along with salary, capital gains or house property income
Important Documents to Keep Ready Before Filing ITR
Before filing your return, taxpayers should keep the following documents ready:
- PAN Card
- Aadhaar Card
- Form 16
- Form 26AS
- Annual Information Statement (AIS)
- Taxpayer Information Summary (TIS)
- Bank Account Details
- Capital Gain Statements
- Interest Certificates
- Business Financial Statements (if applicable)
Check AIS, TIS and Form 26AS Before Filing
Taxpayers should carefully verify the information available in:
- AIS (Annual Information Statement)
- TIS (Taxpayer Information Summary)
- Form 26AS
These reports contain information relating to:
- Interest income
- Dividend income
- Share transactions
- Mutual fund transactions
- Property transactions
- TDS deducted
- High-value financial transactions
Any mismatch between these reports and the Income Tax Return may result in notices, defective returns or additional compliance requirements.
E-Verification is Mandatory
Merely filing the return is not sufficient. After filing the return, taxpayers must complete the e-verification process within the prescribed time.
If the return is not verified, it may be treated as invalid under the Income-tax Act.
Taxpayers can e-verify their returns through:
- Aadhaar OTP
- Net Banking
- Bank Account EVC
- Demat Account EVC
The release of ITR-3 for AY 2026-27 has brought much-needed relief to business owners, professionals and other taxpayers who were waiting to file their returns. With ITR-1, ITR-2, ITR-3 and ITR-4 now available in both online and offline modes, a large majority of taxpayers can proceed with return filing.
Before filing the return, ensure that AIS, TIS and Form 26AS are properly reviewed and after filing, complete the e-verification process to avoid the return being treated as invalid.
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