ITR-3 for AY 2026-27: Complete Guide

While the country buzzes about the new Income Tax Act, 2025, it is crucial to remember: For the income earned between April 1, 2025, and March 31, 2026 (FY 2025-26), filing is still under the Income Tax Act, 1961. However, deadlines and forms have evolved.

Here is everything you need to know to file ITR-3 correctly this year.

1. What is ITR-3?

ITR-3 is the Income Tax Return form for Individuals and HUFs having income from “Profits and Gains of Business or Profession” and not opting for presumptive taxation (ITR-4).

In simple terms, if you run a business or profession and need to report detailed expenses, profit & loss, and balance sheet, this is your form.

2. Key Changes in ITR-3 for AY 2026-27

  • New F&O Reporting: Separate reporting for Futures & Options turnover and income.
  • Crypto/VDA Disclosures: Enhanced reporting for virtual digital assets.
  • Political Donations (80GGC): Mandatory transaction details and IFSC code.
  • New Deadline (Non-Audit): Extended to August 31, 2026.

3. Who Should File ITR-3?

  • Business owners and professionals (doctors, lawyers, shop owners)
  • Partners in firms
  • Company directors
  • Unlisted equity shareholders
  • High turnover cases requiring audit
  • F&O traders and intraday traders
  • Those claiming business losses

Who Cannot File?

  • Companies, LLPs, partnership firms
  • Salaried individuals without business income

4. Important Deadlines

Category Due Date
ITR-3 (Non-Audit) August 31, 2026
ITR-3 (Audit Cases) October 31, 2026
Belated / Revised March 31, 2027

If audit is required, Form 3CD must be submitted by September 30, 2026.

5. Step-by-Step Guide to File ITR-3

Step 1: Prepare Financials

  • Balance Sheet
  • P&L Account
  • Audit Report (if applicable)

Step 2: Login & Select Mode

Login to Income Tax portal → e-File → File ITR → Select AY 2026-27.

Step 3: Choose ITR-3

Select Individual and confirm business income.

Step 4: Fill Schedule BP

Enter turnover, expenses, and profit details.

Step 5: Tax Regime Selection

  • Default: New Regime
  • Old Regime: File Form 10-IEA

Step 6: Verification

Validate, pay tax, and e-verify via Aadhaar OTP.

6. Practical Example

Arjun (Freelancer)

Income: ₹25 Lakh | Expenses: ₹8 Lakh | F&O Loss: ₹1 Lakh

ITR-4: Income = ₹12.5 Lakh (no loss adjustment)

ITR-3: Income = ₹16 Lakh (loss adjusted)

Conclusion: ITR-3 helps in accurate reporting and loss carry forward.

7. FAQs

Q1: Can salaried individuals file ITR-3?
Yes, only if they also have business income.

Q2: Is Balance Sheet mandatory?
Generally yes, unless using “No Accounts Case”.

Q3: Can I switch tax regimes yearly?
No, business filers have limited switching options.

Q4: Late filing penalty?
₹5,000 (₹1,000 if income below ₹5 Lakh).

Q5: Is audit required for F&O loss?
Depends on turnover and income conditions.