In a significant change to the tax filing calendar, the due date for submitting ITR-3 and ITR-4 returns in non-audit cases has been extended to August 31, 2026. Previously, such returns had to be filed by July 31. This extension provides additional time for taxpayers to gather and reconcile detailed financial information, though tax experts warn against delaying preparations given the increased reporting requirements. The move comes as part of the government's strengthened data-driven approach to tax compliance and verification, with authorities requiring expanded information on investment gains, trading activity, bank account holdings and deduction-related claims.
The Income-Tax Department has officially enabled Excel Utility for ITR-3 form for taxpayers on its e-filing portal for financial year 2025-26 (FY26) i.e. assessment year 2026-27 (AY27). According to reports from Mint, the tax department's official account announced on social media platform X that online filing and Excel Utility for ITR-3 for AY27 is now enabled on the e-Filing portal. The authority had earlier in May also released Excel Utility for the ITR-1 (Sahaj), ITR-2, and ITR-4 (Sugam) online forms. ITR-3 is specifically designed for individuals and HUFs who earn income from profits and gains of business or profession, making it essential for freelancers, consultants, doctors, lawyers, traders, or proprietors. As per Mint, the move comes shortly after the release of Excel utilities for ITR-1 and ITR-4 on May 15, and for ITR-2 on May 27, thereby completing the rollout of key return-filing utilities for the assessment year.
The revised filing framework for ITR-3 introduces several key improvements for taxpayers. The ITR-3 form is designed for individuals and HUFs whose primary earnings arise from business activities or professional services, covering both audited and non-audited cases. According to NDTV Profit, the form accommodates a wide range of income streams including salary, pension, rental income, capital gains and income from other sources. Earnings from partnership firms, including remuneration and interest, are also covered when taxed as profits from business or profession. The new filing framework simplifies capital gains reporting by removing the requirement to distinguish between transactions carried out before and after July 23, 2024, while introducing a new reporting schedule for F&O traders. Taxpayers claiming certain deductions under Sections 80G and 80U will be required to furnish more detailed information, and the form features a new field capturing tax audit information under Section 44BBD. A new section has been introduced for reporting F&O turnover and related income details, and additional information is now required for claiming deductions under Sections 80G, 80GGC, 80DD, and 80U. In cases where accounts are required to be audited under Section 44AB, it is necessary to electronically authenticate the return under digital signature.
According to Mint, the tax department has notified all ITR forms for AY27/FY26. ITR-1 is meant for resident individual taxpayers with total income up to ₹50 lakh, salaried individuals with one house property, and income from other sources. ITR-2 can be filed by individual taxpayers or Hindu Undivided Families (HUFs) who are not eligible to file ITR-1. ITR-3 is for individual taxpayers and HUFs engaged in business or profession requiring elaborate books of accounts. ITR-4 (Sugam) can be filed by resident individuals/HUFs/firms with income not exceeding ₹50 lakh during FY, and ITR-5 is for firms, LLPs, AOPs, BOIs, and AJPs with presumptive income from business or profession. As per Mint, ITR-3 applies to individuals and Hindu Undivided Families (HUFs) having income from the profits and gains of a business or profession, including both audit and non-audit cases. The form also applies where taxpayers have income such as remuneration, commission, bonus, interest or salary received from a partnership firm. No persons other than individuals & HUF are eligible to file ITR-3 Form, as individuals & HUFs not having income by way of business or profession or partnership firm are not eligible to file the ITR-3 Form. ITR-3 vs ITR-4: Difference in both - Both forms are for business and professional income, and people often confuse them. ITR-4 (Sugam) is for those who opt for presumptive taxation under Section 44AD, 44ADA, or 44AE, with total income up to ₹50 lakh. Income is taken as a fixed percentage of turnover, so detailed books are not needed. ITR-3 is for everyone else with business or professional income, those who keep regular books, earn above ₹50 lakh, report an actual loss, or fall outside the presumptive rules.
Tax experts provide mixed advice on the optimal filing timeline for ITR-3, with the extended deadline creating additional considerations. CA Chirag Chauhan from CA Chauhan & Company recommends waiting another week to ensure AIS/TIS data for the last quarter is updated before filing, as most companies have released Form 16 but AIS/TIS updates are not complete in all cases. However, CA Pratibha Goyal from PD Gupta & Company advises that taxpayers should start filing if proper data is available instead of waiting for the last date, noting that CAs are typically prepared to handle the pressure and high-income taxpayers should file well in time to avoid interest on unpaid tax. The main advantage of early filing is timely refund processing, as the later you file, the longer it takes for refunds to be credited to bank accounts. For ITR-3 specifically, the deadline varies based on audit obligations - individuals and entities not requiring an audit must complete filing by August 31, 2026, while audited cases have until October 31, 2026. Taxpayers must ensure timely filing and carefully verify income details and supporting information before submitting their ITR to avoid notices, refund delays, or compliance issues.
