Filing ITR-3 for AY 2025-26? Here Are 7 Major Changes You Need to Know

The Income Tax Department has introduced several important changes to the ITR-3 Excel Utility for the Assessment Year 2025–26, significantly impacting business owners, stock traders, and home loan borrowers. These updates aim to make income reporting more accurate and detailed while easing compliance for select taxpayers.

If you’re filing ITR-3 this year, here’s a breakdown of the seven key changes and how they might affect your return.

1. Income Threshold for Asset-Liability Reporting Increased to ₹1 Crore

Previously, taxpayers with total income exceeding ₹50 lakh were required to report details of their assets and liabilities. In a relief for many, the threshold has now been raised to ₹1 crore. This move simplifies the filing process for a large number of individuals with high incomes but moderate asset exposure.

Impact:
Taxpayers earning less than ₹1 crore annually no longer need to disclose personal asset and liability details in the return, reducing paperwork and complexity.

2. Capital Gains Date Classification Made Crucial

If you’ve sold any property or capital asset, the date of sale now carries more weight. For assets sold on or after July 23, 2024, different capital gains tax rules apply compared to assets sold before this date.

Why This Matters:
Capital gains will be calculated based on revised rules, making it essential to clearly mention sale dates for accurate tax computation and compliance.

3. Dividend and Buyback Income Reporting Refined

Taxpayers receiving proceeds from share buybacks must now report it as dividend income under the “Income from Other Sources” section. Additionally, losses incurred from such buybacks can only be claimed if the corresponding income is properly reported.

A new column has been added under the Capital Gains Schedule for this purpose.

What You Should Do:
Ensure buyback proceeds are recorded correctly, and cross-verify losses before claiming them.

4. Detailed Information Required for Home Loan Deductions

Claiming deductions under Section 24(b) for home loan interest now requires additional documentation. You’ll need to provide:

• Name of the bank or financial institution

• Loan sanction date

• Loan account number

• Total loan amount

• Outstanding balance

Similar documentation is now required for deductions under Sections 80E, 80EE, 80EEA, and 80EEB, which cover interest on education loans, affordable housing, and electric vehicles.

5. New Section 44BBC Added for Cruise Shipping Income

This year’s ITR-3 introduces Section 44BBC, a new provision for reporting income derived from cruise shipping operations. This aims to bring more niche income streams under scrutiny and compliance.

Applicable For:
Individuals and businesses involved in the cruise shipping industry.

6. Tax Regime Preference Must Be Declared

The updated ITR-3 form now asks whether you opted for the new tax regime in the previous year by filing Form 10-IEA. You also need to specify if you intend to continue or opt out of the new regime this year.

Pro Tip:
Evaluate the benefits of both regimes (old vs. new) before selecting one, as it directly affects your deductions and exemptions.

7. Better Clarity for Business and F&O Traders

Those involved in Futures & Options (F&O) trading, or who earn from business/profession, are expected to provide more granular information this year. While not a formal rule change, stricter scrutiny on reporting income from stock market trades is expected. Ensure accurate bookkeeping of profits, losses, and carry-forward amounts.

Summary of Key Changes in ITR-3 AY 2025-26: Change Description

Asset reporting limit raised	From ₹50 lakh to ₹1 crore
Capital gains reporting	Sale before/after July 23, 2024 must be disclosed
Buyback income	Must be declared as dividend income
Loan deductions	More details required under 24(b), 80E, etc.
New section 44BBC	For cruise shipping income
Tax regime choice	Must declare via Form 10-IEA
F&O traders	Expected to provide detailed reporting

Final Thoughts

These updates are aimed at improving transparency and accountability in tax filings, while also easing the compliance burden on small to medium taxpayers. If you fall under the ITR-3 category, it’s advisable to review these changes carefully, keep relevant documents ready, and consult a tax advisor if needed — especially if you deal with capital gains, dividends, or home loans.