The Income Tax (I-T) Department on Friday announced the release of the Excel Utility of ITR-3. With this update, both the Excel Utility and online filing for ITR-1 to ITR-4 are enabled on the e-Filing portal. Moreover, ITR-1, ITR-2, ITR-3 and ITR-4 for FY 2025-26 are already live.
What is ITR-3?
ITR-3 is meant for individuals and HUFs who earn income from profits and gains of business or profession. Interestingly, the last date for filing a tax return via ITR-3 is 31 August, not 31 July.
ITR-3 can be filed by anyone, from a freelancer, consultant, doctor, lawyer, trader, or proprietor. Filing through the prescribed form helps taxpayers avoid errors and reduce the risk of getting notices.
Should you file it early?
Experts recommend that file their returns as soon as they can.
“Most companies have already released their Form 16. However, AIS/TIS has not been updated in all cases. Therefore, it is recommended to wait for another week so that the data for the last quarter is also updated before you can file your return,” says CA Chirag Chauhan, founder of CA Chauhan & Company, a Mumbai-based firm.
“With ITR-3 available for filing, taxpayers having business or professional income can begin filing their returns and complete their tax compliance in a timely manner. They should start filing if proper data is available instead of waiting for last date,” advises CA Pratibha Goyal, partner, PD Gupta & Company, a Delhi-based firm.
Chauhan adds that CAs typically do not tell their clients to come later, and they are accustomed to filing these tax returns (ITR-3) before 31 July. “It is only this time that the deadline for ITR-3 has been extended till August. Otherwise, we are always prepared to handle the pressure,” he adds.
Advantages of filing returns early
One of the main advantages of filing a tax return early is that the refund can be processed on time. The later you file your , the longer it takes for the refund to be credited to your bank account.
“Those taxpayers who are in the high income bracket are advised to file their returns well on time, especially if they still have a tax liability. Those who have small liabilities (salaried employees) can still afford to wait till late because they don’t need to pay interest on unpaid tax. Moreover, filing tax returns early has another advantage – you are likely to get your tax refund (if any) on time,” adds CA Chauhan.
Disclaimer: This story is for educational purposes only. The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before making any investment decisions.
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