Income Tax Department Enables Online Filing for ITR-3: Who Benefits and How to File
The Income Tax Department has launched a major update for high-income taxpayers and professionals by enabling the online filing of the ITR-3 form. This move is set to simplify the tax return process for individuals earning from multiple income sources, including stock trading, cryptocurrency, freelancing, and business.
Launched on July 30, 2025, this facility will particularly benefit individuals with income exceeding ₹50 lakh annually or those involved in professional or business activities. The department’s announcement brings a welcome relief for many taxpayers who earlier had to rely on offline or third-party utilities for ITR-3 submissions.
The ITR-3 form is designed for individuals and Hindu Undivided Families (HUFs) who earn income under the category of:
Business or profession
Intraday or F&O stock trading
Unlisted share investments
Freelancing or consulting work
Cryptocurrency gains
Rental income
Dividends or interest from various sources
It is also applicable for those who are partners in firms or members of HUFs engaged in business activities.
Until now, online e-filing was mainly limited to simpler ITR forms such as ITR-1 and ITR-2. Taxpayers filing ITR-3 had to navigate complex offline utilities, which posed difficulties and delays. By enabling direct online filing, the department has significantly eased the process for professionals, consultants, and market traders.
This new functionality also supports individuals dealing in cryptocurrencies, an area that previously caused confusion due to its categorization under capital gains or business income.
There are seven ITR forms available, and choosing the correct one is crucial for proper tax compliance. Here's a brief overview of who should file which form:
| ITR Form | Suitable For |
|---|---|
| ITR-1 | Individuals earning up to ₹50 lakh from salary/pension, one house property, and other income |
| ITR-2 | Those earning over ₹50 lakh, with capital gains, multiple properties, foreign assets/income, or as company directors/shareholders |
| ITR-3 | Professionals, business owners, stock/crypto traders, and partners in firms |
| ITR-4 | Residents or HUFs with presumptive income up to ₹50 lakh under Sections 44AD, 44ADA, 44AE |
| ITR-5 | Partnership firms, LLPs, Association of Persons (AOP), or Body of Individuals (BOI) |
| ITR-6 | Companies not claiming exemption under Section 11 |
| ITR-7 | Individuals or institutions filing under special provisions (Sections 139(4A), 139(4B), etc.) |
Source: ClearTax
This update is especially useful for:
Freelancers with high revenue from multiple clients
Crypto investors who were unsure how to report gains
Traders operating in F&O or intraday segments
Business owners with diverse revenue streams
For such individuals, tax filing often involved professional help due to the complexities of the form. Now, they can file directly on the e-filing portal, making the process faster, transparent, and more accessible.
Before filing ITR-3, ensure that:
Your PAN and Aadhaar are linked
Bank details are updated for refund processing
All income sources and deductions are accurately declared
Any incorrect declaration may lead to penalties or delays in refund processing.
With the introduction of online filing for ITR-3, the Income Tax Department is making a strong push towards simplifying compliance for high-income individuals and professionals. If you fall into this category, now is the right time to log in to incometax.gov.in and file your return smoothly before the deadline.
