Taxpayers and tax professionals can now begin preparing their income tax returns for Assessment Year (AY) 2026–27, as the Income Tax Department has enabled both the online filing facility and the Excel Utility for Form ITR-3 on the e-Filing portal.
The latest development is expected to provide significant relief to taxpayers who are required to file ITR-3, particularly professionals, proprietors, business owners, partners in firms, and individuals earning income from business or profession.
Who Should File ITR-3?
ITR-3 is applicable to individuals and Hindu Undivided Families (HUFs) having income from:
- Proprietary business or profession
- Partnership firms (excluding LLPs)
- Capital gains
- Multiple house properties
- Foreign assets or foreign income
- Investments in unlisted equity shares
- Other sources of income such as interest, dividends, and family pension
The form is generally used by taxpayers whose income profile is more complex than those eligible for ITR-1 or ITR-2.
Online Filing and Excel Utility Now Live
With the activation of the online filing mode and downloadable Excel Utility, taxpayers can now:
- Prepare and validate their returns offline through the utility.
- Upload the generated JSON file on the e-Filing portal.
- File returns directly through the online mode without downloading any software.
- Verify tax computations, capital gains, business income, and other disclosures before submission.
The release of the utility also allows tax professionals to begin large-scale return preparation work for clients.
Important for Business Owners and Professionals
The availability of ITR-3 assumes greater significance this year because AY 2026–27 is the first assessment year governed by the new provisions introduced under the Income Tax Act, 2025. Taxpayers must ensure that all disclosures, deductions, and reporting requirements are accurately reflected while filing returns.
Professionals are advised to reconcile:
- Books of accounts
- TDS credits appearing in Form 26AS and Annual Information Statement (AIS)
- Advance tax payments
- Capital gains transactions
- Business and professional receipts
before filing the return.
Filing Deadline
The Income Tax Department has already extended the due date for filing income tax returns for non-audit taxpayers for AY 2026–27. Taxpayers should nevertheless avoid last-minute filing and use the newly released utility to complete compliance well in advance.
What Taxpayers Should Do Now
With ITR-3 now enabled, eligible taxpayers should immediately begin gathering financial records, reconciling tax credits, and reviewing income disclosures. Early filing helps avoid portal congestion, enables quicker processing of returns, and facilitates faster refunds where applicable.
The activation of ITR-3 marks another key milestone in the ongoing rollout of return filing utilities for AY 2026–27 and is expected to accelerate the tax filing season for businesses and professionals across the country.
