ITR-3 for NRIs: Eligibility, Due Date & How to File Online (AY 2026-27)

ITR-3 is used by individuals and HUFs with income from a proprietary business or profession. It handles complex financial situations and applies when the taxpayer's total income exceeds ₹50 lakhs, and they maintain regular books of accounts. It cannot be filed by individuals who are eligible to file ITR-1, ITR-2, or ITR-4. It is a comprehensive form, and hence it covers major income categories like salary or pension, VDA, foreign income and foreign assets, remuneration, etc.

The last date to file the ITR-3 form is 31st August 2026 (for non-audit cases), and 31st October 2026 (for audit cases). Moreover, the deadline to file a revised return has been extended to 31st March 2027 as per the Budget 2026 changes. Do you know that for AY 2026-27, some major changes have been made to ITR-3, including the addition and removal of various requirements. Keep reading further to know everything about ITR-3 AY 2026-27, including eligibility, new changes, deadline, and steps to file it.

What is ITR-3 for FY 2025-26?

ITR-3 is the income tax return form for individuals and Hindu Undivided Families (HUFs) who earn income from a proprietary business or profession. ITR-3 handles complex financial situations, unlike ITR-1 or ITR-2, which are designed for simpler income profiles.

ITR-3 form applies when the taxpayer maintains regular books of account and has a total income exceeding ₹50 lakhs. For AY 2026-27, which covers income earned during FY 2025-26 (April 2025 to March 2026), the ITR-3 carries various important updates that taxpayers, along with their CAs, must review carefully before filing.

Who Can and Cannot File ITR-3?

Here are the taxpayers who can and cannot file ITR-3:

Who Can File ITR-3?

You can file the ITR-3 form if you have:

• Freelancing or consultancy income
• Income from dividends/interests
• Income from more than one house property
• Receive income from assets situated outside India
• Short-term or long-term capital gains from any asset class
• Remuneration received from a partnership firm and not from LLPs
• Income from F&O trading/intraday/share trading
• Rewards from lottery, horse racing, or similar activities under other sources

Additionally, NRIs who have business income from India are also required to file ITR-3. It applies when their income falls within categories like proprietary business, professional practice, or partnership interests in Indian firms.

Who Cannot File ITR-3?

No person other than individuals and HUFs is eligible to file ITR-3. Additionally,

• Companies, LLPs, and partnership firms file separate return forms
• Individuals eligible to file ITR-1, ITR-2, or ITR-4 cannot file ITR-3.
• Individuals who have income from only a salary, pension, or interest must use ITR-1 or ITR-2.
• Taxpayers who opt for the presumptive taxation scheme under Section 44AD, 44ADA, or 44AE must file ITR-4.

If you are unsure, you can use the income tax portal's eligibility checker or contact your CA to confirm which form you must file.

What Income Sources can be Reported in ITR-3?

The ITR-3 is a comprehensive form that covers all major income categories in a single return. Here are the incomes you can report in ITR-3:

• Salary or pension income
• F&O and intraday trading income
• Business or professional income
• Virtual digital assets (VDA) and cryptocurrency income
• Foreign income and foreign assets (Schedule FA)
• Remuneration and interest from partnership firms
• House property income, whether self-occupied, let out, or deemed let out
• Income from other sources, like interest, dividends, family pension, and lottery winnings

NRIs must report all India-sourced income across these categories. Also, your foreign income is taxable in India only if you are a resident and ordinarily resident (ROR).

Schedule FA reporting is mandatory only for Resident and Ordinarily Resident (ROR) taxpayers. NRIs and RNORs are generally exempt from this reporting requirement. However, they are usually not taxed on foreign income in India, subject to applicable DTAA provisions.

What are the Major Changes Introduced in ITR-3 AY 2026-27?

Here are the major additions, removals, and requirements changed introduced in the ITR-3 form for FY 2025-26:

Additions

• A new field has been added to cover losses from share buyback
• Additional disclosure requirements have been introduced for taxpayers claiming deductions under Sections 80DD and 80U.
• New reporting fields have been introduced in Part-A GEN and Schedule BP. It is for specified non-residents eligible to claim 25% presumptive income under Section 44BBD.

Removals

• The previous requirement to bifurcate capital gains before and after 23rd July, 2024, has been removed.
• Reporting relief under Section 89A has been removed from the form.

Requirements

• Providing the IFSC and transaction reference number is mandatory to claim Section 80G deductions.
• New late fees, as applicable under Section 234I, will be imposed on revised returns filed after December 31st.
• Schedule VDA now requires detailed transaction-level reporting for all crypto and virtual digital asset transactions.
• F&O transactions, speculative income, and intraday must now be reported separately. You can no longer club them together.
• Mandatory disclosures are required for interest and remuneration received from partnership firms.
• Claiming deductions under Section 80GGC now strictly requires disclosing the political party's name and PAN.

Apart from these changes, some updates were also introduced in Budget 2026:

• The time limit to revise the ITRs has now been extended to the 31st of March, which was previously the 31st of December. However, a nominal fee applies for revisions made after the original deadline.
• For non-audit business cases, the due date is the 31st of August 2026.
• Taxpayers can update returns even after the reassessment proceedings start. However, they need to pay an additional 10% tax for the same.

What is the Complete Structure of ITR-3?

ITR-3 is a multi-part form that includes detailed schedules. The table below lists the complete breakdown of ITR-3:

These are the Schedules and Parts included in ITR-3 to cover various income categories for individuals and HUFs with business or professional income. Moving further, let's see some of the key schedules that are most relevant for NRIs.

Key Schedules Most Relevant for NRIs

The table below lists the main schedules that are most relevant for NRIs

What are the Business Codes for ITR-3?

Anyone filing ITR-3 must choose the correct business code in Part-A GEN. The table below lists the complete list of business codes applicable for FY 2025-26:

**Note: Ensure to match your business code to your primary source of business income always. In case you have multiple businesses, choose the code that represents your dominant activity by revenue. If you select the wrong code, your return will be flagged for scrutiny or cause mismatches in AIS-based data comparisons.

What are the Documents Required to File the ITR-3 Form?

You don't need to submit/attach documents while for ITR-3 filing However, you still need the documents to ensure information accuracy, avoid missing any important information, and to provide in case of scrutiny and audits. Here are the documents you need to keep ready:

Basic Documents

• PAN and Aadhaar card
• Form 26AS and Annual Information Statement (AIS)
• Bank statements for all accounts, including NRO/NRE for NRIs
• TDS certificates, Form 16 for salary, and Form 16A for other TDS

For Business or Professional Income

• GST returns (if registered under GST)
• Profit and loss account and balance sheet for FY 2025-26
• Books of accounts and tax audit report in Form 3CA/3CB and 3CD (if applicable)

For Capital Gains

• Cost of acquisition and improvement records
• Sale and purchase deeds for property transactions
• Broker statements or capital gains reports from mutual fund houses

For F&O Trading Income

• Broker-generated profit and loss statements
• Separate transaction-level records for speculative, intraday, and F&O positions

For NRIs

• Copy of passport with entry/exit stamps to prove residential status
• Tax residency certificate (TRC) and Form 10F to claim benefits under DTAA
• Foreign bank account statements and asset details for Schedule FA.

How to File ITR-3 Online?

Follow the steps below to file ITR-3 online:

• Step 1: Log in to the income tax portal using your PAN and password.
• Step 2: Go to e-file → income tax returns → file income tax return
• Step 3: Choose assessment year 2026-27 and select online filing mode. After that, choose ITR-3.
• Step 4: Review and edit the pre-filled data carefully. Cross-check all the figures against Form 26AS, AIS, and your own books. Do not accept the pre-filed data without verification. You will be liable for any errors in the ITR after submission.
• Step 5: Complete all applicable schedules, including business income, F&O transactions, VDA income, house property, capital gains, foreign assets, and all deduction schedules.
• Step 6: Calculate your tax liability, pay any due amount through Challan 280, and enter the challan details in the return.
• Step 7: Preview, submit, and e-verify ITR within 30 days using Aadhaar OTP, net banking, or DSC. Verification is important as unverified returns are treated as not filed.

NRIs who don't have an active Indian mobile number linked to Aadhaar can e-verify via net banking. Alternatively, they can also send a signed ITR-V to CPC Bengaluru within 30 days.

What is the Last Date to File ITR-3 for FY 2025-26?

Consider the table below to check the due date for filing ITR-3 for FY 2025-26 based on the category of taxpayer:

Although missing the August deadline will not prevent you from filing, it will attract a late fee under Section 234F. The penalty can be up to Rs. 5,000 and also interest under Section 234A on outstanding tax. 

How Does ITR-3 Differ from Other ITR Forms?

Consider the table below to check which ITR form must be used by which taxpayer:

The most common errors that taxpayers make are choosing the wrong form. Taxpayers having any business or professional income (other than eligible presumptive income under ITR-4) must file ITR-3, even if they also have salary, house property, capital gains, or foreign income. However, if you have any business or professional income, select ITR-3, regardless of what other income you have.

Let's see some other mistakes that taxpayers make while filing ITR-3.

What are the Common Mistakes to Avoid While Filing ITR-3?

Here are some common mistakes that you must avoid while filing ITR-3:

• Choosing the Wrong Form: Choose ITR-3 if you have business income and not ITR-2, even if you have capital gains or other income.
• Accepting Pre-filled Data Without Checking: The pre-filed capital gains, dividends, and TDS data may be complete. Hence, you must ensure to cross-check information against broker statements and AIS before submitting.
• Clubbing F&O and Intraday Together: For AY 2026-27, you must report each trading category separately, as per the new changes introduced. Mixing them may create inconsistencies that the system will flag.
• Reporting VDA Transactions as a Lump Sum: Schedule VDA now requires transaction-level details for crypto and digital assets. Summary entities are no longer accepted.
• Claiming Section 80G Without IFSC and Reference Number: It is a new mandatory field, and missing it will invalidate the deduction.
• Omitting Schedule FA: ROR taxpayers with any foreign accounts, investments, or property must complete Schedule FA. This requirement applies even if those assets earned nothing during the year. Moreover, the penalty for omission can be severe.
• Choosing the Wrong Business Code: An incorrect code can flag your return or cause AIS mismatches. Match the code to your primary revenue activity.
• Missing e-verification: Not completing the e-verification within 30 days will lead to your return being treated as invalid.

The Bottom Line

Compared to prior years, ITR-3 for AY 2026-27 is more detailed with new transaction-level reporting for F&O income and crypto assets, mandatory documentation for deduction claims, and much more. The deadline for filing a revised return has been extended to the 31st of March. Additionally, the form handles foreign asset disclosure and residential status reporting in the same filing for NRIs having Indian business income.

Filing an ITR may seem easy until your income involves a tax audit or complex calculations. However, to address such issues, seeking assistance from an expert CA at Savetaxs can help. We have a team of experts who are familiar with NRI ITR filing, deductions, tax portals, and everything required. Our experts can help you file the correct ITR form accurately and avoid any consequences that may arise due to an error in the form. Contact us right away and ensure to file a correctly filed return from the start instead of filing a revised one later.