Categories: Direct Tax

ITR 3: New Code Introduced for Nature of Business/Profession

Update in ITR Utility—New Codes Introduced for “Nature of Business/Profession”

The Income Tax Department has updated the Income Tax Return (ITR) utility with new codes under the “Nature of Business/Profession” section to align with evolving sectors and taxpayer activities. These changes are applicable for Assessment Year 2025–26. The Tax Dept has updated the ITR-3 utility with new Nature of Business/Profession codes to reflect the growth of emerging sectors such as online trading and digital content creation. Following Key New Codes Introduced:

Newly Introduced Codes for Nature of Business/Profession

  • 09029 – Commission Agents (Kachcha Arahitya)

  • 16021 – Social Media Influencers

  • 21009 – Speculative Trading

  • 21010 – Futures & Options (F&O) Trading

  • 21011 – Buying and Selling of Shares

Why This Matters in ITR Utility—New Codes Introduced?

Taxpayers and professionals must select the correct business/profession code while filing ITR to Ensure accurate classification of income. Avoid notices or scrutiny due to mismatched data & Facilitate seamless ITR processing by the Income Tax Department. Selecting the appropriate code ensures:

  • Proper classification of income

  • Faster and more accurate ITR processing

  • Reduced risk of tax scrutiny or mismatches

If you’re engaged in trading, influencing, agency work, or any newly categorized profession, please review your ITR forms carefully and choose the appropriate code. Need help with code selection or ITR filing for AY 2025–26? Feel free to reach out.

Who is Eligible to File the ITR-3 Form?

The ITR-3 is applicable to individuals and Hindu Undivided Families (HUFs) who earn income from a business or profession, including both tax audit and non-audit cases. Filing the correct ITR form ensures faster processing and reduces the risk of notices from the Income Tax Department.

Who is eligible to file ITR-3: Individuals and Hindu Undivided Families are required to file ITR-3 if they earn income from:

  • Business or profession (tax audit and non-tax audit cases),
  • And do not opt for presumptive taxation under Sections 44AD, 44ADA, or 44AE.

Eligible Assessees Include:

  • Individuals/HUFs carrying on a proprietary business or profession

  • Those receiving remuneration, interest, or commission from a partnership firm

  • Individuals with income from multiple sources, such as:

    • Salary or pension

    • House property

    • Capital gains

    • Other sources (e.g., interest, dividends)

Who is Not Eligible to File the ITR-3 Form?

Ineligible persons include:

  • Entities other than individuals and HUFs (e.g., companies, LLPs, AOPs, etc.)

  • Individuals or HUFs not earning income from business/profession or partnership firms

  • Taxpayers eligible to file under ITR-1 (Sahaj), ITR-2, or ITR-4 (Sugam) based on their income profile

Note: If you’re eligible to file ITR-1, ITR-2, or ITR-4, you should not file ITR-3.

Why Selecting the Correct Nature of Business/Profession Code Matters

  • Key benefits of selecting the correct code are accurate income classification and reduced risk of scrutiny, with faster &  smoother processing.

Online Filing for ITR-3 is Finally Enabled

Online filing for ITR-3 is finally enabled. The Excel utility for the ITR Return Form 3 FY 2025–26 was released by the Income Tax Dept. Now, with both online and offline (Excel/Java) utilities available, income taxpayers can finally file ITR-3 online on the official e-filing portal. This is significant for those

  • Earning business or professional income (other than under presumptive taxation),
  • Having income from share trading, such as futures & options (F&O) or intraday,
  • Holding unlisted shares.

Filing Deadlines for AY 2026-27

Category Due Date
Non-audit cases 31 August 2026
Audit cases 31 October 2026
Belated Return 31 December 2026
Revised Return 31 March 2027

 

Tags: ITR – 3
Rajput Jain & Associates

Rajput Jain & Associates is a Chartered Accountants firm, with it's headquarter situated at New Delhi (the capital of India). The firm has been set up by a group of young, enthusiastic, highly skilled and motivated professionals who have taken experience from top consulting firms and are extensively experienced in their chosen fields has providing a wide array of Accounting, Auditing, Taxation, Assurance and Business advisory services to various clients and their stakeholders. Rajput jain & Associates, a professional firm, offers its clients a full range of services, To serve better and to bring bucket of services under one roof, the firm has merged with it various Chartered Accountancy firms pioneer in diversified fields. We have associates all over India in big cities. All our offices are well equipped with latest technological support with updated reference materials. We have a large team of professionals other than our Core Team members to meet the requirements of our prospective clients including the existing ones. However, considering our commitment towards high quality services to our clients, our team keeps on growing with more and more associates having strong professional background with good exposure in the related areas of responsibility.

View Comments

  • Regularly Trading of Gold & Silver ETF during FY 2025-26 559 Buy & 559 sell all buy & sell executed with a week max 111 days, having some closing stock in is eligible under which code in Business & Profession in ITR3?

    • Answer: Business Code 21011 – Buying and Selling of Shares (Delivery-Based Trading as Business Income) regards Rajput Jain and associates

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