vinujaglan.com · Founder's official site 
Step by step
- 1
Finalise books
Profit and loss account, balance sheet, depreciation and stock.
- 2
Check audit
If turnover crosses the limits, get the tax audit report filed first.
- 3
Reconcile AIS and GST
Turnover in GST returns, AIS and books should agree.
- 4
Fill ITR-3
Schedules BP, P&L, BS, depreciation, and others; claim TDS.
- 5
Pay, submit, e-verify
Pay balance tax with interest under 234A/B/C and e-verify.
Who files ITR-3
- Shopkeepers, traders, manufacturers and contractors who keep books
- Doctors, lawyers, CAs, architects and other professionals not using 44ADA
- Partners receiving salary, interest or profit share from a firm
- Futures & options and intraday traders (non-speculative and speculative business)
- Presumptive-income taxpayers who cannot use ITR-4 (e.g., income above ₹50 lakh, capital gains, director)
Due dates for AY 2026-27
| Case | Due date |
|---|---|
| Books not audited (including partners of such firms) | 31 August 2026 |
| Tax audit under section 44AB (and working partners of audited firms) | 21 November 2026 (extended from 31 October) |
| Transfer-pricing report required | 30 November 2026 |
| Belated return | 31 December 2026 |
Old vs new regime for business income
Business taxpayers are in the new regime unless they file Form 10-IEA before the return due date to opt out. Once they switch back to the new regime they can return to the old one only once in their lifetime — so the choice needs thought, not habit.
The new regime is the default for AY 2026-27: slabs of 0–4 lakh nil, 4–8 lakh 5%, 8–12 lakh 10%, 12–16 lakh 15%, 16–20 lakh 20%, 20–24 lakh 25% and above 24 lakh 30%, with a rebate that makes income up to ₹12 lakh tax-free (₹12.75 lakh for salaried people after the ₹75,000 standard deduction). The rebate does not cover special-rate income such as capital gains.
Books, audit and F&O
- Audit under 44AB is required when business turnover exceeds ₹1 crore (₹10 crore if cash receipts and payments are each within 5%) or professional receipts exceed ₹50 lakh
- F&O turnover is the sum of absolute profits and losses on each trade; losses can be carried forward for 8 years if the return is filed on time
- Partners: share of profit is exempt, but salary and interest from the firm are taxable business income; firms deduct TDS on them under section 194T from 1 April 2025
Filing now
Where things stand on 11 November 2026: the original due dates of 31 July (ITR-1, ITR-2) and 31 August 2026 (non-audit business and professional cases) have passed. You can still file a belated return till 31 December 2026 (late fee under section 234F up to ₹5,000, or ₹1,000 if income is up to ₹5 lakh), and revise a filed return till 31 March 2027 (a fee applies to revisions after 31 December).
Next year: income of FY 2026-27 (Tax Year 2026-27) is taxed under the Income-tax Act, 2025, and returns for it are filed in 2027. The department notifies the forms for that year separately — the names and schedules may change, so check the form notified for Tax Year 2026-27 before filing.
Common mistakes
- Treating F&O losses as capital losses
- Opting for the old regime by habit without Form 10-IEA
- Turnover in ITR different from GST returns
- Missing the 194T TDS credit on partner salary
Frequently asked questions
ITR-3. F&O is business income even if it is a side activity.
Usually yes, if your turnover is within the audit limit. If you show profit below 6%/8% of turnover after having opted for 44AD earlier, audit can be triggered — check before filing.
Last reviewed on 11 November 2026 by Vinay Jaglan, VJ & Associates. Law and portal screens change — verify before acting, or ask the office.
