Govt Tightens Tax Watch on Influencers, Traders, and Event Pros: ITR-3 Gets 5 New Professional Codes

In a significant move to bring emerging digital professions under the tax net, the Income Tax Department has introduced five new professional codes in the ITR-3 form for Assessment Year 2025-26. This change is aimed at tracking high-income earners in new-age professions such as social media influencers, F&O traders, commission agents, and live event organizers, among others. The move is part of a broader effort to ensure greater tax compliance and transparency in the fast-evolving digital economy.

📊 What’s New in ITR-3?

For the first time, the Income Tax Department has expanded the professional classification system within ITR-3 by adding the following codes:

Social Media Influencers

Futures & Options (F&O) Traders

Speculative Traders (including betting-related income)

Commission Agents

Live Event Professionals

These additions aim to bring clarity for taxpayers while enabling the tax department to monitor income more effectively from professions that were previously hard to track due to lack of proper categorization.

💸 Why This Move Was Needed

In recent years, particularly over the past two years, the number of social media influencers earning over ₹20 lakh per year has seen a sharp rise. Some top-tier influencers are reportedly earning between ₹2 crore to ₹5 crore annually, with a few even crossing the ₹100 crore net worth mark. Despite such high earnings, many either failed to file returns or did so under incorrect categories, causing data mismatches and revenue losses.

This misreporting is now expected to be curtailed as influencers and others will need to file under specific professional codes, making it easier for the tax department to assess income accurately and enforce compliance.

🔍 Greater Transparency and Monitoring

According to a report by The Economic Times, this strategic move will not only ensure accurate income reporting but also enhance the department's data analytics and monitoring capabilities. Regional tax offices will now find it easier to identify a taxpayer's profession, reducing chances of evasion or misreporting.

In addition, the move is likely to boost transparency in tax collection from rapidly evolving digital and service-based professions.

✅ Benefits for Taxpayers

• Clarity in Return Filing: Taxpayers now have specific codes tailored to their profession, reducing confusion and errors.

• Legal Compliance: Using correct professional codes ensures adherence to the latest tax regulations.

• Faster Processing: Accurate classification can lead to faster ITR processing and reduced scrutiny.

📝 Summary of the 5 New Codes in ITR-3 Profession Description

Social Media Influencer	Income through online platforms and promotions
F&O Trader	Earnings from Futures and Options trading
Speculative Trader	High-risk short-term trading, including betting
Commission Agent	Income from commissions across industries
Live Event Professional	Income from organizing or managing events

🔔 Final Note

The government’s decision to refine tax classifications reflects its intent to keep pace with changing work models in India. As digital entrepreneurship and gig work expand, these regulatory updates are essential for building a robust and fair taxation ecosystem.

If you belong to any of the newly listed categories, make sure to file your ITR under the correct professional code to avoid penalties and ensure smooth compliance.