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How to file ITR-3?

by | May 20, 2024 | Income Tax | 0 comments

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How to file ITR-3?

Income Tax Return Form 3 (ITR-3) is designed for individuals and Hindu Undivided Families (HUFs) who have income under the head “profits or gains from business or profession” and are not eligible to file Form ITR-1 (Sahaj), ITR-2, or ITR-4 (Sugam). Electronic filing of ITR-3 is mandatory for these taxpayers. To file the ITR-3, registration on the e-filing portal is required.

The due dates for filing ITR-3 are as follows:

  1. Non-Audit Cases: The due date is 31st July of the next financial year.
  2. Audit Cases: The due date is 30th September of the next financial year.

Who should file ITR-3?

Individuals and HUFs eligible to file ITR-3 have income from the following sources:

  1. Business or Profession: This includes both tax audit and non-audit cases.
  2. Presumptive Taxation Scheme: Taxpayers registered under the presumptive taxation scheme with a turnover exceeding 2 crores during the financial year.
  3. Partnership Income: Individuals and HUFs who are partners in a firm but do not carry out business under proprietorship. This includes income from salary, bonus, commission, interest, or remuneration from the partnership firm.

How to file ITR 3?

A taxpayer is required to file ITR-3 online through the e-filing portal of the Income Tax Department. There are two primary methods to file ITR-3 electronically:

  1. Offline Preparation and Submission:
    • Prepare ITR-3 offline using the Tax Return Preparation Utility.
    • Submit the prepared return from your login on the Income Tax website.
  2. Online Preparation and Submission via E-Return Intermediary (ERI):
    • Prepare and submit ITR-3 online using an E-Return Intermediary (ERI) such as Finodha.

You can furnish the return electronically in the following ways:

  • Under Digital Signature: Submit the return electronically with a digital signature.
  • Verification Methods: Submit the verification of the return in Form ITR-V or e-verify using other available modes.

Once the return is e-verified using a digital signature, you will receive an acknowledgment receipt on your registered email ID. This acknowledgment serves as proof of successful submission and verification of your ITR-3.

Structure of ITR-3

Part/ ScheduleHeadingFields
PART A- GENERALPersonal InformationName, Address, Date of Birth, PAN, contact details.
Filing StatusEmployer Category, Tax status, Residential status, Return filed under the section.
PART B-TIComputation of total incomeTotal Income from all income sources, Losses of the current year set off, Gross Total Income, Deductions under Chapter VI-A.
PART B-TTIComputation of tax liability on total incomeThe Bank Account details, Verification, and TRP details (if any) are to be provided. 
Schedule ITDetails of Advance Tax and Self-Assessment Tax PaymentsBSR code, Date of Deposit, Challan number, Tax Paid
Schedule TDSTDS-1: Details of Tax Deducted at Source from SALARYTAN of Employer, Employer Name, Tax Deducted, etc.
TDS-2: Details of Tax Deducted at sources from Income other than Salary (As per FORM 16A) & Details of tax deducted at source on sale of immovable property u/s 194IA (Form 26QB)TAN, Name of Deductor, Year of Deduction, Tax deducted, etc.
Schedule TCSDetails of tax collected at sourceTAN of the collector, Name of Collector, Tax Collected, etc.
Manufacturing AccountManufacturing Account for the financial yearFill in the opening inventory, purchases, direct wages, direct expenses, factory overheads and closing stock.
Trading AccountTrading Account for Financial YearFill up the details of Trading Account for the financial year
such as Sales/Gross receipts of business/profession, duties, taxes and cess, etc. Further, in respect of supplies, closing stock and opening stock of finished goods, purchases, direct expenses, duties/taxes etc.
P&LProfit and Loss Account for the financial year
In case you were required to maintain regular books of accounts for the proprietary business or profession, please fill up details at item No. 13 to 60. In case you are not required to maintain regular books of accounts, please fill up details at item No. 61-65 falling into respective income sections
Balance-sheetBalance Sheet as on 31st day of MarchBalance Sheet of the business or profession as on 31st March of the FY in respect of the proprietary business or profession
carried out. I t shall include: Creditors, Debtors, Bank balance, Fixed Assets, etc.
Schedule OIOther InformationPart A-OI, contains details of allowances & disallowances under Income tax act. Fill up the information of items which are applicable.
Schedule QDQuantitative detailsIn Part A-QD, the quantitative details of trading and manufacturing account are required to be furnished in respect of principal items.
Schedule SDetails of Income from SalaryName and PAN of the Employer, Address of the Employer, Salary, Perquisites, Allowance, etc.
Schedule HPDetails of Income from House PropertyDetails of House Property, Name and PAN of the Co-owners and Tenants, Details of Rent Income, Interest payable on Borrowed Capital, etc.
Schedule BPComputation of income from business or professionIncome chargeable under the head ‘Profits and gains of business or profession’ is computed starting from the net profit before taxes arrived at in the profit and loss account
Schedule DPMDepreciation on Plant and Machinery(Other than assets on which full capital expenditure is allowable as deduction under any other section) It provides for computation of depreciation admissible under the
Income-tax Act for the year in respect of plant and machinery
Schedule DOADepreciation on other assetsComputation of depreciation admissible under the
Income-tax Act for the year in respect of other category of assets – land, building, furniture and fittings, intangible assets and ships.
Schedule DEPSummary of depreciation on assetsIt contains a summary of depreciation admissible under the
Income-tax Act for the year in respect of all category of assets
Schedule CGIncome from Capital GainsDetails about the Short term and Long term Capital gains, Sales consideration, Cost of Acquisition, Deductions under Section 54, 54B, 54EC, 54F, 54GB.
Schedule OSIncome from Other SourcesA dividend, Interest, Rental income from machinery, Winnings from lotteries, Crossword puzzles, Races, Games.
Schedule CYLADetails of income after set­off of current year lossesDetails of current year losses and its Inter Headset off
Schedule BFLADetails of income after Set off of Brought Forward Losses of earlier yearsDetails of brought forward losses set off against current year’s income, total brought forward losses set off.
Schedule CFLDetails of Losses to be carried forward to the future yearsTotal of earlier year losses, current year losses, Total of carried forward to future years.
Schedule VI-ADeductions under Chapter VI-ADeductions under section 80C, 80CCC, 80CCG, 80D, 80DDB, 80E, 80G, 80TTA.
80GDetails of DonationsName of Donee, Address, City or District, State Code, PAN of Donee, Amount.
Schedule SPIThe income of specified persons (spouse, minor child, etc.) included in the income of the assessee (income of the minor child, in excess of INR 1500 per child, to be included)Name and PAN of Person, Relationship, Nature of Income, Amount.
Schedule SIIncome chargeable to income tax at special ratesDescription of Special Rate Income, Special Rate, Income, Taxable Income after adjusting min. chargeable to tax, Tax thereon.
Schedule EIDetails of Exempt Income (Income not to be included in Total Income)Interest income, Dividend, Agricultural Income.
Schedule PTIDetails of Income from Business Trust or Investment Fund Details of Income earned from Business Trust or Investment Fund as per section 115UA, 115UB. 
Schedule FSIDetails of Income from outside India and tax reliefA country, Head of income, Income from outside India, Tax paid outside India, Tax payable in India, Relevant article of DTAA if relief is claimed u/s 90 or 90A
Schedule TRSummary of tax relief claimed for taxes paid outside IndiaDetails of tax relief claimed
Schedule 5AInformation regarding the appointment of income between spouses governed by Portuguese Civil CodeName and PAN of a spouse, Income received under different heads, Amount appointed in the hands of the spouse, TDS details.
Schedule FADetails of Foreign Assets and Income from any source outside IndiaDetails of foreign bank accounts, financial interest in any entities, Immovable Properties, Other Capital Assets.
Schedule ALDetails of Assets and LiabilitiesDetails of an immovable asset, Details of a movable asset, Interest held in the asset of a firm or AOP.

Read More: Form 10IEA: Opting out of/Re-entering New Tax Regime

Web Stories: Form 10IEA: Opting out of/Re-entering New Tax Regime

Official Income Tax Return filing website: https://incometaxindia.gov.in/

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