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Income Tax Return 3 Filing (ITR-3 Form Filing)
All individuals and Hindu Undivided Families who have income from profits and gains from the business or professions need to file Form ITR-3.
The persons having income from the following sources are eligible to file ITR-3 Form:
- Carrying on a business or profession (in both tax audit and non-audit cases)
- The return may include income from House property, Salary/Pension, capital gains, and Income from other sources
Who is eligible to file ITR-3 form?
Individuals and HUFs who have income from carrying on a profession or from a Proprietary business need to file the ITR-3 form.
You need to use ITR-3 Form when the assessee’s income falls in the following categories:
Who is not eligible to file ITR-3 form?
If the Individual or HUF is functioning as a partner of a partnership firm that is carrying out business or profession then they cannot file form ITR-3 and they’ll be eligible to file ITR-2 form.
What is the structure of the ITR-3 Form for AY 2021-22?
ITR-3 is divided into:
- Part A
- Part A-GEN: General information and Nature of Business
- Part A-BS: Balance Sheet as of March 31, 2020, of the Proprietary Business or Profession
- Part A- Manufacturing Account: Manufacturing Account for the financial year 2020-21
- Part A- Trading Account: Trading Account for the financial year 2020-21
- Part A-P&L: Profit and Loss for the financial Year 2020-21
- Part A-OI: Other Information (optional in a case not liable for audit under Section 44AB)
- Part A-QD: Quantitative Details (optional in a case not liable for audit under Section 44AB)
- Schedule-S: Computation of income under the head Salaries.
- Schedule-HP: Computation of income under the head Income from House Property
- Schedule BP: Computation of income from business or profession
- Schedule-DPM: Computation of depreciation on plant and machinery under the Income-tax Act
- Schedule DOA: Computation of depreciation on other assets under the Income-tax Act
- Schedule DEP: Summary of depreciation on all the assets under the Income-tax Act
- Schedule DCG: Computation of deemed capital gains on the sale of depreciable assets
- Schedule ESR: Deduction under section 35 (expenditure on scientific research)
- Schedule-CG: Computation of income under the head Capital gains.
- Schedule 112A: Details of Capital Gains where section 112A is applicable
- Schedule 115AD(1)(b)(iii)Proviso: For Non Residents Details of Capital Gains where section 112A is applicable
- Schedule-OS: Computation of income under the head Income from other sources.
- Schedule-CYLA-BFLA: Statement of income after set off of current year’s losses and Statement of income after set off of unabsorbed loss brought forward from earlier years.
- Schedule-CYLA: Statement of income after set off of current year’s losses
- Schedule BFLA: Statement of income after set off of unabsorbed loss brought forward from earlier years.
- Schedule CFL: Statement of losses to be carried forward to future years.
- Schedule- UD: Statement of unabsorbed depreciation.
- Schedule ICDS – Effect of Income Computation Disclosure Standards on Profit
- Schedule- 10AA: Computation of deduction under section 10AA.
- Schedule 80G: Statement of donations entitled for deduction under section 80G.
- Schedule RA: Statement of donations to research associations etc. entitled for deduction under section 35(1)(ii) or 35(1)(iia) or 35(1)(iii) or 35(2AA)
- Schedule- 80IA: Computation of deduction under section 80IA.
- Schedule- 80IB: Computation of deduction under section 80IB.
- Schedule- 80IC/ 80-IE: Computation of deduction under section 80IC/ 80-IE.
- Schedule VI-A: Statement of deductions (from total income) under Chapter VIA.
- Schedule AMT: Computation of Alternate Minimum Tax Payable under Section 115JC
- Schedule AMTC: Computation of tax credit under section 115JD
- Schedule SPI: Statement of income arising to spouse/ minor child/ son’s wife or any other person or association of persons to be included in the income of the assessee in Schedules-HP, BP, CG and OS.
- Schedule SI: Statement of income which is chargeable to tax at special rates
- Schedule-IF: Information regarding partnership firms in which assessee is a partner.
- Schedule EI: Statement of Income not included in total income (exempt incomes)
- Schedule PTI: Pass through income details from a business trust or investment fund as per section 115UA, 115UB
- Schedule TPSA: Secondary adjustment to transfer price as per section 92CE(2A)
- Schedule FSI: Details of income from outside India and tax relief
- Schedule TR: Statement of tax relief claimed under section 90 or section 90A or section 91.
- Schedule FA: Statement of Foreign Assets and income from any source outside India.
- Schedule 5A: Information regarding apportionment of income between spouses governed by Portuguese Civil Code
- Schedule AL: Asset and Liability at the end of the year(applicable where the total income exceeds Rs 50 lakhs)
- Schedule GST: Information regarding turnover/ Gross receipt reported for GST
- Part B-TI: Computation of Total Income.
- Part B-TTI: Computation of tax liability on total income.
Documents Required for filing ITR-1 Sahaj Form
- Aadhaar card copy.
- Form 16 issued by employer in case salary income is earned.
- Month-wise salary slip where form 16 is not been issued by the employer in case salary income is earned.
- Rent receipts in case of rental income and rental agreement.
- Bank statement for the financial year for interest on savings account.
- Form 16A or Interest Statement issued by Banks for Fixed Deposit Interest Income.
- In case of capital gains, tax profit and loss or capital gain statement issued by the Share broker.
- Chapter VIA Investment details for claiming deduction as follows:
- Receipt of children’s school tuition fees.
- Life insurance premium receipt.
- Stamp-duty and registration charges.
- Principal repayment on your home loan.
- Equity Linked Savings Scheme/Mutual funds investment.
- Mediclaim payment receipt etc.
- Profit and loss statement and Balancesheet for the previous year
- Details of Chartered Accountant conducting Tax audit in case the person is covered under section 44AB.
- Copies of books of accounts required to be maintained as per section 44AB i.e. Cash book, Journal book, Sales and Purchase register in case of business and Receipt book in case of profession.
Frequently Asked Questions
ITR-3 must be filed by individuals and HUFs who have income from carrying on a profession or from a Proprietary business.
If an Individual or HUF is having income as a partner of a partnership firm that is carrying out business or profession, he/she/they cannot file ITR-3. In such a case, they are required to file ITR 2.
You need to use the ITR-3 form when the assessee has income that falls into the below category :
- Income from carrying on a profession
- Income from Proprietary Business
- Along with income from a profession or proprietary business, the return may also include income from House property, Salary/Pension, and Income from other sources
The due date for filing income tax returns is 31st July for Individuals and 30th September for Businesses.