What is ITR-3 form?

Updated: 02-04-2024 07:07:58 AM

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ITR-3 Form is meant for individuals and HUFs who have income under the head “profits or gains from business or profession” and who are not eligible to file Form ITR‐1 (Sahaj), ITR‐2 or ITR‐4 (Sugam).

Who Can File ITR-3 Form

Form ITR-3 needs to be filed by the people having any of the following sets of income:

• Income from salary/pension
• Income from house property
• Taxpayers registered under presumptive taxation scheme and having a turnover of more than Rs. 2 crore
• Individuals and HUFs who are partners in a firm but do not carry out business under proprietorship. Such income may include income from salary, bonus, commission, interest or remuneration from the partnership firm.

What is the Structure of ITR-3 Form

ITR-3 Form is divided into the following sections:

1). Part A

• Part A-GEN: General information and the nature of a business
• Part A- Manufacturing account: Manufacturing account for a given financial year
• Part A- Trading account: Presents a trading account for a given financial year
• Part A-P&L: Shows the profit and loss for a given financial year
• Part A-BS: It contains the balance sheet as of the year-end for the proprietary business/profession
• Part A-OI: This part contains other information. However, it is not mandatory in a case that is not liable for audit u/s 44AB
• Part A-QD: This contains quantitative details, which is also not mandatory in a case that is not liable for audit u/s 44AB

2). Schedules

• Schedule S: Calculates income falling under the head – Salaries
• Schedule HP: It calculates a taxpayer’s income – Income from House Property
• Schedule BP: It calculates the income from profession/business
• Schedule DPM: Computes depreciation on plant and machinery as per the Income Tax Act
• Schedule DOA: It calculates depreciation on other assets as per the Income Tax Act
• Schedule DCG: Calculation of capital gains on the depreciable assets’ sales
• Schedule DEP: It contains the summary of depreciation on all the assets as per the Income Tax Act
• Schedule CG: Computation of income under Capital Gains
• Schedule ESR: It includes deduction under Section 35/35CCC/35CCD, that is, expenditure on scientific research.
• Schedule 112A: This requires providing details of capital gains wherein Section 112A is applicable
• Schedule 115AD(1)(iii) provision: Applicable for non-residents, this schedule requires details of capital gains wherein Section 112A is applicable
• Schedule OS: Calculates one’s income under the head ‘Income from Other Sources
• Schedule CYLA: It contains details of income after setting off current FY losses
• Schedule BFLA: It contains a statement of income after setting off unabsorbed losses brought forward from earlier financial years
• Schedule CYLA-BFLA: This contains a statement of income after setting off the losses of the current year and unabsorbed losses brought forward from earlier financial years
• Schedule CFL: It presents a statement of losses that shall be carried forward to subsequent financial years
• Schedule UD: It shows unabsorbed depreciation
• Schedule ICDS – This section shows the effect of income computation disclosure standards (ICDS) on profits
• Schedule 10AA: It calculates deductions under Section 10AA
• Schedule RA: It contains details of donations to research institutions entitled for deduction under Section 35(2AA),35(1)(ii), 35(1)(iia), or 35(1)(iii)
• Schedule 80G: It contains details of donations subject to deductions u/s 80G
• Schedule 80GAA: It contains details of donations for scientific research/rural development (applicable in the case of a partner of firm deriving only profit from the firm)
• Schedule VIA: Includes deductions from one’s total income under Chapter VI-A
• Schedule 80IB: Computes of deductions u/s 80IB
• Schedule 80IA: It determines deductions u/s 80IA
• Schedule 80IC/ 80-IE: Calculates deductions u/s 80-IC or 80-IE.
• Schedule AMT: Calculation of alternate minimum tax payable u/s 115JC.
• Schedule AMTC: Computation of tax credit u/s 115JD
• Schedule SPI-SI: Details particular persons (spouse, minor, etc.) or association of persons that are included in the income of an assessee
• Schedule IF: Information relating to partnership firms in which you are a partner
• Schedule EI: It presents details of income that is not included in one’s total income/not chargeable to tax
• Schedule PTI: It includes income details received from business trusts/investment funds as per Section 115UA, 115UB of the Income Tax Act
• Schedule TPSA: Indicates secondary adjustment of taxes according to Section 92CE(2A)
• Schedule FSI: It indicates the details of a taxpayer’s income earned outside India and applicable tax relief
• Schedule TR: It is a summary of tax relief claimed for taxes paid outside India (available only in case of residents)
• Schedule 5A: It contains information relating to the apportionment of income between spouses governed by Portuguese Civil Code
• Schedule FA: It contains details income from sources outside India as well as foreign assets.
• Schedule AL: It details the assets and liabilities at the end of a financial year. This is only applicable for taxpayers with a total income of more than Rs. 50 lakh
• Schedule GST: This section contains information regarding the turnover or gross receipts reported for GST
• Schedule Tax Deferred on ESOP: Information pertaining to Tax deferred – relatable to income on perquisites referred in section 17(2)(vi) received from employer, being an eligible start-up referred to in section 80-IAC

3). Part B

• Part B-TI: Calculation of Total Income
• Part B-TTI: Calculation of tax liability on total income

4). Verification

How to File ITR-3 Online

Eligible taxpayers can submit duly filled ITR-3 form online from the e-filing portal of the income tax department. Return can be filed online and verified using the digital signature, electronic verification code (EVC) or Aadhaar OTP. Else, you can submit the return online and then verify it using ITR-V.

Also Read: How to e-verify your income tax return?

Taxpayers filing form ITR-3 using digital signature will receive the acknowledgement receipt on their registered email id. It should be noted that ITR-3 is an annexure-free form and thus, you don’t need to attach any documents with it. However, in order to file the ITR, you need to be registered on the e-filing portal.

Also Know: How to file IT returns online?

How to File ITR-3 Offline

To file ITR-3 offline, visit the income tax e-filing website and follow the steps given below:

• 1. On the home page, click on “Downloads”
  2. Next, click on “Income tax Returns”, select AY 2022-23 and click on “Common Offline Utility (ITR-1 to ITR-4). JSON utility will get downloaded.
  3. Unzip the utility and pen the downloaded JSON Utility
  4. Click on “File return”. You can import the prefilled JSON data or you may import the saved JSON draft
  5. Enter your PAN and the A.Y 2022-23 and then click on “Proceed”
  6. Click on “File return”, select the Applicable Status (Individual / HUF / Others) and click on “Continue”
  7. Choose the required ITR and proceed with the ITR
  8. Click “Get Started with Filing of the Return”, enter the required data and confirm for each page
  9. Download the JSON for uploading
  10. Next, go to “e-File”, select “Income Tax Return” and click on “File Income Tax Return”
  11. Select the assessment year, the filing mode as ‘Offline (Using HTML Utility)’ and click on “Continue”
  12. Browse and attach the generated JSON Utility

FAQs

Q1. From where can I download ITR-3 Form for AY 2022-23?
You can file ITR-3 form online from the official e-filing website of the Income Tax Department. You can also download form ITR-3 by clicking here.

Q2. Do I have to pay any charges to file ITR-3?
No, you need not pay any charges to file ITR-3.

Q3. Who cannot use ITR-3 form?
Form ITR-3 cannot be used by any person other than individuals/HUFs. Also, individuals and HUFs not having income from business/profession cannot use ITR-3 form.

Q4. What is the last date to file ITR-3 for AY 2022-23?
The last date to file ITR-3 is 31st July, 2022.

Q5. Is Aadhaar mandatory for ITR-3?
Yes, it has become mandatory since 2018-19 to provide your Aadhaar card details while filing ITR-3