ITR-3 Return Filing

Who should file ITR 3?

1. Both individuals and HUFs can file ITR – 3
2. An individual taxpayer or a HUF that had earnings during the financial year from their profession or proprietary business.
3. The total income of an individual or a HUF exceeds the amount that is not subject to income tax. Income-tax Act, Chapter VI-A, allows deductions for such payments.

A different amount is not subject to income tax for each kind of taxpayer:

Taxpayers who meet one or more of the following requirements but whose total taxable income does not exceed the basic exemption level must file Form ITR 3:

•  The taxpayer is the director of some company.
• If the taxpayer had an investment in unlisted equity shares during the fiscal year.
• The taxpayer’s earning source is from a partnership in some business
• If the amounts or aggregates of amounts deposited in the taxpayer’s one or more current accounts are more than Rs 1 crore.
• If the taxpayer pays for someone’s foreign travel and the cost exceeds Rs 2 lakhs.
• The taxpayer incurs an expense due to power use which exceeds Rs 1 lakh.
• One can also file ITR-3 for income from pay or pension, house property, and other sources other than profession or business.

What is the ITR-3 Form’s structure?

ITR- 3 has three sections with the following parts:-

• Part A-GEN: This part contains General information and the Nature of Business
• Part A-BS: This section contains the Balance Sheet of the Proprietary Business or Profession as of March 31, 2021
• Manufacturing Account (Part A): As the name suggests, this part contains Manufacturing Account for the previous fiscal year
• Part A: Trading Account: As the name suggests, it has the Trading Account for the previous fiscal year
• Part A-P&L – Profit and Loss for the previous fiscal year.
• Part A-OI – Other Information only in a case not liable for audit under Section 44AB.
• Part A-QD – Quantitative Details only in a case not responsible for audit under Section 44AB.
• Schedule-S: Calculation of income through Salaries.
• Schedule-HP – Computation of income from House Property
• Schedule BP – Calculation of income from a business or profession
• Schedule DPM: Computation of depreciation on plant and machinery as per the Income Tax Act.
• Schedule DOA: Calculation of depreciation on other assets as per the Income Tax Act.
• Schedule DEP: The Summary of depreciation on all assets as per the Income Tax Act.
• Schedule DCG – Calculation of presumed capital gains on the sale of depreciable assets 
• Schedule ESR – Deduction of expenditure on scientific research under section 35 
• Schedule-CG: Computation of income from Capital gains.
• Schedule 112A: The information on Capital Gains in situations as per the Schedule
• 115AD(1)(b) of Schedule (iii) – There is a provision for Non-Residents of India. Particulars of Capital Gains in situations as per Section 112A.
• Schedule-OS – Computation of revenue under the heading income from other sources.
• Schedule-CYLA-BFLA: Income statement after set-off of current-year losses and income statement after set-off of unabsorbed losses carried forward from previous years.
• Schedule-CYLA: Income statement after losses from the current year have been deducted.
• Schedule BFLA: Income statement after set-off of unabsorbed loss carried forward from previous years.
• Schedule-UD: Unabsorbed depreciation statement.
• Effect of Income Computation Disclosure Standards on Profit (Schedule ICDS)
• Schedule 10AA: Deduction computation based on section 10AA.
• Schedule 80G: A statement of charitable contributions eligible for a deduction under section 80G.
• Schedule RA: Statement of donations to research associations and other organisations eligible for a deduction under section 35(1)(ii) or 35(1)(iia) or 35(1)(iii) or 35(1)(iv) or 35(1)(iv) or 35(1)(iv) or 35(1)(iv) or 35(1)(iv) or 35(1)(iv) or 35(1)(i (2AA)
• Calculation of the deduction under section 80IA on Schedule 80IA.
• 80IB Schedule: Calculation of the deduction under section 80IB.
• Schedule-80IC/80-IE: Deduction computation under sections 80IC/80-IE.
• Schedule VI-A: Statement of Chapter VIA deductions (from total income).
• Computation of the Alternate Minimum Tax Due Under Section 115JC (Schedule AMT)
• Computation of the tax credit under section 115JD on Schedule AMTC
• Schedule SPI: Income from a spouse, minor child, son’s wife, or other individual or group should be included in the assessee’s income in Schedules HP, BP, CG, and OS.
• Schedule SI: Statement of income subject to special rates of taxation.
• Information on partnership firms where the assessee is a partner (Schedule-IF).
• Statement of Income not included in total income (Schedule EI) (exempt payments)
• Schedule PTI: As required by sections 115UA and 115UB, pass-through income data from a business trust or investment fund.
• Schedule TPSA: Section 92CE secondary adjustment to transfer price (2A)
• Schedule FSI: Information on income earned outside of India and tax benefits
• Statement of tax relief claimed under section 90, section 90A, or section 91 (Schedule TR).
• Statement of Foreign Assets and Income from Any Source Outside India (Schedule FA).
• Schedule 5A: Information on how the Portuguese Civil Code regulates income division between spouses.
• Assets and liabilities at the end of the year (Schedule AL) (applicable where the total income exceeds Rs 50 lakhs)
• Schedule GST: Information on gross receipts/turnover submitted for GST.
• Part B-TI: Total Income Calculation
• Part B-TTI: Calculation of total income tax liability.
• Verification

The process to File ITR 3 Form Online

You can submit the income tax return online using the e-filing platform through the ‘Prepare and Submit Online’ option:-

In order to prepare and file ITR 3, follow the steps below:

• Visit the official Income Tax e-Filing portal.
• You can log in to the portal by entering your user ID (PAN), password, and captcha code, then click ‘Login.’ In case it’s your first time on the portal, you’ll need to create a new account by following the on-screen instructions.
• Under the e-file menu, choose the ‘Income Tax Return’ option from the drop-down menu.
• Your PAN card details will be pre filled on the ‘Income Tax Return’ page. 
• Now choose the ‘Assessment Year’ for which you need to file an ITR, and then the ‘ITR Form Number that is ITR 3 option.
• In place of the ‘Filing Type Choose Original.’ Choose ‘ Revised Return’ if you’re filing a revised return.
• Select ‘Prepare and Submit Online’ in place of ‘Submission Mode.’
• Fill in the information on your earnings, deductions, exemptions, investments, TDS/TCS, advance tax, and self-assessment tax payments.
• If you want to avoid data loss, click the ‘Save Draft’ button from time to time to save the ITR details as a draft, correctly fill out each Schedule and save the document.
• Remember: The draught will not be available once you file the ITR or if the XML schema of the ITR does not change. Else the saved draught is available for 30 days from the date of saving the details.
• under the ‘Taxes Paid and Verification’ schedule, select the verification option.

Check your tax return using any of the following methods:

• I want to use e-Verify.
• I want to e-Verify my application within 120 days after filing.
• I don’t want to use e-Verify and instead prefer to mail a signed ITR-V to the “Centralized Processing Center, Income Tax Department, Bengaluru – 560500” within 120 days of filing.
• To double-check, click the ‘Preview and Submit’ button and validate all details.
• ‘Submit’ the ITR now.

Complete the steps below to carry on E-verification on your return:

Upon selecting the ‘, I would like to E-Verify’ option then; you can e-verify using the following alternatives. You will be required to enter EVC or OTP.

1. You can generate EVCs through the Generate EVC option in My Account Aadhaar or at a bank ATM.
2. Pre-validated Bank Account
3. Pre-validated Demat Account

Frequently Asked Questions