The tax filing process can be tedious, and the last step is filing your Income Tax Returns.
Filing ITR is a mandatory process to show the IT department all your income sources. An Income Tax Return Form (ITR) form is simply a form declaring your sources of income. Different sources of income have their respective forms. Let us dive deep into the ITR3 Form here.
What is ITR 3 Form?
Income Tax Return Form 3 (ITR-3) is for all those individuals and Hindu Undivided Families who drive income under the head “profits or gains from business or profession”.
You can download ITR 3 Form from the e-file portal of the Income Tax Department.
When can ITR 3 Be filed?
You can file ITR 3 if you earn money through a small business or a career in accounting, architecture, medicine, engineering, or other related fields.
The due date for filing ITR 3 is 31st July for Non-Audit cases and 31st October for Audit cases every financial year.
Who will fill up ITR 3?
An ITR 3 Form is eligible for you if your income comes under the following
factors,
- You are a salaried person
- You are a Pensioner
- You earn money from house property
- You receive interest for deposits.
- You won a lottery or game show and other activities falling under Income from Other Sources.
- You possess assets outside of India.
- You generated revenue from short or long-term capital gains.
- You are a partner of a business and do not own a proprietorship.
- Turnover of your business exceeds Rs 2 crore.
What is the structure of ITR 3?
ITR 3 consists of the following sections
- Part A
- Schedules
- Part B
- Verification
Let us delve into these sections for a better understanding,
Part A
- Part A-GEN: Personal information and the nature of a business
- Part A- Manufacturing account: Manufacturing account for a given financial year
- Part A- Trading account: Trading account for a given financial year
- Part A-P&L: Profits and losses for a given financial year
- Part A-BS: Balance sheet as of the year-end for the proprietary business
- Part A-OI: Other information. (Optional if not liable for audit u/s 44AB)
- Part A-QD: Quantitative details. (Optional if not liable for audit u/s 44AB)
Schedules
Schedule-S: Your salary in total.
Schedule-HP: Your income from House Property
Schedule BP: Your income from business or profession
Schedule-DPM: Estimation of depreciation on plant and machinery under the Income Tax Act of 1961
Schedule DOA: Analysis of diminishment on other assets under the Income Tax Act of 1961
Schedule DEP: Overview of devaluation on all the assets under the Income Tax Act of 1961
Schedule DCG: Analysis of considered capital gains on the sale of depreciable assets
Schedule ESR: Deduction underneath Section 35 (expense on scientific research)
Schedule-CG: Calculation of income under the head Funds progress.
Schedule 112A: Points of Capital Returns where Section 112A is applicable
Schedule 115AD(1)(iii)Provision: For non-residents details of Capital Gains where Section 112A is applicable
Schedule-OS: Calculation of income under Income from Other Sources
Schedule-CYLA-BFLA: Report of income after set off of present year’s losses and statement of income after set off of unabsorbed loss carried forward from earlier years
Schedule-CYLA: Statement of revenue after set off of present year’s losses
Schedule BFLA: Report of income after set off of unabsorbed loss brought forward from earlier years
Schedule CFL: Information of losses to be taken ahead to future years
Schedule- UD: Statement of unabsorbed depreciation
Schedule ICDS: Impact of Income Computation Disclosure Standards on Returns
Schedule- 10AA: Estimation of deduction under Section 10AA
Schedule 80G: Statement of contributions entitled for deduction under Section 80G
Schedule RA: Information 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- 80 IA: Accounting of lessening under Section 80IA
Schedule- 80IB: Computation of deduction under Section 80IB
Schedule- 80IC/ 80-IE: Estimation of deduction under Section 80IC/ 80-IE
Schedule VIA: Report of deductions (from total revenue) under Chapter VIA
Schedule SPI-SI-IF: Earnings of specified persons (spouse, minors, etc.) includible in the income of the assessee, income chargeable at special rates, info collaboration firms in which assessee is a partner
Schedule AMT: Calculation of Alternate Minimum Tax Payable underneath Section 115JC
Schedule AMTC: Estimation of tax acclaim under Section 115JD
Schedule SPI: Report of income deriving to spouse/ minor child/ son’s wife or any other person or society of persons to be included in the income of the assessee in Schedules-HP, BP, CG, and OS
Schedule SI: Statement of earnings which is chargeable to tax at unique rates
Schedule-IF: Details regarding alliance firms in which the assessee is a partner
Schedule EI: Statement of income not included in total income (exempt incomes)
Schedule PTI: Pass through income details from firm trust or acquisition budget as per Section 115UA, 115UB
Schedule TPSA: Secondary adjustment to transmit price as per Section 92CE(2A)
Schedule FSI: Elements of income from outside India and tax relief
Schedule TR: Report of tax reserve declared under Section 90 or Section 90A or Section 91
Schedule FA: Statement of Foreign Assets and revenue from any origin outside India
Schedule 5A: Details regarding apportionment of income between mates managed by the Portuguese Civil Code
Schedule AL: Asset and Penalty at the end of the year (suitable where the total income overextends ₹50 lakhs)
Schedule DI: Schedule of tax-saving assets or stakes or expenditures to claim deduction or exemption in the extended period from 1 April 2020, until 30 June 2020
Schedule GST: Statement concerning turnover/ gross receipt reported for GST
Part B
- Part B-TI: Computation of a taxpayer’s total income.
- Part B-TTI: Computes the tax liability on one’s total income.
Verification
And finally, the ITR-3 form holds verification to authenticate the information furnished overhead.
How can I file my ITR 3?
You can file ITR 3 Form online.
- Go to the official e-filing web portal of the Income Tax Department.
- Log into your dashboard and click Prepare and submit the ITR form
- Choose ITR-Form 3.
- Add in your details and submit.
- If applicable upload, your digital Signature.
- Click Submit
How long does ITR 3 take to process?
Once you file your ITR 3 and verify, the Income Tax refund time taken is usually 20-45 days. You should follow up with the Centralised Processing Centre (CPC) if it takes longer. You can track the Income tax refund online.
Bottomline
Thus, Income Tax Return Form 3 (ITR-3) is for you if you drive income under the head “profits or gains from business or profession”. You should file ITR 3 if you earn money through any of the above-said fields. It can be done hassle-free following the processes discussed in this article.
Frequently Asked Questions
How can I file ITR 3 ay 2022-23 offline?
You can log into the official website of the Income Tax Department and download the form without any cost.
- Click on “Offline Utilities” in the Download tab
- Select your Assessment Year, i.e., 2022-23.
- You can Print the ITR 3 download and fill in the details carefully to avoid mistakes
What is the difference between ITR 3 and ITR 4?
ITR 4 is for individuals who have income up to Rs 50 lakh in an FY from business or profession and have opted for presumptive taxation scheme under 44AD, 44ADA, 44AE whereas
ITR 3 is for individuals & HUFs having income from business or profession
What is the difference between ITR 2 and ITR 3?
ITR 2 is for individuals whose income is from salary/ pension or other house properties and not business whereas
ITR 3 is for individuals & HUFs having income from business or profession.
What is the difference between ITR 1 and ITR 3?
ITR 1 is for individuals whose income is from salary/ pension or other house properties(however, it can be only for one house property) and not business whereas
ITR 3 is for individuals & HUFs having income from business or profession
Can I shift ITR 3 to ITR-4?
Shifting from ITR 3 to ITR 4 cannot be done unless your sales are declared.
Conclusion
Filing ITR 3 income tax returns is a critical responsibility for all taxpayers. The form is used to declare one’s income and tax obligations to the government. To avoid legal consequences, it is critical to provide accurate information and calculations on the form. With the advancement of technology, the process of filing income tax returns has become much easier and more convenient, with the option of filing electronically. However, taxpayers must still understand the various provisions and exemptions available to them, and seek professional help if necessary, to ensure that their returns are filed correctly.