What is the ITR 3 form?
The assessee fills out a variety of forms while filing their income tax returns. The ITR-3 form is useful to Hindu Undivided Families (HuF) and individuals who have enrolled themselves as a partner in any firm. The proprietors of the business are not covered by this form. This applies to professionals who work in a partnership setting. Interest, salary, bonus, commission, and other forms of revenue must be earned by the partner.
Those who are members of a Hindu Undivided Family and a partner in any Firm, hence, must use the ITR 3 form to file an income tax return. Salary, bonus, interest, and other forms of compensation may be available to such a person.
Eligibility to File ITR 3
You must earn income from one of the following sources to be qualified to file the ITR-3 Form:
Managing a company or self-employment (for both audit and non-audit cases)
In addition to income from a house, wages, pensions, capital gains, and other sources, a return may also include income from investments, interest, and capital gains.
Note:
For the financial year 2020-21, the income tax department extended the deadline for taxpayers to file the ITR-3 form. It was shifted from 31st October 2021 to 15th February 2022. The deadline for submitting a tax audit report has been extended until January 15, 2022.
Tax audits will be subject to a higher threshold limit of Rs 5 crore beginning with the financial year 2019-20) given the following situations:
- If the taxpayer is subject to a cash receipt limitation of 5% of gross receipts or turnover
- If the taxpayer is subject to a cash payment limitation of 5% of aggregate payments.
ITR 3 Form Structure
ITR-3, Part A
Part A of the form is broken down into the sections listed below:
Part A-GEN: This portion requires personal information, filing status, audit information, and the kind of business.
Part A-BS: Funds sources, applications, and no-account cases must all be filled out.
Part A-Manufacturing Account: The manufacturing account must be filled out completely.
Part A-Trading Account: Trading account credits must be provided.
Part A-P&L: Provide the information for profit & loss accounts.
Part A-OI: Any additional information must be provided.
Part A-QD: Quantitative information will be required.
There are also multiple schedules, as followed:
Schedule-S: Computation of the salaries income.
Schedule-HP: Computation of the residential property earnings
Schedule BP: Computation of the Business or professional income
Schedule DPM: Depreciation on plant and machinery under the Internal Revenue Code Schedule DOA: Depreciation on other assets under the Internal Revenue Code
Schedule DEP: Income-tax Act summary of depreciation on all assets Schedule DCG: Computation of considered capital gains on the sale of depreciable assets
Section 35 deduction on Schedule ESR (expenditure on scientific research)
Schedule-CG: Computation of the capital gains.
Schedule 112A: Capital Gains Details Where Section 112A Applies
115AD(1)(b) Schedule (iii)
Exception: Non-residents Details of capital gains that fall under section 112A
Calculation of the Income revenue from other sources as per Schedule-OS.
Schedule-CYLA-BFLA: Income statement after the losses of the current year and an income statement after the losses offset taken from past years.
Schedule-CYLA: Income Statement after subtracting current year losses
Schedule BFLA: Statement of Income after deducting unabsorbed losses taken from past years.
Schedule CFL: Statement of loss to be carried out the following year.
Schedule-UD: Statement for unabsorbed depreciation
Schedule ICDS: Effects after computation of income from profit disclosure standards
Schedule 10AA: Calculation of deduction on 10AA.
Schedule 80G: Tax-deductible donations in accordance with the 80G section.
Schedule RA: Donations statements for research associations and other organisations qualify for section 35(1)(ii) or 35(1)(iia) or 35(1)(iii) or 35(1)(iv) or 35(1)(iv) or 35(1)(iv (2AA) deduction
Schedule 80IA: Computation of Deductions as per section 80IA.
Schedule 80IB: Computation of Deductions as per section 80IB.
Schedule-80IC/80-IE: Computation of Deductions as per sections 80IC/80-IE.
Schedule VI-A: There must be an entry for any deductions under Section VI-A.
Schedule AMT: Compilation of the Alternative Minimum Tax to be Paid as per Section 115JC
Schedule AMTC: Tax Credit calculation as per Section 115JD
Schedule SPI: Income statement arising from a husband, wife, minor children, or any person or a group of people who are to be included in the assessee's income, according to the schedules BP, HP, OS, and CG.
Schedule SI: A statement of income subject to certain tax rates
Schedule-IF: Detailed information of the partnership firms where the assessee is the partner.
Schedule EI: Income Statement not counted in total income (exempt incomes)
Schedule PTI: Income data qualified as pass-through from an investment fund or business trust.
Schedule TPSA: Section 92CE(2A) secondary adjustment to transfer price
Schedule FSI: Income information from tax benefits and outside of India
Schedule TR: Tax relief statement sought as per sections 90, 90A, and 91.
Schedule FA: Information regarding income outside of India and foreign assets.
Schedule 5A: Information on the Portuguese Civil Code about how income is divided between spouses.
Schedule AL: Assets and liabilities computed at the end of the year (applicable only where total income exceeds the amount of INR 50 lakhs)
Schedule GST: gross receipts/turnover information submitted for the purpose of GST.
Part B-TI: Calculation of the total income.
Part B-TTI: Total income tax owed.
Verification
How can I file ITR-3 Form?
All taxpayers are mandated by the government to file ITR-3. This can be done online or electronically. Submitting the return electronically will require a digital signature. Once you send the return electronically, submit Form ITR-V for return verification. An acknowledgement of the same will be shared via email after you submit the form.
You can also download it directly from the IRS website. Upon downloading, remember to sign it digitally and send it back to the CPC headquarters of the Income Tax Department in 120 days of e-filing. Also, note that the ITR-3 is an annexure-free form, so it need not be sent with any other documents.
How to fill out the verification document?
A taxpayer should complete the verification section of the income tax return when filling out the data. However, note that as per Section 277 in the Income-Tax Act of 1961, one can face longtime imprisonment and a hefty fine if caught for making a false declaration of any information while filing the return.
How can LawgicalIndia help you in filing ITR 3?
The ITR 3 filing procedure is a little complicated. In that scenario, a professional business consultancy firm like Lawgical India may assist you with your ITR filing.
If you require any assistance with ITR filing, please contact the tax specialists at Lawgical India. You can also file your ITR using our ITR software, or you can contact us immediately for your ITR filing at an affordable price.
