Last updated on February 8th, 2023
Income Tax Return Form 3 (ITR-3) is 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). Electronic filing of the return has been made compulsory for taxpayers. However, in order to file the ITR, you need to be registered on the e-filing portal. The due date to file this return:
- Non-audit cases is is 31st July of the next financial year
- Audit cases is 30th September of the next financial year.
Who should file ITR-3?
The persons having income from following sources are eligible to file ITR 3 :
- Carrying on a business or profession (both tax audit and non-audit cases)
- Taxpayers registered under presumptive taxation scheme and having a turnover of more than 2 crore during the financial year
- 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.
- The return shall also include income from House property, Salary/Pension, capital gains and Income from other sources
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How to file ITR 3?
A taxpayer has to compulsorily file ITR-3 online from the e-filing portal of the income tax department. The ITR-3 can be filed Online/Electronically:
- Prepare ITR 3 offline using Tax Return Preparation Utility and submit it from your Login on Income Tax Website OR
- Further, you can also prepare and submit it online using E-Return Intermediary (ERI) like Quicko.
- You can furnish the return electronically under digital signature or by submitting the verification of the return in Form ITR-V/or E-verifying using other modes.
- Once e-verified using digital signature you will receive the acknowledgement receipt on their registered email id.
Structure of ITR-3
| Part/ Schedule | Heading | Fields |
|---|---|---|
| PART A- GENERAL | Personal Information | Name, Address, Date of Birth, PAN, contact details. |
| Filing Status | Employer Category, Tax status, Residential status, Return filed under the section. | |
| PART B-TI | Computation of total income | Total Income from all income sources, Losses of the current year set off, Gross Total Income, Deductions under Chapter VI-A. |
| PART B-TTI | Computation of tax liability on total income | The Bank Account details, Verification, and TRP details (if any) are to be provided. |
| Schedule IT | Details of Advance Tax and Self Assessment Tax Payments | BSR code, Date of Deposit, Challan number, Tax Paid |
| Schedule TDS | TDS-1: Details of Tax Deducted at Source from SALARY | TAN of Employer, Employer Name, Tax Deducted, etc. |
| TDS-2: Details of Tax Deducted at sources from Income other than Salary (As per FORM 16A) & Details of tax deducted at source on sale of immovable property u/s 194IA (Form 26QB) | TAN, Name of Deductor, Year of Deduction, Tax deducted, etc. | |
| Schedule TCS | Details of tax collected at source | TAN of the collector, Name of Collector, Tax Collected, etc. |
| Manufacturing Account | Manufacturing Account for the financial year | Fill in the opening inventory, purchases, direct wages, direct expenses, factory overheads and closing stock. |
| Trading Account | Trading Account for Financial Year | Fill up the details of Trading Account for the financial year such as Sales/Gross receipts of business/profession, duties, taxes and cess, etc. Further, in respect of supplies, closing stock and opening stock of finished goods, purchases, direct expenses, duties/taxes etc. |
| P&L | Profit and Loss Account for the financial year | In case you were required to maintain regular books of accounts for the proprietary business or profession, please fill up details at item No. 13 to 60. In case you are not required to maintain regular books of accounts, please fill up details at item No. 61-65 falling into respective income sections |
| Balance-sheet | Balance Sheet as on 31st day of March | Balance Sheet of the business or profession as on 31st March of the FY in respect of the proprietary business or profession carried out. I t shall include: Creditors, Debtors, Bank balance, Fixed Assets, etc. |
| Schedule OI | Other Information | Part A-OI, contains details of allowances & disallowances under Income tax act. Fill up the information of items which are applicable. |
| Schedule QD | Quantitative details | In Part A-QD, the quantitative details of trading and manufacturing account are required to be furnished in respect of principal items. |
| Schedule S | Details of Income from Salary | Name and PAN of the Employer, Address of the Employer, Salary, Perquisites, Allowance, etc. |
| Schedule HP | Details of Income from House Property | Details of House Property, Name and PAN of the Co-owners and Tenants, Details of Rent Income, Interest payable on Borrowed Capital, etc. |
| Schedule BP | Computation of income from business or profession | Income chargeable under the head ‘Profits and gains of business or profession’ is computed starting from the net profit before taxes arrived at in the profit and loss account |
| Schedule DPM | Depreciation on Plant and Machinery(Other than assets on which full capital expenditure is allowable as deduction under any other section) | It provides for computation of depreciation admissible under the Income-tax Act for the year in respect of plant and machinery |
| Schedule DOA | Depreciation on other assets | Computation of depreciation admissible under the Income-tax Act for the year in respect of other category of assets – land, building, furniture and fittings, intangible assets and ships. |
| Schedule DEP | Summary of depreciation on assets | It contains a summary of depreciation admissible under the Income-tax Act for the year in respect of all category of assets |
| Schedule CG | Income from Capital Gains | Details about the Short term and Long term Capital gains, Sales consideration, Cost of Acquisition, Deductions under Section 54, 54B, 54EC, 54F, 54GB. |
| Schedule OS | Income from Other Sources | A dividend, Interest, Rental income from machinery, Winnings from lotteries, Crossword puzzles, Races, Games. |
| Schedule CYLA | Details of income after setoff of current year losses | Details of current year losses and its Inter Headset off |
| Schedule BFLA | Details of income after Set off of Brought Forward Losses of earlier years | Details of brought forward losses set off against current year’s income, total brought forward losses set off. |
| Schedule CFL | Details of Losses to be carried forward to the future years | Total of earlier year losses, current year losses, Total of carried forward to future years. |
| Schedule VI-A | Deductions under Chapter VI-A | Deductions under section 80C, 80CCC, 80CCG, 80D, 80DDB, 80E, 80G, 80TTA. |
| 80G | Details of Donations | Name of Donee, Address, City or District, State Code, PAN of Donee, Amount. |
| Schedule SPI | The income of specified persons (spouse, minor child, etc.) included in the income of the assessee (income of the minor child, in excess of INR 1500 per child, to be included) | Name and PAN of Person, Relationship, Nature of Income, Amount. |
| Schedule SI | Income chargeable to income tax at special rates | Description of Special Rate Income, Special Rate, Income, Taxable Income after adjusting min. chargeable to tax, Tax thereon. |
| Schedule EI | Details of Exempt Income (Income not to be included in Total Income) | Interest income, Dividend, Agricultural Income. |
| Schedule PTI | Details of Income from Business Trust or Investment Fund | Details of Income earned from Business Trust or Investment Fund as per section 115UA, 115UB. |
| Schedule FSI | Details of Income from outside India and tax relief | A country, Head of income, Income from outside India, Tax paid outside India, Tax payable in India, Relevant article of DTAA if relief is claimed u/s 90 or 90A |
| Schedule TR | Summary of tax relief claimed for taxes paid outside India | Details of tax relief claimed |
| Schedule 5A | Information regarding the appointment of income between spouses governed by Portuguese Civil Code | Name and PAN of a spouse, Income received under different heads, Amount appointed in the hands of the spouse, TDS details. |
| Schedule FA | Details of Foreign Assets and Income from any source outside India | Details of foreign bank accounts, financial interest in any entities, Immovable Properties, Other Capital Assets. |
| Schedule AL | Details of Assets and Liabilities | Details of an immovable asset, Details of a movable asset, Interest held in the asset of a firm or AOP. |
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FAQ
Can we file ITR 3 without balance sheet?
If you have business income, you need to fill Business head income(BP), Balance Sheet, Trading Account, Profit and Loss Account, Quantitative Details, Depreciation (If claimed), Deductions Chapter VI-A, Tax paid, TDS, etc. You need to check which schedules are applicable to you and fill the requisite data in it.
Is quoting of Aadhaar Number mandatory?
Yes, it is mandatory to mention the Aadhaar number in the return of income or Aadhaar Enrolment ID if applied for.
How can I download ITR 3 utility?
Follow below steps to download ITR Utility:
1. Visit Income Tax E-filing Portal
2. Go to “Income Tax Return Preparation Utilities”.
3. Select your Assessment Year.
4. Download the utility (Excel/Java)
Where do we give disclosure of unexplained income and Dividend Income?
New fields have been inserted in schedule ‘Other Sources’ to declare unexplained credit or investment and dividend received from domestic companies. Further, such persons cannot opt for ITR 1 Sahaj.
Hey @TeamQuicko
Can you tell me about ITD’s new ITR filing utility for AY 2021-22?
Hey @HarshitShah
To improve the tax filing process, the Income Tax Department has decided to do away with the excel and java-based utility and has launched a new offline JSON-based utility for the AY 2021-22. The new utility will help taxpayers import prefilled data and edit it before filing the income tax return (ITR).
The taxpayers can download the pre-filled data from the income tax e-filing portal and fill in the rest of the data. This imported prefilled data can be edited to change basic information such as address and all. Currently, the utility can be used to file ITR1 to ITR 4. ITD has also released a step-by-step guide to using the utility.
Hope this helps!
Is it possible to file ITR online without an account on the Income Tax e-filing portal?
What should be done in case of discrepancies in actual TDS and TDS credit under Form 26AS?
Hey @Amitabh_Verma
It is mandatory to create an account on the Income Tax e-filing portal to file your ITR online. It is a hassle-free quicko process. One can register on the portal by providing relevant details such as user type, PAN, first name, surname, date of birth, and fill in the registration form.
Hey @Niraj
Many times mismatches and discrepancies in actual TDS and TDS credit under Form 26AS happen because of wrong information provided in the TDS return. One can approach the employer/deductor to file a revised TDS return after making the necessary corrections.
The income-tax department allows an assessee to mention the reason for mismatch in the online portal in answer to a notice sent by them.
Hope this helps!
Hi, actually I filed ITR 1(A.Y. 2013-14) due to notice served in Jan month.
The ITR is pending for verification. Ask the options aren’t available for me client i.e Aadhar verification,evc etc. Only thing is I got my clients DSC. but option of DSC for e-verification is not showing. I can’t send CPC to Bengaluru since it will take time. How can I use DSC to e-verify my already filed return
Hi @Arsheen
The option to e-verify ITR using DSC is to be selected while filing. Once you have filed your ITR only option available for e-verification is EVC/Aadhar OTP or sending ITR V to CPC Bangalore. You have 120
days from the date of e-Filing to e-verify your ITR.
So if 120 days are not over you can send the signed ITR V to CPC Bangalore to get it e-verified and processed.
Hope this helps
Hi @Sharath
It is suggested to file ITR as NRI in India if you have trading transactions even if there are losses.
If you do not file ITR then there are high chances of your PAN getting flagged by the IT department for non-filing of ITR.
Also, If you file the ITR on time you can take benefit of carry forwarding the losses and setting off those losses against the profits in future years.
I have started an HUF by infusing funds by collecting gifts from HUF members. If I invest in Shares, Equity MF, from that Capital (Collected as gifts from members), and earn income in the name of HUF, will that income be clubbed with the income of the members?
In a way that will be the outcome of the business (trading and investing of shares) done by HUF. And there will be a degree of efforts and luck involved, not a fixed income instrument as FD, etc.