ITR-3 Form for Income from Business or Profession

Author
By Hiral Vakil on March 7, 2019

What is ITR-3?

ITR-3 form is meant for individual or HUF having income from business or Profession and from partnership firm/LLP. In simple words, ITR-3 needs to be filed when income is earned under the head “Profit or gain of business or profession” and tax audit to a taxpayer.

The due date to file ITR-3
30th September of the assessment year

Who can file ITR-3?

The ITR-3 form can be filed by the person who is:

  • A partner in a partnership firm or LLP
  • Earning income from salary, house property, capital gain, other source and under the head “Profits or gains of business or profession” and not eligible to opt for Presumptive Taxation Scheme.
ITR for Income from Partnership Firm View Plan

Who can not file ITR-3?

Any separate legal entity other than HUF can not file ITR-3 i.e, Partnership Firm, LLP, Company, Charitable Trust, etc can not file ITR-3.

Structure of ITR-3

Part/ Schedule Heading Fields
PART A- GENERAL Personal Information Name, Address, Date of Birth, PAN, contact details etc.
Filing Status Employer Category, Tax status, Residential status, Return filed under section etc.
PART B-TI Computation of total income  
PART B-TTI Computation of tax liability on total income The Bank Account details, Verification and TRP details (if any) are to be provided here
Schedule IT Details of Advance Tax and Self Assessment Tax Payments BSR code, Date of Deposit, Chalan number, Tax Paid
Schedule TDS TDS1: Details of Tax Deducted at Source from SALARY TAN of Employer, Employer Name, Tax Deducted etc.
Schedule TDS TDS2: Details of Tax Deducted at sources from Income other than Salary (As per FORM 16A) TAN, Name of Deductor, Year of Deduction, Tax deducted etc.
Schedule TDS TDS3: Details of tax deducted at source on sale of immovable property u/s 194IA (Form 26QB) PAN & Name of the Buyer, TDS-certificated Number, TDS Amount etc.
Schedule TCS Details of Tax Collected at Source (TCS) [As per Form 27D issued by the collector] TDS/TCS Number of the Collector, Name of the Collector, Tax Collected, Amount being Claimed
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 IF Information regarding partnership firm in which you are a partner Name and PAN of the Firm, Whether the firm is liable to audit?, Percentage share in profit, Amount of share in the profit, Capital balance as on 31st March in the firm.
Schedule BP Details of Income from Firm of which you are a partner Salary, bonus, commission or remuneration, Interest received from the firm on capital, expenses, Net Income
Schedule CG 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 etc.
Schedule OS Income from Other Sources Dividend, Interest, Rental Income from machinery, Winnings from lotteries, Crossword puzzles, Races, Games etc.
Schedule CYLA Details of income after set­off of current year losses  
Schedule BFLA Details of income after Set off of Brought Forward Losses of earlier years  
Schedule CFL Details of Losses to be carried forward to the future years  
Schedule VI-A Deductions under Chapter VI-A Deductions under section 80C, 80CCC, 80CCG, 80D, 80DDB, 80E, 80G, 80TTA etc.
80G Details of donations Name of Donee, Address, city or district, state code, PAN of Donee, amount etc.
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 Rs. 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 etc.
Schedule FSI Details of Income from outside India and tax relief 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 the spouse, Income received under different heads, Amount appointed in the hands of the spouse, TDS details etc.
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 etc.
Schedule AL Asset and Liability at the end of the year (other than those included in PART A – BS of the return of the firm in which you are a partner) [Applicable in a case where total income exceeds Rs. 25 Lakh] Particulars of Assets and Liability

ITR-3 Preparing Parts and Schedules

1. General

  • All items must be filled in the manner indicated therein; otherwise the return maybe liable to be held defective or even invalid.
  • If any schedule is not applicable score across as “­­­NA­­­“.
  • If any item is inapplicable, write “NA” against that item.
  • Write “Nil” to denote nil figures.
  • Except as provided in the form, for a negative figure/ figure of loss, write “­” before such figure.
  • All figures should be rounded off to the nearest one rupee. However, the figures for total income/ loss and tax payable be finally rounded off to the nearest multiple of ten rupees.

2. Sequence for filling out parts and schedules

You are advised to follow the following sequence while filing out the form:

  • Part A- General on page 1.
  • Schedules
  • Part B­TI and Part B­TTI
  • Verification
  • Details relating to TRP and counter signature of TRP if return is prepared by him.
ITR Forms, TDS Certificate, Tax Credit Statement and Filing

Documents needed to file ITR-3?

Acquire the given list of documents on the basis of relevant Incomes types in order to indulge in smooth filing process.

Essential documents:

  • PAN (Permanent Account Number)
  • Bank account details
  • TDS certificates
  • Counterfoils of taxes paid
  • Details of original return if filing revised return
  • Details of notice if filing in response to the notice

Documents on the basis of your type of Income:

  • Salary income
    • Form-16/ Salary slips received from your employer and
    • Pension statement/passbook.
  • House/Property Income
    • Address of the property,
    • Co­owner details in case the property is co­owned,
    • In case of house/property loan ­ Interest certificates/repayment certificate from bank,
    • In case of let out property ­ Rent agreement
  • Other sources
    • Savings/current account statements/passbook
    • Interest certificates for deposits/bonds/NSC
    • PPF account statement/passbook
    • Dividend warrants/counterfoils
    • Rent agreement in case of let out machinery
    • Details about receipts of any other incomes
  • Capital Gains
    • For land/building ­ Sales & Purchase deeds, stamp duty valuation
    • Details of improvement costs
    • For securities ­ Contract notes/stock ledgers/trading statement
    • For other capital assets ­ Cost of purchase, cost of improvement & sales receipts
    • Details of expenses incurred on transfer of capital assets
    • Details of investments in order to claim exemptions
    • Capital gains deposit account details if any
  • If you’re eligible for any Tax Breaks, you may need to acquire the relevant documents from the list:
    • PPF account statement/Passbook
    • Fixed deposit certificates/statements
    • Mutual fund NAV statements
    • ELSS/ULIP/NSC investment details
    • Life insurance premium receipts
    • Medical insurance premium receipts
    • Preventive health checkup details
    • Pension fund/ National pension scheme statement
    • House/property loan interest certificate/repayment statement
    • Education loan interest certificate/repayment statement
    • Tuition fees receipts
    • Donation receipts
    • Certificate from specified medical authorities in case of disability
    • Receipts/proof of any other tax saving investment/contributions

How to file the ITR-3?

You can either file your ITR-3 physically or electronically.Since Financial year 2013-14, electronic filing of ITR-3 has been made compulsory for taxpayers having income of more than Rs. 5 Lakhs.

In case of Physical submission:

  • You can submit the ITR-3 in paper form or
  • You can submit the bar-coded return form duly filled.

The department will provide you with an acknowledgement along with the stamp of submission on your copy.

In case of Online / Electronic submission:

  • You can submit the ITR-3 online after digitally signing the same or
  • You can submit the ITR-3 online and subsequently send the signed verification of the filed return in ITR-V to Central Processing Center Bangalore within 120 days of filing.
  • Or, with the newly introduced e-Verification of ITR, you can avoid sending the ITR-V and get done with the entire process within three to five weeks.