ITR 3 Form for Income from Business or Profession

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Hiral Vakil

Business and Profession Income
Income Heads
ITR Form
ITR-3

ITR 3 form means having income from business or Profession and from partnership firm/LLP for individual or HUFs. In simple words, ITR 3 needs to be filed when income is earned under the head “Profit or gain of business or profession“. It is also filed when Tax Audit is applicable.

For FY 2019-20, due to COVID-19 the due date for filing ITR has been extended to 30th November 2020 for all taxpayer.
Tip
For FY 2019-20, due to COVID-19 the due date for filing ITR has been extended to 30th November 2020 for all taxpayer.

Up to FY 2018-19 (AY 2019-20), it was not mandatory to file Income Tax Return if the total income was less than the basic exemption limit. However, Budget 2019 inserted the seventh proviso to Section 139(1). As per this new provision, if a taxpayer has entered into high-value transactions, it is mandatory to file the ITR even if the total income does not exceed the basic exemption limit. The high-value transactions can be either of the following:

  1. If the taxpayer has deposited more than INR 1 Cr in a current account
  2. If the taxpayer has incurred foreign travel expense of more than INR 2 lacs
  3. Or, if the taxpayer has incurred electricity expense of more than INR 1 lac

Who can File ITR Form Number 3?

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

ITR for Proprietors with Business Income
CA Assisted Income Tax Return filing for Individuals & HUFs with business income from Proprietary Firm.
[Rated 4.8 stars by customers like you]
ITR for Proprietors with Business Income
CA Assisted Income Tax Return filing for Individuals & HUFs with business income from Proprietary Firm.
[Rated 4.8 stars by customers like you]

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.

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Structure of ITR Form 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 the 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
Check which ITR Form to file?
Income Tax Return Forms to file depends on your Income Source, Residential Status, and other financial situation. Know which ITR Form you should file.
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Check which ITR Form to file?
Income Tax Return Forms to file depends on your Income Source, Residential Status, and other financial situation. Know which ITR Form you should file.
Explore

ITR 3 Preparing Parts and Schedules

1. General

2. Sequence for filling out parts and schedules

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

Check Tax Audit Applicability u/s 44AB
Check Income Tax Audit applicability u/s 44AB to file Tax Audit Report Form 3CB - 3CD with your Income Tax Return.
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Check Tax Audit Applicability u/s 44AB
Check Income Tax Audit applicability u/s 44AB to file Tax Audit Report Form 3CB - 3CD with your Income Tax Return.
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Documents needed to File ITR 3 Form?

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

Essential documents

Documents on the basis of your type of Income

Income Tax Calendar
Don't miss another Income Tax due date. Check out this amazing tax calendar for 2020 by Quicko.
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Income Tax Calendar
Don't miss another Income Tax due date. Check out this amazing tax calendar for 2020 by Quicko.
Explore

How to file the ITR 3?

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

In case of Physical submission

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

In case of Online / Electronic submission

Sample ITR 3 Form

Latest Sample of ITR-3
Sample from Income Tax Department
30th September
The due date for taxpayers with Business and Profession Income to whom Tax Audit is applicable.
30th September
The due date for taxpayers with Business and Profession Income to whom Tax Audit is applicable.

FAQs

What is the due date for taxpayers to whom tax audit is not applicable?

The due date to file ITR-3 is 31st July of the next financial year for taxpayers to whom tax audit is not applicable.

Can I file ITR after the due date?

Yes, ITR-3 can be filed after the due date. It will be considered as a belated return. And late filing fees will be levied while filing a belated return.

Can I file ITR-3 if I am a partner in Partnership Firm?

Yes, partners in partnership firm needs to file ITR-3. And needs to provide specific details relating to income earned from partnership firm.

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