Since filing an income tax returns can be a complex process, it can be done hassle-free through online filing. Thanks to Income Tax Department who have brought up various income tax forms to simplify the filing of income tax. The ITR-3 Form comes into light when any individual or HUF wants to file for ITR. The ITR Form 3 is applicable to individuals and HUFs who have income from business or profession. The person having income from the following source are eligible to file ITR-3.
What is ITR-3 Form?
Individual taxpayers as well as Hindu Undivided Family (HUFs) can use ITR Form 3 to file for income tax returns if they earn an income through profits and gains from business and profession. In a broader sense, individuals who have earned income through salary or pension, a house property or other sources of income.
Components of ITR-3 Form for AY 2022-23
Form ITR-3 consists of various sections mentioned below-
- Part A
- Part B
We will discuss the structure of ITR-3 Form in detail below-
Part A of ITR 3 Form
Part A-GEN: Contains general information and the nature of a business
Part A- Manufacturing Account: Presents a manufacturing account for a given financial year
Part A- Trading Account: It has a trading account for a given financial year
Part A-P&L: Reveals the profits and losses for a given financial year
Part A-BS: It presents the balance sheet as of the year-end for the proprietary business
Part A-OI: This part includes other information. However, it is optional in a case that is not liable for audit u/s 44AB
Part A-QD: It contains quantitative details, which is also optional in a case that is not liable for audit u/s 44AB
Schedules of ITR 3 Form
Schedule S: Calculates income falling under the ‘Salaries.’
Schedule BP: It computes a taxpayer’s income from a profession or business.
Schedule HP: This section calculates one’s income under ‘Income from House Property.’
Schedule DPM: Determines depreciation on plant and machinery as per the Income Tax Act.
Schedule DOA: It evaluates depreciation on other assets as per the Income Tax Act.
Schedule DCG: Calculation of capital gains on the depreciable assets’ sales.
Schedule CG: Computation of income under the ‘Capital Gains.’
Schedule DEP: Summary of depreciation on all the assets as per the Income Tax Act.
Schedule ESR: It includes deduction under Section 35, i.e., expenditure on scientific research.
Schedule 112A: This requires taxpayers to provide details of capital gains wherein Section 112A is applicable.
Schedule OS: Computes one’s income under the head of ‘Income from Other Sources.’
Schedule 115AD(1)(iii) provision: Applicable for non-residents, this schedule requires details of capital gains wherein Section 112A is applicable.
Schedule CYLA: It is a statement of income after setting off losses in the current FY.
Schedule BFLA: It is a statement of income after setting off unabsorbed losses brought forward from preceding financial years.
Schedule CYLA-BFLA: This presents a statement of income after setting off the current year’s losses as well as unabsorbed losses brought forward from earlier financial years.
Schedule CFL: It presents a statement of losses that shall be carried forward to subsequent financial years.
Schedule ICDS – This section reveals the effect of income computation disclosure standards (ICDS) on profits.
Schedule UD: Indicates unabsorbed depreciation.
Schedule 10AA: It calculates deductions under Section 10AA.
Schedule RA: Includes details of donations to institutions entitled for deduction under Section 35(2AA),35(1)(ii), 35(1)(iia), or 35(1)(iii).
Schedule VIA: Includes deductions from one’s total income under Chapter VI-A.
Schedule 80G: This section contains details of donations subject to deductions u/s 80G.
Schedule 80IC/ 80-IE: Calculates deductions u/s 80-IC or 80-IE.
Schedule 80IB: Computes of deductions u/s 80IB.
Schedule 80IA: It determines deductions u/s 80IA.
Schedule AMT: Determines a taxpayer’s alternate minimum tax payable u/s 115JC.
Schedule AMTC: It calculates one’s tax credit u/s 115JD.
Schedule SPI-SI-IF: Mentions specified persons (spouse, minor, etc.) or association of persons that are included in the income of an assessee.
Schedule EI: Statement of income that is not included in one’s total income.
Schedule TPSA: Refers to secondary adjustment of taxes according to Section 92CE(2A).
Schedule FSI: Details of a taxpayer’s income earned outside India and applicable tax relaxations.
Schedule PTI: It indicates the income details received from business trusts or investment funds as per Section 115UA, 115UB of the Income Tax Act.
Schedule TR: Statement of tax relief claimed by an assessee under Section 90, 90A, or 91.
Schedule 5A: Information on the apportionment of income between spouses of an individual.
Schedule DI: It is a schedule of tax-saving deposits, payments, or investments that are subject to deduction or exemption.
Schedule FA: Details of a taxpayer’s income from sources outside India as well as foreign assets.
Schedule AL: It reveals the assets and liabilities at the end of a financial year. This is only applicable for taxpayers with a total income exceeding ₹50,00,000.
Schedule GST: Information regarding the turnover or gross receipts reported for GST.
Part B of ITR 3 Form
Part B-TI: Computation of a taxpayer’s total income.
Part B-TTI: Computes the tax liability on one’s total income.
The ITR-3 structure contains verification to authenticate the information furnished above.
Eligibility Criteria to File ITR 3 for AY 2022-23
There are certain conditions under which an individual and HUF can file ITR 3. Mentioned below are some of them:
- Income from house property- One or more
- Income generated from short-term or long-term capital gains
- Income from business or profession under a proprietorship business owned by HUF or individual
- Income from lottery, horse race, gambling
- Income from foreign assets belonging to individuals
How to Download ITR 3 Form?
The Income Tax Department offers easy way for individuals and HUFs to download ITR-3 Form. Follow the below mentioned steps to do so-
Step 1: Visit the Income Tax Department website at- https://www.incometax.gov.in/iec/foportal
Step 2: On the right-hand side, you will find ‘Downloads’ tab. Click it.
Step 3: Click ‘Income Tax Return’ available on the left hand side of the screen.
Step 4: Find ITR-3 and then click ‘ITR 3 Notified Form_AY 2022-23’
Step 5: Now you can download the ITR-3 Form in the PDF format.
How to File ITR 3?
The Income Tax Department offers two methods to file ITR 3 Form i.e. Online and Offline. Given below is process involved in filing ITR 3:
Taxpayers need to login to the Income Tax Department e-filing portal and fill in the details required. After filing the return online, one can verify it using the digital signature. After successful verification, taxpayers will receive acknowledgement receipt on their registered email ID.
Taxpayers who fulfil the criteria mentioned below are eligible to file ITR 3 offline-
- Individuals of 80 years of age or more
- Individual having income less than ₹5 lakhs and do not possess any IT refund request
The above-mentioned individuals can submit ITR 3 through physical paper form or bar-coded form as per their requirement.
ITR-3 Form FAQs
The due date of filing ITR 3 is 31st July 2023.
Yes. You can file ITR 3 without any audits.
No. ITR 3 is only applicable to HUFs and individuals who earn income through business or profession.