What is ITR-3 Filing?

ITR 3 Form is applicable for the individuals and Hindu Undivided Families that earn profit and gains from business or profession.

If the individual or the Hindu undivided family is having an income as a partner of a partnership firm that is carrying out business then ITR-3 cannot be filed as in such cases the individual is required to file ITR-2.

Structure of ITR-3 Form

ITR-3 is divided into:

Part A includes-

Part A-GEN: General information and Nature of Business
Part A-BS: Balance Sheet as of March 31, 2020, of the Proprietary Business or Profession
Part A- Manufacturing Account: Manufacturing Account for the financial year 2019-20
Part A- Trading Account: Trading Account for the financial year 2019-20
Part A-P&L: Profit and Loss for the Financial Year 2019-20
Part A-OI: Other Information (optional in a case not liable for audit under Section 44AB)
Part A-QD: Quantitative Details (optional in a case not liable for audit under Section 44AB)

Schedules include:

Schedule-S: Computation of income under the head Salaries.
Schedule-HP: Computation of income under the head Income from House Property
Schedule BP: Computation of income from business or profession
Schedule-DPM: Computation of depreciation on plant and machinery under the Income-tax Act
Schedule DOA: Computation of depreciation on other assets under the Income-tax Act
Schedule DEP: Summary of depreciation on all the assets under the Income-tax Act
Schedule DCG: Computation of deemed capital gains on the sale of depreciable assets
Schedule ESR: Deduction under section 35 (expenditure on scientific research)
Schedule-CG: Computation of income under the head Capital gains.
Schedule 112A: Details of Capital Gains where section 112A is applicable
Schedule 115AD(1)(iii)Provision: For Non-Residents Details of Capital Gains where section 112A is applicable
Schedule-OS: Computation of income under the head Income from other sources.
Schedule-CYLA-BFLA: Statement of income after set off of current year’s losses and Statement of income after set off of unabsorbed loss brought forward from earlier years.
Schedule-CYLA: Statement of income after set off of current year’s losses
Schedule BFLA: Statement of income after set off of unabsorbed loss brought forward from earlier years.
Schedule CFL: Statement of losses to be carried forward to future years.
Schedule- UD: Statement of unabsorbed depreciation.
Schedule ICDS: Effect of Income Computation Disclosure Standards on Profit
Schedule- 10AA: Computation of deduction under section 10AA.
Schedule 80G: Statement of donations entitled for deduction under section 80G.
Schedule RA: Statement of donations to research associations etc. entitled for deduction under section 35(1)(ii) or 35(1)(iiA) or 35(1)(iii) or 35(2AA)
Schedule- 80IA: Computation of deduction under section 80IA.
Schedule- 80IB: Computation of deduction under section 80IB.
Schedule- 80IC/ 80-IE: Computation of deduction under section 80IC/ 80-IE.
Schedule VIA: Statement of deductions (from total income) under Chapter VIA.
Schedule SPI-SI-IF:: Income of specified persons(spouse, minor, etc) includable in the income of the assessee, Income chargeable at special rates, info partnership firms in which assessee is a partner.
Schedule AMT: Computation of Alternate Minimum Tax Payable under Section 115JC
Schedule AMTC: Computation of tax credit under section 115JD
Schedule SPI: Statement of income arising to spouse/ minor child/ son's wife or any other person or association of persons to be included in the income of the assessee in Schedules-HP, BP, CG, and OS.
Schedule SI: Statement of income which is chargeable to tax at special rates
Schedule-IF: Information regarding partnership firms in which the assessee is a partner.
Schedule EI: Statement of Income not included in total income (exempt incomes)
Schedule PTI: Pass-through income details from a business trust or investment fund as per section 115UA, 115UB
Schedule TPSA: Secondary adjustment to transfer price as per section 92CE(2A)
Schedule FSI: Details of income from outside India and tax relief
Schedule TR: Statement of tax relief claimed under section 90 or section 90A or section 91.
Schedule FA: Statement of Foreign Assets and income from any source outside India.
Schedule 5A: Information regarding apportionment of income between spouses governed by Portuguese Civil Code
Schedule AL: Asset and Liability at the end of the year(applicable where the total income exceeds Rs 50 lakhs)
Schedule DI: Schedule of tax-saving investments or deposits or payments to claim deduction or exemption in the extended period from 1 April 2020 until 30 June 2020
Schedule GST: Information regarding turnover/ gross receipt reported for GST
Part B-TI: Computation of Total Income.
Part B-TTI:Computation of tax liability on total income.
Verification

How to file Form ITR 3?

ITR 3 Form can be filed either offline or online:

1. Offline: The returns can be furnished in a paper format through a bar-coded return.
2. Online: The returns can be furnished electronically using the Digital Signature Certificate. This data can be transmitted after submitting the verification of the return.

The assessee must have two print copies of the ITR 3 Form when he is filing the returns online.

Electronic returns can be filed when:

The assessee is a resident of India or if the signing authority is located outside India.

The assessees with more than Rs.5 lakh total income are required to furnish the returns electronically.

Assessees that are claiming relief under Section 90, 90A,91 for whom the schedule FSI and Schedule TR that applies must file the returns electronically.

Document Required for ITR-3 Return Filing

Form 16 / Salary Slips(in case of income from salary)

Rental Agreement if any

Proof of Rental Income if any

Proof of Investments to claim Tax Exemption

Form 26AS

Monthly Purchase Bill

Monthly Sales Bill

Purchase Return Details

Tax Paid Challans for GST

Day to Day Administration expenses and General expenses details

Fixed Assets Invoice copy(if Applicable)

Investments details made by Cash

Investments details made through Bank

Proof of Source of Cash-in-flow and Cash-out-flow

Outstanding receivables and payables

Bank Statement

Break-up of Bank Statement

Loan Details from Bank

Proof of Foreign Income (if Applicable)

Details of Foreign Assets(if Applicable)