In India, every taxpayer needs to file Income Tax Returns or ITR forms disclosing their income-related information to the Income Tax Department. It is a kind of self-declaration by taxpayers containing their personal and financial data, such as assets, income including applicable taxes paid. However, the process often gets cumbersome as there are so many different types of ITR forms available. For instance, people earning their revenue from profits or gains of any business or profession need to file ITR-3 for every Assessment Year. If you fall under this category, this brief guide containing details such as eligibility, filing procedure, and structure of ITR-3 is for you.
Let’s get started!
Individuals and Hindu Undivided Families can fill up the ITR-3 to file their income tax returns. The applicant must either earn income from a proprietary business or a salaried profession.
Income stated under ITR-3 may include income obtained from house rent, salary, pension, capital gains and income from other sources. The applicant can file their ITR-3 within the designated date.
The ITR-3 file has 4 main divisions:
Only an individual or people belonging to a HUF or Hindu Undivided Family and running their own business will be eligible for filing ITR-3 income tax. Furthermore, persons earning income from the following sources are eligible for it:
Also, note that persons who have opted for a presumptive taxation scheme with a business turnover of over Rs. 2 crores need to file ITR-3 within the due date.
Also Read: Section 89 Of The Income Tax Act
ITR 3 filing is not mandatory for all types of taxpayers. However, there are several advantages to doing it.
Individuals or HUFs partnering with another business venture or other professions are not eligible for filing ITR-3. Such individuals are supposed to fill ITR-2 instead.
The due date for filing ITR-3 forms for individuals or HUFs has shifted from 31st October 2021 to 15th February 2022 for the financial year 2021-22.
Using the online portal of the Income Tax Department, any taxpayer can easily file ITR-3 and verify the same. One can follow any of the below-mentioned ways to get it done:
Centralised Processing Centre, Income Tax Department, Bengaluru, Karnataka, 560500
Note that you should send the verification form within 120 days from the day you have filed your ITR. Now let’s check out the steps to file ITR-3 income tax.
Step 1: Visit the e-filing portal of the Income Tax Department to start the process.
Step 2: Click on the right form and fill it up properly. Make sure you verify it after that with your digital signature.
Step 3: Upon successful completion, you will receive an acknowledgement receipt on your registered email ID.
Note that for individuals whose digital signatures are not available, the verification can be done using the ITR-V or Income Tax Return Verification form. Assessees generally receive it via email once they file their income tax returns. After signing it, the form must be sent back to the IT Department’s official address.
This procedure is not available for everyone; individuals aged above 80 years can opt for this. Apart from that, those having an annual income of below Rs. 5 lakh can also go for this offline method of filing ITR-3.
To initiate the process, you need to download the form first. For that, follow these steps:
Step 1: Start by logging into the e-filing website of the Income Tax Department of India.
Step 2: Find ‘offline Utilities’ under the ‘Download’ tab and click on it.
Step 3: Next, you need to click on ‘Income Tax Return Preparation Utilities’.
Step 4: Now, choose the right Assessment Year and tap on the ‘Excel Utility’ option to download the form.
Once you have extracted the ITR form, make sure to fill it up with accurate details and submit it in a bar-coded or paper form.
Now that you have a clear idea regarding both online and offline methods of filing ITR-3 let’s check how its structure looks for a particular AY.
For AY 2022-2023, ITR-3 consists of the following parts:
Other than that, there are some schedules. These are Schedule-S, Schedule-HP, Schedule-DPM, Schedule DEP, Schedule 112A, Schedule-CYLA-BFLA, etc.
Note that there have been a few changes made in the ITR-3 form for the Assessment Year of 2021-2022. Apart from knowing how to file ITR-3, individuals should also be aware of these changes.
Find the list of changes made in the ITR-3 form below:
You can find such changes happening in ITR-3 every Assessment Year. To avoid any kind of confusion, one should always be updated regarding these revisions.
Taxation on Employees Stock Option Plan (ESOP) is collected both when shares are allotted and when they are sold. The tax amount is calculated as the difference between the exercise price and market price on the date of ESOP transactions. The employee can treat this difference as the primary requisite.
Remember, filling up the verification document is an equally important part of filing your Income Tax Returns. So, when you file ITR-3, keep that in mind and refrain from making any kind of false statement in it. Such activities will be considered a punishable offence under section 277 of the IT Act.
Ans: Yes, it is necessary for the applicant to provide income details in ITR-3 of Income Tax Returns. Note that information related to income-generating from businesses like hiring, plying, or leasing of goods carriages should be mentioned.
Ans: No, the eligibility criteria in this aspect state that an individual or HUF earning income by practising a profession or from a business should file ITR-3. However, if you are earning the revenue as a partner of a firm, you will have to file ITR-2.
Ans: The Part A of ITR-3 basically includes taxpayers’ personal information, such as the following:
– Full Address
– Status (Individual/HUF)
– Post Office/Street/Road
– DOB (DD/MM/YY format)
– Town/District/City/PIN code
– Residential or office contact number
– Email address
– Aadhaar details
Ans: Assessees need to file ITR-3 electronically in these cases:
If the resident assessee has assets outside the country, he/she can file the ITR-3 electronically.
In case Assessees have an overall income of over Rs. 5 lakh
If Schedule TR and Schedule FSI is applicable to an assessee claiming relief u/s 90A, 91, or 90.
Ans: The full form of EVC is Electronic Verification Code. This is basically a 10-digit code comprising both numerals and letters. You receive it on your registered mobile number at the time of verifying anything electronically.
Disclaimer: Mutual Fund investments are subject to market risks, read all scheme-related documents carefully.
This article has been prepared on the basis of internal data, publicly available information and other sources believed to be reliable. The information contained in this article is for general purposes only and not a complete disclosure of every material fact. It should not be construed as investment advice to any party. The article does not warrant the completeness or accuracy of the information, and disclaims all liabilities, losses and damages arising out of the use of this information. Readers shall be fully liable/responsible for any decision taken on the basis of this article.
|Section 194IB||Section 44AA||Section 80E|
|Section 195||Section 80EEA||Section 80DD|
|Section 80CCC||Section 80GG||Section 80 G|
|Section 54F||Section 1941A||Section 10|
|Section 194Q||Section 192||Section 269SS|
|Section 80DDB||Section 44AD||Section 194C|
|Section 194A||Section 194H||Section 80D|
|Section 80C||Section 80C, 24(b), 80EE & 80EEA||Section 234A|
|Section 50C||Section 80C||Section 80EEA|
|Section 194B||Section 194J||Section 206C|
|Section 80CCG||Section 80 EEB||Section 24Q|
|Section 40b||Section 194C||Section 54EC|
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