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Who can file ITR -3 Form?

ITR-3 can be filed by any of the person having following income:

  • Income from salary/pension.
  • Income from more than one house property
  • Taxpayers having registered under presumptive taxation and having turnover of more than Rs 2 Cr.
  • Individuals and HUFs who are partners in a firm but do not carry out business in the proprietorship. Such income may include salary, bonus,commission, interest or remuneration from the partnership.

How to file form ITR-3?

PART A:General information
Personal information: It contains information like First name,Middle name,Last name,PAN,Address,Date of birth,Aadhar number,Mobile number, Email id etc.
Filing Status: Mention :
  • Filing u/s
  • If revised/defective/modified then enter Receipt no. and Date of filing original return.
  • Or files in response to notice u/s
  • If the form is filed in response to a notice, then please enter the Unique Number Date of such notice or Order.
  • Residential Status in India of both individuals and HUF
  • Do you want the benefit to be claimed u/s 115H
  • Are you governed by the civil code of potuguese as per section 5A.
  • Whether this return was filed by a representative assessee.
  • Whether you held the position of a director in a company at any time during the previous year?
  • Whether unlisted equity shares were held by you at any time during the previous year?
  • In case of a non resident whether you have a Permanent Establishment(PE) in India?
  • Whether assessee is located in an international financial centre (IFSC) and derives income solely in convertible foreign exchange?
Audit Information:
  • Are you liable u/s 44AA,44AB,If yes; then provide the information required.
  • Are you for audit u/s 92E If yes; then provide the required information.
  • If liable to audit under other act then mention the name of such act and other relevant information
Nature of business

Enter the name of business,business code and description of business and other relevant information in PART A as under

Balance Sheet  In this part, please fill in  the details of the balance sheet items as on 31st march,2019 in the given format. In case the regular books of accounts are not maintained,then fill up the summary details sought at part 6. And leave out other parts.
Manufacturing Account In this part details of the manufacturing account for the financial year 2018-2019 need to be filled. In case you are not required to maintain the books of accounts then fill up the item no.61 or 62 or 63 or 64 of part A - P&L, whichever is applicable.
Trading Account: In this particular part, you need to fill up the details of the Trading account for financial year 2018-19,  in case the books of accounts are not required to maintain, then fill up the details in items 61,62,63 or 64 of part -A of P&L.
P&L Account: In this part fill in the details of the profit and loss account for FY 2018-19, in case books of accounts are not required to be maintained, then fill up the items 61,62,63,and 64 of part-A of P&L.
ITEM NO. 61: If section 44AD applicable
ITEM no. 62: If section 44ADA applicable
ITEM NO.63: if section 44AE applicable.
ITEM No. 64: If you are not required to maintain books of accounts in respect of business or profession.
ITEM No.65:In case you are engaged in a speculative activity.
Other information: In case books of accounts were required to be audited under section 44 AB , then it is mandatory to fill up the information sought at various items.
Quantitative details: The quantitative details of trading and manufacturing accounts are required to be furnished in respect of principal items.
Schedule S: Details as per salary:

The following information is required:

  • Name, TAN, Address of employer
  • Gross salary
  • Salary as per section 17(1)
  • Value of perquisites as per section 17(2)
  • Profits in lieu of salary u/s 17(3)
  • Total gross salary
  • Less allowances to the extent exempt u/s10
  • Net salary
  • Deductions u/s 16
  • Standard deduction u/s 16
  • Entertainment allowance u/s 16
  • Professional tax u/s 16
  • Income from the head salaried will then be calculated
Schedule HP: Details of Income from House property:

The following information is required:

  • Full address of the property
  • Is property co-owned, if yes name of co-owners,your share in the property, PAN of co owners, Percentage of share of co-owners,
  • Type of house property
  • Name, PAN,TAN of tenants
  • Details related to computation of income:
    1. Gross rent received
    2. Amount of rent which cannot be realised
    3. Tax paid to local authorities
    4. Annual value
    5. Annual value of property owned
    6. 30% of annual value
    7. Interest payable on borrowed capital
    8. Arrears/unrealised rent received during the year less 30%
    9. Total income from house property
    10. Pass through income if any
    11. Income under the head ‘House Property’ shall be computed.
Schedule BP: Computation of Income from Business or Profession
  • In this schedule, income under the head ‘Profits and Gains of business and Profession’ is computed starting from the Net profit before taxes arrived in the profit and loss account.
  • If any amount is reduced from the credit side of profit and loss account to be shown under another head of income, please ensure that the relevant income is exempt or shown under the heads like speculative business, business u/s 35AD,incomes chargeable under other heads etc.
  • Expenses related to these categories of income are added back along with book depreciation and amortisation. The depreciation permissible as per income tax act is permissible.
  • Items NO. 13 to 19 lists out various disallowances of expenses debited to profit and loss account whereas items no. 20 to 25 provides for addition of deemed incomes under various provisions. The aggregate amount of additions and disallowances are auto populated at item no. 26.
  • Items no. 27 to 33 provides various deductions allowed under the act.
  • The net income is computed at item no.35. The profits and gains computed from the special provisions are computed separately under item no. 36. The aggregate of both items no. 35 and 36 is aggregated at item no. 37.
  • In a case where income form activities are covered under rule 7,7A,7B and 8 is included in the P & L A/C, the break up of deemed business income is chargeable
  • under these rules and business income chargeable other than these rules is required to be mentioned in item no. 38
  • Part - B of this schedule provides an option for separate computation of income from speculative business.
  • Part -C of this schedule provides for separate computation of income from specified business u/s 35AD
  • The total income chargeable under the head profits and gains from business or profession is computed in Part D of this schedule
  • Part -E of this schedule provides for intra- head set off of normal business losses with income from specified business and speculative business during current year. Losses from speculative and specified business, if any are not allowed to be set off from normal business income.
Schedule - DPM

It provided for computation of depreciation admissible under income tax act for the year in respect of plant and machinery. This does not include plants and machinery on which full capital expenditure is allowable.

Schedule - DOA

It provides for computation of depreciation admissible under income tax act for the year in respect of other category of assets- land,building,furniture and fittings, intangible assets and ships

Schedule - DEP

It curbs the summary of depreciation admissible under the income tax act in respect of all categories of assets. This does not cover the category of assets in respect of which capital expenditure is allowable.

Schedule - DCG

The schedule contains a summary of short term capital gains on sale of depreciable assets during the year as per Income tax act under various category of assets.

Schedule ESR

This schedule captures the details of expenditure u/s 35, 35CCC, 35CCD

Schedule CG: Capital Gains

Capital gains arising from different types of capital assets have been segregated.

Part - A : Provides for computation of short term capital gains from different types of capital assets.
Part - B : Provides for computation of long term capital gains from different types of capital assets.
Part - C : Computes the total of short term and long term capital gains. Deductions can be claimed in respect of capital gains subject to fulfillment of prescribed conditions. 
Part - D: In case any deduction is claimed against any type of capital asset, the details have to be furnished in the Schedule- D.
Part - E: Provides for intra head set off of current year capital losses with capital gains. The schedule separates different categories of capital gains ( long term and short terms) into different baskets according to the rate at which they are chargeable to tax.
Part - F:  Necessitates reporting of quarter wise details of accrual or receipt of incomes under the head capital gains.
Schedule OS-Income from other sources

The gross amount of income from the other sources need to be entered which are chargeable to tax at normal applicable rates.

  • Enter the gross amount of income from other sources chargeable to tax at special rates such as winning from lotteries, income chargeable u/s 115BBE etc.
  • Claim of deduction u/s 57 relating to income under head 'income from other sources’ chargeable at normal applicable rates.
  • Any amount not deductible while computing income chargeable under head ‘income from other sources’ by virtue of sec -58.
  • Any profit which is chargeable to tax under the head income from other sources by virtue of sec 59.
  • Enter the net amount of income chargeable to other sources of income which is chargeable to normal rates of tax.
  • Enter the aggregate amount of income chargeable under the head ‘income from other sources’ excluding the income from activity of owning and maintaining race horses.
  • Report the net income from owning and maintaining race horses.
  • Compute in this column the aggregate income chargeable under the head ‘income from other sources’
  • Period wise details of accrual or receipt of income need to be reported under the head ‘income from other sources’ in the table.
Schedule CYLA- Income after set- off of current year losses

If the net result of computation under the head ‘income from house property’, ‘profits and gains from business and profession’ and ‘income from other sources’ is a loss figure, fill up the figure of loss details.
The positive income computed under various heads of income for the current year should be mentioned in column (1) in the relevant row of the respective head.

Schedule - BFLA - Income after set off of Brought forward losses of earlier years

The positive income remaining after set off of current year losses as per schedule CYLA should be mentioned in column(1).
In column(2) amount of brought forward losses from earlier years which can be set off against various heads of income
In column(5) mention the net positive income of the current year remaining after set off of brought forward losses under various heads of income in the relevant rows.

Schedule-CFL-Losses to be carried forward to future years

Enter the assessment year wise details of losses brought forward from earlier years in the first eight rows under various heads of income at respective columns.

Schedule - UD - Unabsorbed depreciation and allowance u/s 35(4)

In this schedule, amount of brought forward unabsorbed depreciation and allowance u/s 35(4) for each assessment year, amount of depreciation and allowance u/s 35(4) set off against the current year’s income and the balance unabsorbed depreciation and allowance u/s 35(4) to be carried forward to next assessment year.

Schedule - ICDS- Effects of income computation Disclosure standards on profit

Deviation from each of the ICDS that has an effect on profit is to be filled in column (iii) of the said schedule.

Schedule - 10AA- Deduction in respect of units located in Special Economic Zone

One needs to enter the details of each undertaking separately under this section, if there are more than one undertaking entitled.

Schedule 80 G- Details of donation entitled for deduction u/s 80 G

Furnish the following details of donations paid to charitable institutions -

  • Name and address of donee
  • PAN of donee
  • Total amount of donation - give break up needs to be mentioned of the amount paid in cash/other mode
  • Amount which is eligible for deduction.
Schedule - RA - Details of donation to research association etc.

Furnish the following details of donation given to research association

  • Name and address of donee
  • PAN of donee
  • Total amount of donation - given break up of amount in cash/ other mode
  • Eligible amount of donation
Schedule -80 IA , Schedule 80 IB , Schedule 80 IC and Schedule 80 IE

If under this section, there are more than one undertaking entitled for deduction. Please enter the details of the deduction in the relevant schedule for each undertaking separately.

Schedule VI A - Deductions under chapter VI-A

Provide the details of deductions claimed under various provisions of chapter VI-A during the year.

  • Table 1. Deductions in respect of certain payment:
    - 80c
    - 80CCC
    - 80CCD(1)
    - 80CCD(1B)
    - 80CCD(2)
    - 80CCG
    - 80D
    - 80DD
    - 80DDB
    - 80E
    - 80EE
    - 80G
    - 80GG
    - 80GGC
  • Table 2. Deduction in respect of certain incomes:
    - 80-IA
    - 80-IAB
    - 80-IB
    - 80-IBA
    - 80-IC/80-IE
    - 80JJA
    - 80JJAA
    - 80QQB
    - 80RRB
  • Table 3. Deduction in respect of other incomes/other deduction:
    - 80TTA
    - 80TTB
    - 80U
Schedule AMT: Details of Alternate Minimum Tax payable u/s 115 JC

Furnish the details of alternate minimum tax payable u/s 115JC. The computation of adjusted total income and alternate minimum tax payable under this schedule should be based on an audit report in Form 29C.

Schedule AMTC: Computation of Tax Credit u/s 115JD

Credit of AMT payable in A.Y. 2013-14 and subsequent assessment years, in excess of normal tax liability is permitted to be set off against the normal tax liability of the current assessment year.

Schedule SPI: Income of specified persons, includable in income of the assessee as per sec 64

In this schedule, furnish the details of income of specified persons which is required to be clubbed with your income as per provisions of income tax act.

Schedule SI: Details of Income chargeable to tax at special rates

Report the income which is chargeable to tax at special rates of tax and the tax chargeable to tax at special rates.

Schedule IF: Information regarding partnership firm in which you are partner

The schedule has to be filled for each firm in which you are partner

Schedule - EI - Details of exempt income

In this Schedule, the details of those incomes need to be furnished which are claimed as exempt from tax such as interest, dividend, agricultural income, or any other exempt income, income not chargeable to tax as per DTAA and pass through income which is not chargeable to tax.

Schedule PTI - Details of Pass through income from business trust or investment fund

Report the income of pass through income received from business trust or investment fund as referred to in sec 115UA or sec- 115UB

Schedule FSI- Income from outside India and tax relief

Report the details of income which is accruing or arising from any source outside India in this schedule

Schedule TR- Summary information of tax relief claimed for taxes paid outside India

Provide the summary of tax claim received which is being claimed in India for the taxes outside India in respect of each country. This schedule captures a summary of detailed information furnished in schedule FSI.

Schedule FA- Information of Foreign Assets and income from any source outside India

If you are a resident in India then you are required to furnish details of foreign assets etc. in this schedule. This schedule need not be filled if you are a ‘not ordinarily resident’ or a ‘non resident’.

Schedule - 5A- Details of income between spouses governed by Portuguese Civil Code

If you are governed by the system of community of property under the Portuguese Civil Code 1860,furnish the information necessary for apportionment of income between husband and wife. In this schedule.

Schedule AL- Information about the Assets and liabilities towards the end of the year

If the income exceeds Rs 50 lacs, it is mandatory to disclose the details of movable and immovable assets etc. in this schedule along with the liabilities incurred in relation to such assets.

Schedule GST- Covers the details regarding turnover/ gross receipt reported for GST

Details of all GSTIN No. registered needs to be provided and respective amounts of annual value of outward supplies should be reported against each GSTIN no.

PART B -TI- Computation of Total Income
  • Enter the net income chargeable under the head ‘salaries’
  • Enter the net income chargeable under the head ‘income from house property’.
  • Enter profits and gains from normal business, specified business, speculative business
  • Enter the amounts of short term capital gains(STCG) and long term capital gains (LTCG) for the year chargeable at different tax rates.
  • Enter the net income under the head ‘income from other sources’ which is chargeable to tax at normal rates of tax , chargeable to tax at special rates and income from activity of owning and maintaining race horses.
  • Total head wise income: Enter the aggregate of income computed under the various heads in this column.
  • Enter the aggregate of losses computed under the various heads of income to the extent allowable to be set off against the positive heads of income in the current year.
  • Enter the remaining current year income after intra head set off of current year losses.
  • Enter the aggregate amount of losses brought forward from earlier years under the heads to the extent allowable against the positive income under the various heads for the current year.
  • Gross total income: Enter the remaining current year income after allowing for adjustment of brought forward losses, unabsorbed depreciation, and unabsorbed allowances.
  • Report in this column the aggregate of income under various heads chargeable to tax at special rates and are included in gross total income
  • Report the deductions claimed under chapter VI-A of the income tax Act in this column.
  • Enter the amount of claim of deductions in respect of undertakings located in Special Economic Zone (SEZ) as per section 10AA.
  • Total income: Enter the amount of total income chargeable to tax for the previous year at this column.
  • Report in this column aggregate of income under various heads chargeable to tax at special rates and are included in total income.
  • Report in this column net agriculture income under or any other income which is required to be aggregated for the purpose of determining the applicable rate of tax.
  • Compute the aggregate in this column as total income reduced by the income chargeable at special rates and increased by the amount of net agriculture income.
  • Report in this column the aggregate of losses of current year under various heads which are permitted to be carried forward to subsequent years.
  • Report in this column adjusted total income computed u/s 115JC for the purpose of determining AMT payable for the current year.
PART B -TTI- Details of tax liability on total income
  • Enter the amount of Alternate Minimum Tax (AMT) payable on adjusted total income computed u/s 115JC.
  • Compute the tax payable on total income as per the normal provisions in this column.
  • Enter the amount of gross tax liability payable for the year which should be taken as higher the amount of gross AMT liability and gross tax payable as per the normal provisions.
  • Enter in this column AMT credit of earlier years utilised against the gross AMT payable for this year.
  • Enter the amount of net tax payable for the year after allowing credit of AMT of earlier years.
  • Enter the amount of tax relief admissible in respect of arrears or advance of salary received during the year computed as per sec 89.
  • Compute the net tax liability payable for the year after allowing the tax relief admissible.
  • Enter the amount of interest chargeable for default as per sec- 234A, 234B, 234C and enter the amount of fee payable for default in furnishing the return of income as per section 234F
  • Aggregate liability: Enter the aggregate amount of tax, interest and fee payable for the year.
  • Enter the aggregate amount of taxes for which credit is being claimed in this year.
  • Compute the net amount payable after claiming credit of taxes paid for the year.
  • If the aggregate of taxes paid during the year is higher than the aggregate amount of tax payable for the year then calculate the net amount refundable.
  • Provide the details of all accounts maintained by you at any time in India during the previous year.
  • Furnish the details of foreign accounts or foreign assets etc. in schedule FA
Item No. 15: - TRP details

If the return has been prepared by the tax return preparer, the relevant details have to be filled by him and the return has to be countersigned by him in the space provided in the said item.

Item No. 17 :- Tax payments:

PART-A: Details of payment of Advance tax and Self - assessment Tax Enter the relevant details of payment of advance tax or self- assessment tax .

PART-B : Details of tax deducted at source from salary

Enter the relevant details of taxes deducted at source form salary as appearing in Form 16 issued by the employer.

PART -C :Details of tax deducted at source (TDS) on Income

Enter relevant details of tax deducted at source on income other than salary as appearing in Form 16A, 16B, or 16C issued by the tax deductor.

PART- D: Details of Tax collected at source(TCS)

The relevant details of taxes collected at source need to be entered during the year as appearing in form 27D issued by the collector.

Verification:

Enter the name, father's name,and PAN of the person who is filing the return. The verification of the return of Income can be verified by the individual himself or by persons authorised on his behalf. In case of HUF, return of income can be verified by the Karta of HUF.


Frequently Asked Questions (FAQs)

Q - Who can file ITR 3?

Individuals and HUF having income form Business and Profession other than those covered under presumptive taxation are required to file ITR-3.


Q - What is the difference between ITR 3 and ITR 4?

Although broadly both these form refer to Individuals and HUF having income from business from business and profession but the difference lies in the following areas

ITR-3 ITR-4
For other than presumptive taxation  Those opting for presumptive taxation need to file ITR 4
Total income reported can exceed Rs 50 lakhs Total income shall not exceed Rs 50 lakhs
Can be filed by a director of a company Cannot be filed by a director

CA Abhishek Soni
CA Abhishek Soni

Abhishek Soni is a Chartered Accountant by profession & entrepreneur by passion. He is the co-founder & CEO of Tax2Win.in. Tax2win is amongst the top 25 emerging startups of Asia and authorized ERI by the Income Tax Department. In the past, he worked in EY and comes with wide industry experience from telecom, retail to manufacturing to entertainment where he has handled various national and international assignments.

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