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ITR-3 Form: How to File ITR-3 Online

Updated on: 16 Jan, 2024 05:49 PM

The income-tax return filing season is live for FY 2022-23 (AY 2023-24), and many taxpayers are now gearing up to file their tax returns. ITR forms are one of the key things to take care of while filing ITR and it depends on the income earned and the source of income.

Income tax return form (ITR-3) is meant for individuals and HUFs with income from the head Profits or gains from business and profession.It is one of the various income tax return forms prescribed by the Income Tax Department of India for different types of taxpayers.

What is the ITR-3 Form?

ITR-3 is an income tax return form used in India for individuals and Hindu Undivided Families (HUFs) who have income from the following sources:

  • Income from business or profession
  • Income from salary or pension
  • Income from house property
  • Income from capital gains
  • Income from other sources

ITR-3 is applicable to taxpayers who have income from any of the above-mentioned sources, except for individuals who have income from profits and gains of business or profession under the presumptive taxation scheme, which is covered under ITR-4.

The ITR-3 form is more comprehensive and allows taxpayers to provide detailed information about their income and deductions across various sources. It consists of different sections where taxpayers need to provide relevant details, such as personal information, computation of total income, details of income from different sources, deductions, taxes paid, and verification.


Who can file ITR-3?

ITR-3 can be filed by the assesses falling in the following categories:-

  • Income from a profession or business carried under a proprietorship firm, wherein the taxpayer is a proprietor (both audit and non-audit cases)
  • Income from more than one house property
  • Rewards earned by winning a lottery, horse racing, and other activities falling under ‘Income from Other Sources
  • Income assets by way of assets in a country outside India
  • Income generated from short or long-term capital gains

Who are not eligible to file ITR-3?

  • Individuals who file Form ITR‐1 (Sahaj), ITR‐2 or ITR‐4 (Sugam), are not eligible to file ITR-3.
  • Income earned from foreign assets.

What is the structure of the ITR-3 form?

PART A: General information

Personal information: It contains information like First name, Middle name, Last name, PAN, Address, Date of birth/formation, Aadhaar number, Mobile number, Email id, Status (Individual/HUF), etc.
Filing Status: Mention:
  • Filing u/s
  • If revised/defective/modified then enter Receipt no. and Date of filing the 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.
  • Details for opting section 115BAC and its relevant details
  • Income details if return filing under conditions mentioned in the seventh proviso.
  • Residential Status in India of individuals
  • Do you want the benefit to be claimed u/s 115H
  • Are you governed by the civil code of Portuguese as per section 5A.
  • Whether a representative assessee filed this return.
  • Whether you held the position of a director in a company at any time during the previous year?
  • Whether you held unlisted equity shares at any time during the previous year?
  • In the case of a non-resident whether you have a Permanent Establishment(PE) in India?
  • Whether the assessee is located in an international financial center (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 another 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 the 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, 2023 in the given format. In case the regular books of accounts are not maintained, then fill up the summary details sought in part 6. And leave out other parts.
Manufacturing Account In this part details of the manufacturing account for the financial year 2022-23 need to be filled. In case you are not required to maintain the books of accounts then fill up items no.61 or 62 or 63 64 and 65 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 2022-23 in case the books of accounts are not required to maintain, then fill up the details in items 61,62,63 64, and 65 of parts -A of P&L.
P&L Account: In this part fill in the details of the profit and loss account for FY 2022-23, in case books of accounts are not required to be maintained, then fill up the items 61,62,63, 64, and 65 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 regarding 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 the 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 realized
    3. Tax paid to local authorities
    4. Annual value
    5. The annual value of property owned
    6. 30% of the annual value
    7. Interest payable on borrowed capital
    8. Arrears/unrealized 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.
      Same details for property 2 if applicable

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 the 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 income categories are added back, along with book depreciation and amortization. The depreciation as per the income tax act is permissible.
  • Items NO. 14 to 19 list out various disallowances of expenses debited to the profit and loss account whereas items no. 20 to 25 provides for the 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.34 . The profits and gains from the special provisions are computed separately under item no.35 . The aggregate of both items, no. 34 and 35 are aggregated at item no.36 .
  • 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. 37
  • 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- headset off of normal business losses with income from specified business and speculative business during the current year. Losses from speculative and specified business, if any, cannot be set off from normal business income.

Schedule - DPM (Depreciation on Plant & Machinery)

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

Schedule - DOA (Depreciation on other assets)

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

Schedule - DEP (Summary of depreciation on assets)

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 (Deemed Capital Gains on sale of depreciable assets)

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

Schedule ESR (Expenditure on Scientific Research etc. )

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 112A - Income from sale of equity shares/equity oriented mutual funds or unit of business trust on which STT is paid u/s 112A.
Schedule 115AD- For Non residents, Income from sale of equity shares/equity oriented mutual funds or unit of business trust on which STT is paid u/s 112A.
Schedule VDA - Income from transfer of virtual digital assets
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 income from other sources chargeable to tax at special rates such as winning from lotteries, income chargeable u/s 115BBE, etc.
  • The claim of deduction u/s 57 relating to income under head 'income from other sources’ is chargeable at normal applicable rates.
  • Any amount not deductible while computing income is chargeable under head's income from other sources under sec -58.
  • Any profit charged 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 tax rates.
  • Enter the aggregate amount of income chargeable under the head ‘income from other sources’ excluding the income from the 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 can be set off against various heads of income

In column(5) mention the net positive income of the current year remaining after the 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 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, the 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 - 80GGA - Details of donations for scientific research or rural development (applicable in the case of a partner of firm deriving only profit from the firm)

  • 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 the donation given to the 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 deduction details 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)
    - 80D
    - 80DD
    - 80DDB
    - 80E
    - 80EE
    - 80G
    - 80GG
    - 80GGA
    - 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 the 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 the 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 the partnership firm in which you are a partner

The schedule has to be filled for each firm in which you are a 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- TPSA Details of Tax on secondary adjustments as per section 92CE(2A)

Report the income on Tax on secondary adjustments as per section 92CE(2A) as per the schedule provided in e-filing utility

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 ‘nonresident’.

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

If the system of community of property governs you 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 the annual value of outward supplies should be reported against each GSTIN no.

Schedule: Tax-deferred on ESOP

Information related to Tax-deferred - relatable to income on perquisites referred in section 17(2)(vi) received from the employer, being an eligible start-up referred to in section 80-IAC

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, and 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's income from other sources, which is chargeable to tax at normal rates of tax, chargeable to tax at special rates, and income from the 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 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's 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 included in total gross income
  • Report the deductions claimed under chapter VI-A of the income tax Act in this column.
  • Enter the amount of claim of deductions for undertakings located in the 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.
  • A report in this column aggregate of income under various heads chargeable to tax at special rates and are included in total income.
  • A report in this column net agriculture income or any other income that is required to be aggregated to determine 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 the current year under various heads which are permitted to be carried forward to subsequent years.
  • A 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 per this column's normal provisions.
  • Enter the amount of gross tax liability payable for the year, which should be taken as higher than the amount of gross AMT liability and gross tax payable as per the normal provisions.
  • Enter in this column the AMT credit of earlier years utilized 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 tax return preparer has prepared the return, 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 from 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 return of Income can be verified by the individual himself or by persons authorized on his behalf. In the case of HUF, the Karta of HUF can verify the return of income.


How to file ITR-3?

The ITR-3 filing can be done via two modes:-

  • Offline filing: In this method, you can fill out the ITR-3 form in a paper format or through a bar-coded return. The filled-in form needs to be physically submitted to the designated income tax office within the specified timelines. It's crucial to ensure that the form is accurately filled, signed, and all the necessary supporting documents are attached.
  • Online filing:
    • By using a digital signature while submitting a return electronically.
    • By electronically transmitting the data in ITR-3 form with an electronic verification number.
    • By sending the information in the ITR-3 form electronically and then mailing the return verification in the ITR-V form to the income tax office.

Frequently Asked Questions

Q- Who can file ITR 3?

Individuals and HUFs having income from businesses and professions 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 forms refer to Individuals and HUFs having income from business and profession, 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.