ITR 3 Form

What is the ITR 3 form?

To begin with, the ITR 3 form is for individuals and HUFs to file their income tax returns. The form necessitates these two categories of people to disclose their sources of profits and income from any business they run or profession. Also called the master Form, ITR 3 has multiple tabs to report different sources of income like salary, capital gains, etc. ¹

Understanding the eligibility for ITR 3 form

In a nutshell, you must have heard that ITR 3 is for individuals and Hindu Undivided Families (HUFs). Still, it is important to understand the eligibility criteria for filling out the ITR 3 form.

Here’s a detailed list of eligibility criteria that you must meet to fill out the ITR 3 form:

1. Individuals or Hindu Undivided Families (HUFs) whose income source comes from any business or profession. Remember that this includes both tax audit and non-tax audit cases. ¹
2. Individuals or Hindu Undivided Families whose income source comes from salary, pension, house property, capital gains or any other such sources. ¹
3. Individuals or Hindu Undivided Families whose income source comes from remuneration from a partnership firm.¹

Now that you have understood the eligibility criteria for filing the ITR 3 form, take a quick look at the list of people who are not eligible to fill the ITR 3 form:¹

1. Any person other than individuals or Hindu Undivided Families.
2. Individuals or Hindu Undivided Families whose income source does not come from a profession, business or partnership.

All you need to know about the ITR 3 form structure

Before we get into the details of the ITR 3 form filing process.. Here’s all you need to know about the ITR 3 form structure:¹

The ITR 3 form is divided into different parts and schedules.¹

1. Part A

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   • Part A-GEN:

     Deals with general information about the business

   • Part A-BS:

     Deals with the balance sheet of the profession or business as of 31st March of each financial year.

   • Part A: Manufacturing account:

     Deals with the manufacturing account of the concerned financial year.

   • Part A: Trading account:

     Deals with the trading account of the concerned financial year

   • Part A-OI:

     Deals with other information and optional information

   • Part A-P&L:

     Deals with the profit and loss of the concerned financial year.

   • Part A-QD:

     Deals with quantitative details.

2. Schedules

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   Some of them include:

   • Schedule HP:

     Deals with income computation from house property.

   • Schedule DPM:

     Deals with depreciation on any plant or machinery’s computation under the Income Tax Act.

   • Schedule S:

     Deals with salary computation.

   • Schedule DEP:

     Deals with the summary of depreciation on all forms of assets as defined under the Income Tax Act.

   • Schedule CG:

     Deals with income computation from capital gains.

   • Schedule SPI:

     Deals with income coming from children, spouse or any other person mentioned as an assessee under schedules BP, HP, OS and CG.

Note: Apart from these, there are multiple schedules dealing with tax deductions that you can claim as per the Income Tax Act. For instance, Schedule 10AA talks about the computation of deductions under section 10AA of the IT Act 1961.¹

Filing the ITR 3 form: A detailed guide

Know that every taxpayer who meets the above-mentioned eligibility criteria has to file for income tax returns through the ITR 3 form.

The ITR 3 form can filled out either:¹

1. By furnishing relevant information electronically under a digital signature.
   Note: If you choose this method, you will receive an acknowledgement slip on the registered email ID or you can also download the acknowledgement slip from the income tax website. Once you have the slip, you have to sign it manually and send it to the Income Tax Department office within 120 days of e-filing.
2. Or by furnishing relevant information electronically and then performing the verification through ITR-V Form.

Here’s how you can file the ITR 3 form online:

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1. Visit the official website of income tax e-filing and log into your account using your PAN ID.
2. Locate and click on the “E-filing” tab from where you have to select the “income tax returns” and then “file income tax return” option.
3. In the next step, you have to choose the assessment year.
4. Once you have selected the assessment year, you have to select the status as per your eligibility criteria, which includes either individuals or HUF.
5. Now you have to select ITR type as ITR 3 form.
6. Know that when you are filing an income tax return online, you just have to validate the pre-filled information.
7. Once you have validated the pre-filled information, you have to disclose all the relevant income details.
8. Crosscheck all details and submit the form.

Conclusion

Filing income tax returns is mandatory for every individual and Hindu undivided family (HUFs) who are taxpayers. To file your income tax returns, you have to fill out the ITR 3 form with relevant information about your source of income and tax deductions as per the Income Tax Act, of 1961.

FAQs

1. How many types of ITR forms are there?

   There are seven types of ITR forms notified by the central board of indirect taxes. This includes ITR 1 to ITR 7 . ³

2. Who has to file the ITR 3 form?

   Any individual or Hindu Undivided Family who is a taxpayer and meets the specific eligibility criteria has to file the ITR 3 form. ³