ITR 3 – What is ITR 3 Form & How to File ITR-3?

The ITR-3 form is specifically designed for individuals and Hindu Undivided Families (HUFs) engaged in business or profession, necessitating the maintenance of comprehensive books of accounts. This category encompasses professionals such as chartered accountants, doctors, lawyers, engineers, etc., whose income is calculated based on actual profits. Moreover, individuals earning from salaried employment and additional sources like freelancing or part-time business activities can also use the ITR-3 form to file their income tax returns.

Latest Update:

The CBDT has officially released the ITR-3 for AY 2025-26, marking the start of the income tax return filing process for FY 2024-25. This form must be used to report income earned between April 1, 2024, and March 31, 2025, with some important changes. Continue reading to know the updates. 

What is the ITR-3 Form?

The ITR-3 is applicable for individual and HUF who have income from profits and gains from business or profession. One can call it a master Form, as this is the one form where an individual or HUF can report all the possible incomes.

Who can file ITR-3 Form?

• Carrying on a business or profession (both tax audit and non-audit cases)
• The return may include income from house property, salary/pension, capital gains and income from other sources.
• Remuneration received from a partnership firm

Who is not eligible to file ITR-3 Form?

• No persons other than individuals & HUF are eligible to file ITR -3 Form.
• Individuals & HUFs not having income by way of business or profession or partnership firm are not eligible to file the ITR-3 Form. 

Due date for filing the ITR-3 form

For non-audit cases, the due date to file ITR-3 is 31st July and for accounts requiring audit, the due date is 31st October. 

Major Changes in ITR-3 form for AY 2025-26

Schedule - Capital Gain Split (Before/After 23rd July 2024)

• Capital gains will now be split based on the Finance Act, 2024, changes that affect gains before and after 23rd July 2024. This will require taxpayers to categorise their gains and calculate tax accordingly.
• The change aims to streamline capital gain reporting by specifying the timeframes impacted by the Finance Act amendments, ensuring clearer tax treatment.

Capital Loss on Share Buyback (After 01.10.2024)

• As per the new provisions, capital losses on share buybacks will be allowed if the corresponding dividend income is reported under "Income from Other Sources." This change applies from 01st October 2024, adding clarity to the treatment of capital losses related to buybacks.
• Taxpayers must ensure that dividend income is reported correctly to claim the loss under capital gains.

Asset & Liability Reporting Limit Increased to Rs. 1 Crore of Total Income

• The threshold for reporting assets and liabilities in the ITR-3 form has been raised to Rs. 1 crore of total income. Taxpayers with total income exceeding Rs. 1 crore must disclose detailed asset and liability information.
• The increased reporting limit aims to bring greater transparency for higher-income individuals and streamline compliance.

Addition of Section 44BBC (Cruise Business)

• The ITR-3 form has been updated to include the presumptive taxation provisions under Section 44BBC, as introduced in the Budget 2024 for cruise business operators. This section deems 20% of passenger carriage receipts as taxable profits for non-resident cruise operators.
• Including this reference in the ITR-3 form clarifies the reporting requirements for cruise businesses, ensuring they understand the specific tax provisions applicable to their operations and comply more effectively with the new taxation structure.

Enhanced Reporting for Deductions (80C, 10(13A), etc.)

• There has been enhanced reporting for deductions such as under Section 80C, Section 10(13A) (House Rent Allowance), and others. Taxpayers claiming these deductions will need to provide more detailed information to ensure correct eligibility and avoid errors in reporting.
• This aims to reduce discrepancies and improve the accuracy of deductions claimed, enhancing overall tax compliance.

TDS Section Code Reporting in Schedule-TDS

• A new requirement has been introduced: taxpayers need to report the TDS section code in the Schedule-TDS section of the ITR-3 form. This will enable better tracking of tax deducted at source and simplify the reconciliation process for both taxpayers and tax authorities.

How to File ITR-3? – Steps to e-File Your ITR-3

ITR e-Filing – Login & Required Documents

You can file your income tax return (ITR) on the ClearTax platform. Here is a guide on filing ITR-3 if you have income from business or profession, intra-day trading or Futures and Options (F&O) trading. Before we get started, you should have the following documents at hand to pace up the process:

• PAN
• Aadhaar
• Bank account details
• Form 16 if applicable
• Investments details
• Books of accounts

Step 1: Login

Login to your ClearTax account (www.cleartax.in). You can file ITR by yourself in a few simple steps. To begin ITR filing, click on the ‘Start Filing’ link.

Step 2: Link Your PAN

Clear (previously ClearTax) allows you to access data from the income tax department and pre-fill information for preparing an income tax return. Link your PAN by entering ‘PAN Card Number’ and ‘Date of Birth’.

The linking shall complete when you do an OTP verification. You can verify OTP by selecting ‘Aadhaar registered mobile number’ or ‘IT Department registered mobile number’.

Step 3: Pre-fill Your Personal Information

To allow us to pre-fill your information from the income tax department, complete another OTP verification. This OTP verification is to capture all your personal information and income details in your income tax return with maximum security of your data.

Opting for this saves you a lot of time and hassle with manual entries. We’ve made painstaking efforts to help you file the return in under 3 minutes. So proceed to do an OTP verification.

After OTP verification, the personal information and income details will be imported from the income tax department.

On the next page, you can preview all your details pre-filled. All you have to do is ensure that they are correct.

Step 4: Edit and Review Details

Personal Information

Go to the ‘Personal Info’ tab and check the pre-filled details. If you want to add or edit any information, you can make the changes and proceed.  
 

Income Sources

Go to the ‘Income Sources’ tab. Here, your salary details are also pre-filled. Just review the details whether they are correct and edit if required. If you did not select the pre-fill option earlier, you could upload your Form 16 or 26AS PDF to fetch the salary details. Next, you can enter details of rental income or income from house property, other income, and capital gain

ClearTax has partnered with various brokerage firms to capture the capital gains from shares and mutual-fund-related transactions automatically. We support importing capital gains data directly from platforms like 5paisa and Paytm Money. 

In the capital gains section, click on the relevant platforms

You will be redirected to a new tab where you can log in to your broker’s account, and after successful login, all your capital gains details will be fetched automatically.

Profit from Business or Profession

Now, enter the business income tab. Here, you will need to click ‘Add BSPL Income

Here, fill in the Balance sheet, P&L, depreciation, ICDS and other details if they are applicable.

Once done, scroll down to fill in the income computation in Schedule BP and fill up the Schedule OI. Next, add your auditor details if tax audit is applicable to you. Then click on ‘Go to next’ to proceed to enter tax-saving details.

Under the ‘Deductions’ tab, review the investment details (say LIC, PPF, etc.) captured. If you want to add more tax-saving details, you can edit the fields and claim tax benefits here.

Watch out for the tax-saving tips that are prompted to you on the screen.  
 

Tip: Do you have kids? Claim benefits on their tuition fees under Section 80C.  
Also, interests up to Rs 10,000 earned on your savings account maintained with a bank, post office, or co-operative society can be claimed as a deduction under 80TTA.

Step 5: Enter the Tax Paid Details

If you scroll down below, you can enter taxes-paid details. Add tax payments already made if you have any non-salary income, say, interest or freelance income.

You can also add these details by uploading Form 26AS. In the case of uploading Form 26AS, only the TDS details get auto-populated and not the income, hence required to enter the income details in the respective place.

You can claim relief under Section 89 of the Income Tax Act. Also, enter the self-assessment tax paid for the relevant financial year under the tab ‘Self tax payments’.

Step 6: Schedule AL and Other Disclosures

Now, if any of the conditions mentioned in the ‘Other Disclosures’ section apply to you, fill in those relevant sections.

Say your total income after deductions exceed Rs 50 lakh, you must fill in the schedule AL. Here, fill in details of all your assets and liabilities if they were not included in the balance sheet earlier. If you are a non‐resident or ‘resident but not ordinarily resident’, only the details of assets located in India are to be mentioned.

Likewise, in the current account deposits section, you will have to add the total amount deposited if you have deposited more than ₹1 crore in FY 22-23  
 

Step 7: View Summary, Compare, and Switch Tax Regimes

On the next page, you can also view the computation of your income tax. It will compare your tax under both old and new tax regimes.

The ClearTax portal allows you to switch the tax regime at this stage. You can also view and download your tax report.  
 

Scroll down below, and you can go through all the details filled by you in each section and edit any of these items. To proceed, click on ‘File tax’.

Step 8: Self-Declaration

You will need to declare that all the information in return, including the amounts, is correct. This step ensures that you have double-checked the information for its correctness and authorised ClearTax to file ITR on your behalf. To proceed, check the box and ‘Submit Declaration’.

Step 9: Pay Taxes

You can view your tax due status in the computation. If any tax is due to be paid, you must pay the same and enter the challan details to proceed to e-file. Read this guide to know how to pay your tax dues.

If you see ‘Refund’ or ‘No Tax Due’ here, you can proceed to e-file. You will get an acknowledgement number on the next screen.

Step 10: Make Payment

You can now make the payment for submitting your return through the Clear (previously ClearTax) portal. To do the same, click on ‘Proceed to e-File’.  
 On completion, you will see a success message as shown below. 

Step 11: ITR Submitted Successfully

If the ITR is successfully submitted to the income tax department, you can see the success message below.  
 

Step 12: e-Verify

Once your return is filed, e-verify your income tax return.

Important: Uploading ITR alone does not complete the return filing process. Verification of return is important to complete the return filing process.

What is the structure of the ITR 3 Form for AY 2023-24 and AY 2024-25?

ITR-3 is divided into:

• Part A
  • Part A-GEN: General information and Nature of Business
  • Part A-BS: Balance Sheet as of March 31, 2021, of the Proprietary Business or Profession
  • Part A- Manufacturing Account: Manufacturing Account for the financial year 2020-21
  • Part A- Trading Account: Trading Account for the financial year 2020-21
  • Part A-P&L: Profit and Loss for the financial Year 2020-21
  • 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)

After this, there are the following schedules.

• 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)(b)(iii)Proviso: 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 VI-A: Statement of deductions (from total income) under Chapter VIA.
• 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 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 tax deferred on ESOP: Information of tax-deferred on ESOPS received from eligible start-ups referred to in Section 80-IAC
• 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 do I file my ITR-3 Form?

A taxpayer has to compulsorily file ITR-3 online. The ITR-3 can be filed online/electronically:

• By furnishing the return electronically under a digital signature
• By transmitting the data electronically and then submitting the verification of the return in Form ITR-V

If you submit your ITR-3 Form electronically under digital signature, the acknowledgement will be sent to your registered email id. You can also choose to download it manually from the income tax website. You are then required to sign it and send it to the Income Tax Department’s CPC office in Bangalore within 120 days of e-filing. Remember that ITR-3 is an annexure-less form i.e. you do not have to attach any documents when you send it.

How do you send your ITR-V to the CPC Office?

We have a guide to help you print and send your ITR-V to the CPC office.

How to fill out the verification document?

While filling up the data in the income tax return, a taxpayer should also fill up the verification. Please note that any person making a false statement in the return or any of the accompanying schedules shall be liable to be prosecuted under section 277 of the Income-tax Act, 1961 and on conviction be punishable under that section with rigorous imprisonment and with fine.

Business Codes for ITR Forms

*n.e.c. – not elsewhere classified

What is the structure of the ITR 3 Form for AY 2021-22 and AY 2022-23?

ITR-3 is divided into:

• Part A
  • Part A-GEN: General information and Nature of Business
  • Part A-BS: Balance Sheet as of March 31, 2021, of the Proprietary Business or Profession
  • Part A- Manufacturing Account: Manufacturing Account for the financial year 2020-21
  • Part A- Trading Account: Trading Account for the financial year 2020-21
  • Part A-P&L: Profit and Loss for the financial Year 2020-21
  • 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)

After this, there are the following schedules.

• 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)(b)(iii)Proviso: 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 VI-A: Statement of deductions (from total income) under Chapter VIA.
• 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 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 tax deferred on ESOP: Information of tax-deferred on ESOPS received from eligible start-ups referred to in Section 80-IAC
• 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

Major Changes in ITR-3 form for AY 2023-24 and AY 2024-25

Below changes are incorporated in the ITR-3 form of the FY 2022-23 and applicable for FY 2023-24 as well:

• A new schedule VDA has been added to separately report your income from crypto/ other VDAs. If you treat income from VDAs as capital gains, a quarterly breakup will need to be given under the Capital Gains Schedule. In the new ITR-3 every VDA transaction will have to be reported along with the dates of sale and purchase.
• A few questions have been added in the new ITR 3 form to determine if you had opted out of the New Tax Regime in previous years.
• Foreign institutional investors (FII/FPI) must provide their SEBI registration number as an additional disclosure measure. 
• There has been a small change in balance sheet reporting. According to the new ITR-3 form, advances received from individuals specified in Sec 40A(2)(b) of the Income Tax Act and others must be reported under the ‘Advances’ heading in Source of Funds.
• Turnover and income from intraday trading must be reported under the newly introduced section ‘Trading Account’.

Major Changes in ITR 3 form for AY 2021-22

Below changes are incorporated in the ITR-3 form of the FY 2020-21:

• Since 1st April 2020, the recipient of the dividend will be liable to pay tax. Relevant sections such as section 10(34), 10(35), 115-O, etc., have been amended in the Act. Accordingly, suitable changes are incorporated in the ITR form.
• The taxpayers are given relief from payment of advance tax liability if the dividend is not received. Hence, the ITR form allows the taxpayers to enter quarterly details of dividend income so that interest under section 234C can be computed for default in payment of advance tax.
• As per amendment by the Finance Bill 2021 in section 44AB, the threshold limit of tax audit is increased to Rs 10 crore from Rs 5 crore if the cash payments are less than 5% of the total amount of sales or turnover. The corresponding amendment is incorporated in the ITR form.
• The Schedule DI inserted for the AY 2020-21 to claim deductions for investments or expenditures made in the extended period (1st April 2020 to 30th June 2020) is removed in the ITR form of AY 2021-22.
• Schedule 112A and Schedule 115AD(1)(b)(iii) proviso are modified with an additional column to mention the details of nature of securities transferred for the resultant capital gains tax under section 112A or section 115AD(1)(b)(iii) of the Income Tax Act. The schedules are also modified to enable the taxpayer to give information for the sale price, fair market value and the cost of acquisition of the security.
• Part-A General Information is modified where the taxpayer is given to choose the alternative option of new tax regime under section 115BAC.
• The taxpayer having income from business or profession and opting for an alternative tax regime is required to mention the date of filing Form no.10-IE and its acknowledgement number.

What is the structure of the ITR-3 Form for AY 2020-21 and AY 2019-20 ?

ITR-3 is divided into:

• Part A
  • 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 2020-21
  • Part A- Trading Account: Trading Account for the financial year 2020-21
  • Part A-P&L: Profit and Loss for the financial Year 2020-21
  • 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)

After this, there are the following schedules.

• 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)(b)(iii)Proviso: 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 VI-A: Statement of deductions (from total income) under Chapter VIA.
• 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 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 lakh)
• 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

Note:

• The due date for filing ITR-3 in case of a taxpayer subject to tax audit has been extended to 15th February 2022 from 31st October 2021 for the AY 2021-22 (FY 2020-21). The due date for furnishing tax audit report is extended to 15th January 2022.
• The threshold limit of Rs 1 crore for a tax audit is proposed to be increased to Rs 5 crore with effect from AY 2020-21 (FY 2019-20) if the taxpayer’s cash receipts are limited to 5% of the gross receipts or turnover, and if the taxpayer’s cash payments are limited to 5% of the aggregate payments.

Major Changes in ITR-3 form for AY 2020-21

• The taxpayer should disclose   
  
  • the amount of cash deposits above Rs 1 crore in the current accounts with a bank,
  • expenditure incurred above Rs 2 lakh on foreign travel   
     
  • expenditure incurred above Rs 1 lakh on electricity.
• In case an individual is a director in a company or holds unlisted equity investments, the ‘type of company’ should also be disclosed.
• In case of short-term or long term capital gains from sale of land or building or both, the details of the buyer(s) i.e. name, PAN or Aadhaar, percentage share of ownership and address have to be given.
• A separate schedule 112A for the calculation of the long-term capital gains on the sale of equity shares or units of a business trust which are liable to STT.
• Under ‘income from other sources’, a taxpayer should provide the details of ‘any other income’.
• The details of the deductions against ‘income from other sources’ should be provided.
• The ‘Schedule VI-A’ for tax deductions is amended to include deduction under section 80EEA and section 80EEB.
• In the case of a business trust or investment fund, the details of ‘capital gains’ income and ‘dividend’ income should be provided.
• The details of tax on secondary adjustments to transfer price under section 92CE(2A).
• The details of tax deduction claims for investments or payments or expenditure made between 1 April 2020 until 30 June 2020.
• While providing the details of bank accounts, if a taxpayer selects multiple bank accounts for credit of refund, the income tax department may choose any account for processing the refund.

Major Changes in ITR-3 form for AY 2019-20

• The field for residential status has been categorised into “Residential status in India (for Individuals)” and “Residential status in India (for HUF)”.In case of “Residential status in India (for Individuals)”, the 3 sub-categories – “Resident”, “Resident but not Ordinarily Resident’ and “Non-resident”, have been mentioned requiring the individual to tick the specific category to which they belong. Taxpayers have to mention the number of days of residency in India.Further, in the case of non-resident, an individual is also required to specify the jurisdiction(s) of residence during the previous year providing the Taxpayer Identification Number(s) of the relevant jurisdictions. Also, in case the individual is a Citizen of India or a Person of Indian Origin (PIO), the duration of stay in India during the previous year (in days) and the duration of stay in India during the 4 preceding years (in days).
• In a case where the ITR is filed by a representative assessee, additional information about the capacity of the representative assessee (by way of choice in a drop down provided) has to be given.
• An individual taxpayer has to give information about the Directorship held in any company during the previous year, also mentioning whether the shares are listed or unlisted.
• An individual taxpayer has to give information about the investment in unlisted equity shares and the movement in such investment throughout the year.
• An individual taxpayer who is a partner in a Firm has to disclose details of name and PAN of the Partnership firm.
• Partners of partnership firms as against ITR 2 will have to file their returns in ITR 3.
• Details of computation of presumptive income under section 44AD, 44ADA and 44AE.
• Under Part A-OI, disclose amount of expenditure disallowed u/s 14A.
• The break-up of all exempt allowances and deductions under Schedule S – Details of income from salary.
• In Schedule HP, under details of income from house property, the PAN of the tenant in case TDS credit is claimed.
• In Schedule OS, under any other income chargeable at special rate, taxpayer has to provide the details for each income mentioned therein e.g., interest income, income from units etc.Also, Information has to be provided about accrual/ receipt of income from other sources e.g., winnings from lotteries, crossword puzzles, betting etc for the purpose of calculation of interest under section 234C.
• In Schedule 80G, bifurcation of donation qualifying for deduction under section 80G into cash and other mode. Similar disclosure to be made under Schedule RA for donations made to research associations under section 35.
• In Schedule VI-A, introduction of section 80TTB deduction for senior citizen.
• In Schedule FA, below details, if held during the year:Foreign Depository Accounts (including beneficial interest) Foreign Custodial Accounts (including beneficial interest) Foreign Equity and Debt Interest (including beneficial interest) Foreign cash value insurance contract or Annuity Contract held (including beneficial interest)
• In Schedule GST, Information regarding turnover / Gross receipt reported for GST

ITR 3 for AY 2018-19

ITR-3 is divided into:

• Part A
  • Part A-GEN: General information and Nature of Business
  • Part A-BS: Balance Sheet as of March 31, 2017, of the Proprietary Business or Profession
  • Part A-P&L: Profit and Loss for the Financial Year 2016-17
  • 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)
• Part B: Outline of the total income and tax computation in respect of income chargeable total tax.
• Verification
• Tax Payments: Details of advance tax, TDS, self-assessment tax.

After this, there are the following schedules.

• 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-OS: Computation of income under the head Income from other sources.
• 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- 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 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 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 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 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.
• 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 lakh)

What is the structure of the ITR-3 Form for AY 2018-19?

Quoting of Aadhaar Number

It is mandatory to mention the Aadhaar number in the return of income or Aadhaar Enrolment ID if applied for it.

Declaration of the value of assets and liabilities by Individuals/HUF earning above Rs 50 lakh in Schedule ‘AL’

Taxpayers are required to disclose the value of assets and liabilities if their total income exceeds Rs 50 lakh and mention the cost of immovable property with details of address, jewellery, bullion, vehicles with details of movable assets, shares, bank and cash balance, etc.

Disclosure of unexplained income and Dividend Income

New fields have been inserted in schedule ‘OS’ to declare unexplained credit or investment and dividends received from domestic companies above Rs 10 lakh. Such persons cannot opt for ITR 1 Sahaj.

Disclosure of GST related details

In the Profit and Loss schedule, the GST related details have to be disclosed.

Limitation on claim for depreciation

A maximum limitation of 40% is placed on depreciation in all depreciation-related Schedules.

Partners filing of income tax return

Partners of partnership firms have to file returns in ITR-3 as against ITR-2

Option to select section 115H

In the general information tab, an option to select section 115H (who is a non-resident Indian in any previous year, becomes assessable as a resident in India in respect of the total income of any subsequent year) has been added.

Major Changes in ITR 3 form for AY 2018-19

• In the general information tab, an option to select section 115H (who is a non-resident Indian in any previous year, becomes assessable as a resident in India in respect of the total income of any subsequent year) has been added.
• In the Profit and Loss schedule, the GST-related details have been added Limitation of maximum 40% depreciation in all depreciation-related Schedules
• Partners of partnership firms as against ITR-2 will have to file their returns in ITR-3.

Also read about:  
1. Which ITR Should I File  
2. How to file ITR Online  
3. How to file ITR-1 (SAHAJ) Online  
3. What is ITR 2 Form & How to File ITR-2   
4. Who and How to File ITR 4  
5. What is ITR-5 Form, Structure & How to File ITR 5  
6. ITR 6  
7. How to File and Download ITR-7 Form  
8. ITR 3 vs ITR 4  
9. ITR 1 vs ITR 4  
10. How to File ITR-2 for Income from Capital Gains 
11. Long-Term Capital Gains 
12. Short-Term Capital Gains