ITR-3 Form

This page contains information on filing ITR-3 for FY 2017-18 (AY 2018-19) and FY 2016-17 (AY 2017-18)

1. 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. The persons having income from following sources are eligible to file ITR 3 :

a. Carrying on a business or profession

b. The return may include income from House property, Salary/Pension and Income from other sources

2. What is the structure of the ITR-3 Form 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, 2018, of the Proprietary Business or Profession
  • Part A-P&L: Profit and Loss for the Financial Year 2017-18
  • 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 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 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 lakhs

3. How do I file my ITR-3 Form?

You can submit your ITR-3 Form either online or offline. Only following person can file the return offline

1. Individuals who are of the age of 80 years or more
2. Individuals having income less than Rs 5 lakhs and who do not have to claim a refund in the income tax return.

Offline:

• By furnishing a return in a physical paper form
• By furnishing a bar-coded return

The Income Tax Department will issue you an acknowledgement at the time of submission of your physical paper return.

Online/Electronically:

• By furnishing the return electronically under digital signature
• By transmitting the data electronically and then submitting the verification of the return in Return 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.

 

4. Major Changes in ITR form 3 for AY 2018-19

1. 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.
2. In the Profit and Loss schedule, the GST related details have been added
3. Limitation of maximum 40% depreciation in all depreciation related Schedules
4. Partners of partnership firms as against ITR 2 will have to file their returns in ITR 3

Click here to download ITR form for AY 2018-19

5. ITR 3 for AY 2017-18

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

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-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- 10A: Computation of deduction under section 10A.
• Schedule- 10AA: Computation of deduction under section 10AA.
• Schedule- 10B: Computation of deduction under section 10B.
• Schedule- 10BA: Computation of deduction under section 10BA.
• 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 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 IT: Statement of payment of advance-tax and tax on self-assessment.
• Schedule TDS1: Statement of tax deducted at source on salary.
• Schedule TDS2: Statement of tax deducted at source on income other than salary.
• Schedule-TCS: Statement of tax collected at source.
• Schedule TR: Statement of tax relief claimed under section 90 or section 90A or section 91.
• Schedule FA: Statement of Foreign Assets.
• Schedule AL: Asset and Liability at the end of the year(applicable where the total income exceeds Rs 50 lakhs)

6. What is the structure of the ITR-3 Form for AY 2017-18?

1.Quoting of Aadhaar Number

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

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

During 2016, the taxpayers were required to declare the value of assets and liabilities if their total income exceeds Rs. 50 lakhs and mention the cost of immovable property, jewellery, bullion, vehicles, shares, bank and cash balance, etc. But Now taxpayers are also required to disclose the address of the immovable property and description of movable assets in new ITR Forms

3. Disclosure of Cash deposits during Demonetisation

A new column has been introduced in all ITR Forms to report on cash deposited by taxpayers in their bank accounts during the demonetization period, i.e., from November 9, 2016, to December 30, 2016. However, the taxpayer is required to fill up this column only if they have deposited Rs 2 lakh or more during the demonetization period.

4. Disclosure of unexplained income and Dividend Income

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

5. Registration number of Chartered Accountant Firm

Now taxpayers are required to mention registration number of the firm of Chartered Accountant which has done the audit in ITR forms.   As far as AY 2017-18 is concerned, the ITR 3 of AY 2016-17 has been discontinued and the ITR 4 of AY 2016-17 has been renumbered as ITR 3.

7. Major Changes in ITR form 3 for AY 2017-18

This Income Tax Return is meant for individuals and HUFs having income from a proprietary business or profession.

8. What is the ITR-3 Form For AY 2016-17?

Income Tax Return is prepared on ITR-3 when:

• an individual or a HUF is a partner in a firm AND
• where income chargeable to income-tax under the head “Profits or gains of business or profession” does not include any income except the income by way of any interest, salary, bonus, commission or remuneration, due to, or received by him from such firm.

In case a partner in the firm does not have any income from the firm by way of interest, salary, etc. and has only exempt income by way of share in the profit of the firm, the assessee shall use this form only; not Form ITR-2. Click here to download the latest ITR-3 form from the Income Tax Department. Do note that the final form for AY 2015-16 has not yet been released by the I-T department.

9. Who can file their income tax return on ITR-3 for AY 2016-17?

This Return Form should not be used by an individual whose total income for the AY 2015-16 includes Income from Business or Profession under any proprietorship.   Not sure which IR form you need to use? Read our guide for help.   ClearTax automatically selects the right ITR Form for you Not sure what ITR form to pick? Our software automatically picks it when you e-file.

10. Who cannot file their income tax return on ITR-3?

The form is divided into 2 parts and 23 schedules

• Part A – General information
• Part B – Outline of the total income and tax computation with respect to income chargeable to tax.

The 23 schedules are:

• Schedule-S: Computation of income under the head Salaries.
• Schedule-HP: Computation of income under the head Income from House Property
• Schedule-IF: Information regarding partnership firms in which assessee is a partner
• Schedule-BP: Computation of income under the head “profit and gains from business or profession” (income by way of salary, interest etc. from firms in which assessee is a partner)
• 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-VIA: Statement of deductions (from total income) under Chapter VIA
• Schedule 80G: Statement of donations entitled for deduction under section 80G
• 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-EI: Statement of Income not included in total income (exempt incomes)
• Schedule-IT: Statement of payment of advance-tax and tax on self-assessment
• Schedule-TDS1: Statement of tax deducted at source on salary
• Schedule-TDS2: Statement of tax deducted at source on income other than salary
• Schedule TCS: Statement of tax collected at source
• Schedule-FSI: Statement of income accruing or arising outside India
• Schedule- TR: Statement of tax relief claimed under section 90 or section 90A or section 91
• Schedule- FA: Statement of your Foreign Assets
• Schedule-5A: Statement of apportionment of income between spouses governed by Portuguese Civil Code
• Schedule-AL: Statement of your Asset and Liability at the end of the year. It is mandatory if your total income exceeds Rs.25 lakhs.

11. What is the structure of the ITR-3 Form?

Instructions for filling out ITR-3

• If any schedule is not applicable score across as “—NA—“.
• If any item is inapplicable, write “NA” against that item.
• Write “Nil” to denote nil figures.
• Except as provided in the form, for a negative figure/ figure of loss, write “-” before such figure.
• All figures should be rounded off to the nearest one rupee. However, the figures for total income/ loss and tax payable be finally rounded off to the nearest multiple of ten rupees.

The sequence for filling out parts and schedules The Income Tax Department advises assesses to follow the sequence mentioned below while filling out the income tax return.

• Part A- General on page 1
• Schedules
• Part B-TI and Part B-TTI
• Verification

You don’t even have to read this guide

The ClearTax software automatically selects your ITR form.   E-file without worries.

12. How do I fill out the ITR-3 Form?

This return form can be filed with the Income Tax Department in the following ways:

Offline	Online
By furnishing the return in a paper form	By furnishing the return electronically under digital signature
By furnishing a bar-coded return	By transmitting the data in the return electronically and thereafter submitting the verification of the return in Return Form ITR-V

When the return is filed online, the assessee should print out two copies of ITR-V Form. One copy of ITR-V, duly signed by the assessee, has to be sent by ordinary post to Post Bag No. 1, Electronic City Office, Bengaluru–560100 (Karnataka). The other copy may be retained by the assessee for his record.   Note that when the return filed on paper, the acknowledgement slip attached with the return form should be duly filled.   When are you required to file electronically?

• A resident assessee having any assets (including financial interest in any entity) located outside India or signing authority in any account located outside India, shall fill out schedule FA and furnish the return electronically.
• From AY 2013-14 onwards, assessees having a total income of more than 5 lakh rupees are required to furnish the return electronically.
• Assesses claiming relief under section 90, 90A or 91 to whom Schedule FSI and Schedule TR to apply.

No annexures required   No documents (including TDS certificate) are needed to be attached with this return form.

13. How to fill out the verification document?

In case the return is to be furnished in a paper format or electronically under digital signature or in a bar-coded return format, please fill up the required information in the Verification Form. Please ensure that the verification has been signed before furnishing the return. Write the designation of the person signing the return. If the return is filed electronically, please fill out ITR-V.   Please note that any person making a false statement in the return or in 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.