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

Updated on: Sep 25th, 2023

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73 min read

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This page contains information on filing ITR-3 for FY 2022-23 (AY 2023-24) and FY 2021-22 (AY 2022-23).

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 :

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.

Major Changes in ITR 3 form for AY 2023-24

Below changes are incorporated in the ITR-3 form of the FY 2022-23:

  • 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’.

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

Login

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

Link Your PAN

Step 3: 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’.

 

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.

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.

 

If you are registered with other brokers then click on the button ‘Click here if you sold any assets’. Now, upload the capital gains report. To know how to extract them, click on ‘upload file’ and on the right, you can see the guides on how to download the report on all these platforms. Upload it and all your capital gains from shares and mutual funds are captured 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.

Go back to the dashboard. In the ‘speculative income’ section, enter details of your income from speculative transactions like intra-day trading, etc. .

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.

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’.

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 
 

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’.

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’.

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.

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. 

ITR Submitted Successfully

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

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 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 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

SectorSub‐SectorCode
AGRICULTURE, ANIMAL HUSBANDRY & FORESTRYGrowing and manufacturing of tea1001
 Growing and manufacturing of coffee1002
 Growing and manufacturing of rubber1003
 Market gardening and horticulture specialties1004
 Raising of silk worms and production of silk1005
 Raising of bees and production of honey1006
 Raising of poultry and production of eggs1007
 Rearing of sheep and production of wool1008
 Rearing of animals and production of animal 
products
1009
 Agricultural and animal husbandry services1010
   
   
   
 Soil conservation, soil testing and soil 
desalination services
1011
 Hunting, trapping and game propagation 
services
1012
 Growing of timber, plantation, operation of 
tree nurseries and conserving of forest
1013
 Gathering of tendu leaves1014
 Gathering of other wild growing materials1015
 Forestry service activities, timber cruising, 
afforestation and reforestation
1016
 Logging service activities, transport of logs 
within the forest
1017
 Other agriculture, animal husbandry or 
forestry activity n.e.c
1018
   
FISH FARMINGFishing on commercial basis in inland waters2001
 Fishing on commercial basis in ocean and 
coastal areas
2002
 Fish farming2003
 Gathering of marine materials such as natural 
pearls, sponges, coral etc.
2004
 Services related to marine and fresh water 
fisheries, fish hatcheries and fish farms
2005
 Other Fish farming activity n.e.c2006
   
MINING AND QUARRYINGMining and agglomeration of hard coal3001
 Mining and agglomeration of lignite3002
 Extraction and agglomeration of peat3003
 Extraction of crude petroleum and natural gas3004
 Service activities incidental to oil and gas 
extraction excluding surveying
3005
 Mining of uranium and thorium ores3006
 Mining of iron ores3007
 Mining of non‐ferrous metal ores, except 
uranium and thorium ores
3008
 Mining of gemstones3009
 Mining of chemical and fertilizer minerals3010
 Mining of quarrying of abrasive materials3011
 Mining of mica, graphite and asbestos3012
 Quarrying of stones 
(marble/granite/dolomite), sand and clay
3013
 Other mining and quarrying3014
 Mining and production of salt3015
 Other mining and quarrying n.e.c3016
   
MANUFACTURINGProduction, processing and preservation of 
meat and meat products
4001
 Production, processing and preservation of 
fish and fish products
4002
   
   
   
 Manufacture of vegetable oil, animal oil and 
fats
4003
 Processing of fruits, vegetables and edible 
nuts
4004
 Manufacture of dairy products4005
 Manufacture of sugar4006
 Manufacture of cocoa, chocolates and sugar 
confectionery
4007
 Flour milling4008
 Rice milling4009
 Dal milling4010
 Manufacture of other grain mill products4011
 Manufacture of bakery products4012
 Manufacture of starch products4013
 Manufacture of animal feeds4014
 Manufacture of other food products4015
 Manufacturing of wines4016
 Manufacture of beer4017
 Manufacture of malt liquors4018
 Distilling and blending of spirits, production of 
ethyl alcohol
4019
 Manufacture of mineral water4020
 Manufacture of soft drinks4021
 Manufacture of other non‐alcoholic beverages4022
 Manufacture of tobacco products4023
 Manufacture of textiles (other than by 
handloom)
4024
 Manufacture of textiles using handlooms 
(khadi)
4025
 Manufacture of carpet, rugs, blankets, shawls 
etc. (other than by hand)
4026
 Manufacture of carpet, rugs, blankets, shawls 
etc. by hand
4027
 Manufacture of wearing apparel4028
 Tanning and dressing of leather4029
 Manufacture of luggage, handbags and the 
like saddler and harness
4030
 Manufacture of footwear4031
 Manufacture of wood and wood products, 
cork, straw and plaiting material
4032
 Manufacture of paper and paper products4033
 Publishing, printing and reproduction of 
recorded media
4034
 Manufacture of coke oven products4035
 Manufacture of refined petroleum products4036
 Processing of nuclear fuel4037
 Manufacture of fertilizers and nitrogen 
compounds
4038
 Manufacture of plastics in primary forms and4039
   
   
   
 of synthetic rubber 
 Manufacture of paints, varnishes and similar 
coatings
4040
 Manufacture of pharmaceuticals, medicinal 
chemicals and botanical products
4041
 Manufacture of soap and detergents4042
 Manufacture of other chemical products4043
 Manufacture of man‐made fibers4044
 Manufacture of rubber products4045
 Manufacture of plastic products4046
 Manufacture of glass and glass products4047
 Manufacture of cement, lime and plaster4048
 Manufacture of articles of concrete, cement 
and plaster
4049
 Manufacture of Bricks4050
 Manufacture of other clay and ceramic 
products
4051
 Manufacture of other non‐metallic mineral 
products
4052
 Manufacture of pig iron, sponge iron, Direct 
Reduced Iron etc.
4053
 Manufacture of Ferro alloys4054
 Manufacture of Ingots, billets, blooms and 
slabs etc.
4055
 Manufacture of steel products4056
 Manufacture of basic precious and non‐ 
ferrous metals
4057
 Manufacture of non‐metallic mineral products4058
 Casting of metals4059
 Manufacture of fabricated metal products4060
 Manufacture of engines and turbines4061
 Manufacture of pumps and compressors4062
 Manufacture of bearings and gears4063
 Manufacture of ovens and furnaces4064
 Manufacture of lifting and handling 
equipment
4065
 Manufacture of other general‐purpose 
machinery
4066
 Manufacture of agricultural and forestry 
machinery
4067
 Manufacture of Machine Tools4068
 Manufacture of machinery for metallurgy4069
 Manufacture of machinery for mining, 
quarrying and constructions
4070
 Manufacture of machinery for processing of 
food and beverages
4071
 Manufacture of machinery for leather and 
textile
4072
 Manufacture of weapons and ammunition4073
   
   
   
 Manufacture of other special purpose 
machinery
4074
 Manufacture of domestic appliances4075
 Manufacture of office, accounting and 
computing machinery
4076
 Manufacture of electrical machinery and 
apparatus
4077
 Manufacture of Radio, Television, 
communication equipment and apparatus
4078
 Manufacture of medical and surgical 
equipment
4079
 Manufacture of industrial process control 
equipment
4080
 Manufacture of instruments and appliances 
for measurements and navigation
4081
 Manufacture of optical instruments4082
 Manufacture of watches and clocks4083
 Manufacture of motor vehicles4084
 Manufacture of body of motor vehicles4085
 Manufacture of parts & accessories of motor 
vehicles & engines
4086
 Building & repair of ships and boats4087
 Manufacture of railway locomotive and rolling 
stocks
4088
 Manufacture of aircraft and spacecraft4089
 Manufacture of bicycles4090
 Manufacture of other transport equipment4091
 Manufacture of furniture4092
 Manufacture of Jewellery4093
 Manufacture of sports goods4094
 Manufacture of musical instruments4095
 Manufacture of games and toys4096
 Other manufacturing n.e.c4097
 Recycling of metal waste and scrap4098
 Recycling of non‐ metal waste and scrap4099
   
ELECTRITY, GAS AND WATERProduction, collection and distribution of 
electricity
5001
 Manufacture and distribution of gas5002
 Collection, purification and distribution of 
water
5003
 Other essential commodity service n.e.c5004
   
CONSTRUCTIONSite preparation works6001
 Building of complete constructions or parts‐ 
civil contractors
6002
 Building installation6003
 Building completion6004
 Construction and maintenance of roads, rails,6005
   
   
   
 bridges, tunnels, ports, harbor, runways etc. 
 Construction and maintenance of power 
plants
6006
 Construction and maintenance of industrial 
plants
6007
 Construction and maintenance of power 
transmission and telecommunication lines
6008
 Construction of water ways and water 
reservoirs
6009
 Other construction activity n.e.c6010
   
REAL ESTATE AND RENTING SERVICESPurchase, sale and letting of leased buildings 
(residential and non‐residential)
7001
 Operating of real estate of self‐owned buildings 
(residential and non‐residential)
7002
 Developing and sub‐dividing real estate into 
lots
7003
 Real estate activities on a fee or contract basis7004
 Other real estate/renting services n.e.c7005
   
RENTING OF MACHINERYRenting of land transport equipment8001
 Renting of water transport equipment8002
 Renting of air transport equipment8003
 Renting of agricultural machinery and 
equipment
8004
 Renting of construction and civil engineering 
machinery
8005
 Renting of office machinery and equipment8006
 Renting of other machinery and equipment 
n.e.c
8007
 Renting of personal and household goods n.e.c8008
 Renting of other machinery n.e.c8009
   
WHOLESALE AND RETAIL TRADEWholesale and retail sale of motor vehicles9001
 Repair and maintenance of motor vehicles9002
 Sale of motor parts and accessories‐ wholesale 
and retail
9003
 Retail sale of automotive fuel9004
 General commission agents, commodity 
brokers and auctioneers
9005
 Wholesale of agricultural raw material9006
 Wholesale of food & beverages and tobacco9007
 Wholesale of household goods9008
 Wholesale of metals and metal ores9009
 Wholesale of household goods9010
 Wholesale of construction material9011
 Wholesale of hardware and sanitary fittings9012
 Wholesale of cotton and jute9013
   
   
   
 Wholesale of raw wool and raw silk9014
 Wholesale of other textile fibres9015
 Wholesale of industrial chemicals9016
 Wholesale of fertilizers and pesticides9017
 Wholesale of electronic parts & equipment9018
 Wholesale of other machinery, equipment and 
supplies
9019
 Wholesale of waste, scrap & materials for re‐ 
cycling
9020
 Retail sale of food, beverages and tobacco in 
specialized stores
9021
 Retail sale of other goods in specialized stores9022
 Retail sale in non‐specialized stores9023
 Retail sale of textiles, apparel, footwear, 
leather goods
9024
 Retail sale of other household appliances9025
 Retail sale of hardware, paint and glass9026
 Wholesale of other products n.e.c9027
 Retail sale of other products n.e.c9028
   
HOTELS, RESTAURANTS AND HOSPITALITY SERVICESHotels – Star rated10001
 Hotels – Non‐star rated10002
 Motels, Inns and Dharmshalas10003
 Guest houses and circuit houses10004
 Dormitories and hostels at educational 
institutions
10005
 Short stay accommodations n.e.c.10006
 Restaurants – with bars10007
 Restaurants – without bars10008
 Canteens10009
 Independent caterers10010
 Casinos and other games of chance10011
 Other hospitality services n.e.c.10012
   
TRANSPORT & LOGISTICS SERVICESTravel agencies and tour operators11001
 Packers and movers11002
 Passenger land transport11003
 Air transport11004
 Transport by urban/sub‐urban railways11005
 Inland water transport11006
 Sea and coastal water transport11007
 Freight transport by road11008
 Freight transport by railways11009
 Forwarding of freight11010
 Receiving and acceptance of freight11011
 Cargo handling11012
 Storage and warehousing11013
 Transport via pipelines (transport of gases, 
liquids, slurry and other commodities)
11014
   
   
   
 Other Transport & Logistics services n.e.c11015
   
POST AND 
TELECOMMUNICATION SERVICES
Post and courier activities12001
 Basic telecom services12002
 Value added telecom services12003
 Maintenance of telecom network12004
 Activities of the cable operators12005
 Other Post & Telecommunication services 
n.e.c
12006
   
FINANCIAL INTERMEDIATION SERVICESCommercial banks, saving banks and discount 
houses
13001
 Specialised institutions granting credit13002
 Financial leasing13003
 Hire‐purchase financing13004
 Housing finance activities13005
 Commercial loan activities13006
 Credit cards13007
 Mutual funds13008
 Chit fund13009
 Investment activities13010
 Life insurance13011
 Pension funding13012
 Non‐life insurance13013
 Administration of financial markets13014
 Stock brokers, sub‐brokers and related 
activities
13015
 Financial advisers, mortgage advisers and 
brokers
13016
 Foreign exchange services13017
 Other financial intermediation services n.e.c.13018
   
COMPUTER AND RELATED SERVICESSoftware development14001
 Other software consultancy14002
 Data processing14003
 Database activities and distribution of 
electronic content
14004
 Other IT enabled services14005
 BPO services14006
 Cyber café14007
 Maintenance and repair of office, accounting 
and computing machinery
14008
 Computer training and educational institutes14009
 Other computation related services n.e.c.14010
   
RESEARCH AND DEVELOPMENTNatural sciences and engineering15001
 Social sciences and humanities15002
 Other Research & Development activities 
n.e.c.
15003
   
   
   
   
PROFESSIONSLegal profession16001
 Accounting, book‐keeping and auditing 
profession
16002
 Tax consultancy16003
 Architectural profession16004
 Engineering and technical consultancy16005
 Advertising16006
 Fashion designing16007
 Interior decoration16008
 Photography16009
 Auctioneers16010
 Business brokerage16011
 Market research and public opinion polling16012
 Business and management consultancy 
activities
16013
 Labour recruitment and provision of personnel16014
 Investigation and security services16015
 Building‐cleaning and industrial cleaning 
activities
16016
 Packaging activities16017
 Secretarial activities16018
 Medical Profession16019_1
 Film Artist16020
 Other professional services n.e.c.16019
   
EDUCATION SERVICESPrimary education17001
 Secondary/ senior secondary education17002
 Technical and vocational secondary/ senior 
secondary education
17003
 Higher education17004
 Education by correspondence17005
 Coaching centres and tuitions17006
 Other education services n.e.c.17007
   
HEALTH CARE SERVICESGeneral hospitals18001
 Speciality and super speciality hospitals18002
 Nursing homes18003
 Diagnostic centres18004
 Pathological laboratories18005
 Independent blood banks18006
 Medical transcription18007
 Independent ambulance services18008
 Medical suppliers, agencies and stores18009
 Medical clinics18010
 Dental practice18011
 Ayurveda practice18012
 Unani practice18013
 Homeopathy practice18014
   
   
   
 Nurses, physiotherapists or other para‐ 
medical practitioners
18015
 Veterinary hospitals and practice18016
 Medical education18017
 Medical research18018
 Practice of other alternative medicine18019
 Other healthcare services18020
   
SOCIAL AND COMMUNITY WORKSocial work activities with accommodation 
(orphanages and old age homes)
19001
 Social work activities without accommodation 
(Creches)
19002
 Industry associations, chambers of commerce19003
 Professional organisations19004
 Trade unions19005
 Religious organizations19006
 Political organisations19007
 Other membership organisations n.e.c. (rotary 
clubs, book clubs and philatelic clubs)
19008
 Other Social or community service n.e.c19009
   
CULTURE AND SPORTMotion picture production20001
 Film distribution20002
 Film laboratories20003
 Television channel productions20004
 Television channels broadcast20005
 Video production and distribution20006
 Sound recording studios20007
 Radio ‐ recording and distribution20008
 Stage production and related activities20009
 Individual artists excluding authors20010
 Literary activities20011
 Other cultural activities n.e.c.20012
 Circuses and race tracks20013
 Video Parlours20014
 News agency activities20015
 Library and archives activities20016
 Museum activities20017
 Preservation of historical sites and buildings20018
 Botanical and zoological gardens20019
 Operation and maintenance of sports facilities20020
 Activities of sports and game schools20021
 Organisation and operation of indoor/outdoor sports and promotion and production of 
sporting events
20022
 Sports Management20023_01
 Other sporting activities n.e.c.20023
 Other recreational activities n.e.c.20024
   
   
   
   
OTHER SERVICESHair dressing and other beauty treatment21001
 Funeral and related activities21002
 Marriage bureaus21003
 Pet care services21004
 Sauna and steam baths, massage salons etc.21005
 Astrological and spiritualists’ activities21006
 Private households as employers of domestic 
staff
21007
 Event Management21008_01
 Other services n.e.c.21008
   
EXTRA TERRITORIAL ORGANISATIONS AND 
BODIES
Extra territorial organisations and bodies (IMF, World Bank, European Commission etc.)22001
   
*n.e.c. – not elsewhere classified  
   

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

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 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.

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.

Frequently Asked Questions 
 

I am an individual who has income from business and have opted for presumptive taxation. ITR-3 is applicable for me?

No, if you are opting for presumptive taxation of business or profession ITR-3 is not applicable for you. ITR-4 will be applicable for you.

ITR-3 is applicable for all assessees having a business income?

No, ITR-3 will be applicable for individuals or HUF with a business and profession income not chargeable under presumptive taxation.

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 FY 2022-23

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