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

This page contains information on filing ITR-3 for FY 2021-22 (AY 2022-23), FY 2020-21 (AY 2021-22), and FY 2019-20 (AY 2020-21)

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.

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.

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 21-22

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

Edit

Sector	Sub‐Sector	Code
AGRICULTURE, ANIMAL HUSBANDRY & FORESTRY	Growing and manufacturing of tea	1001
	Growing and manufacturing of coffee	1002
	Growing and manufacturing of rubber	1003
	Market gardening and horticulture specialties	1004
	Raising of silk worms and production of silk	1005
	Raising of bees and production of honey	1006
	Raising of poultry and production of eggs	1007
	Rearing of sheep and production of wool	1008
	Rearing of animals and production of animal products	1009
	Agricultural and animal husbandry services	1010
	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 leaves	1014
	Gathering of other wild growing materials	1015
	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 FARMING	Fishing on commercial basis in inland waters	2001
	Fishing on commercial basis in ocean and coastal areas	2002
	Fish farming	2003
	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.c	2006
MINING AND QUARRYING	Mining and agglomeration of hard coal	3001
	Mining and agglomeration of lignite	3002
	Extraction and agglomeration of peat	3003
	Extraction of crude petroleum and natural gas	3004
	Service activities incidental to oil and gas extraction excluding surveying	3005
	Mining of uranium and thorium ores	3006
	Mining of iron ores	3007
	Mining of non‐ferrous metal ores, except uranium and thorium ores	3008
	Mining of gemstones	3009
	Mining of chemical and fertilizer minerals	3010
	Mining of quarrying of abrasive materials	3011
	Mining of mica, graphite and asbestos	3012
	Quarrying of stones (marble/granite/dolomite), sand and clay	3013
	Other mining and quarrying	3014
	Mining and production of salt	3015
	Other mining and quarrying n.e.c	3016
MANUFACTURING	Production, 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 products	4005
	Manufacture of sugar	4006
	Manufacture of cocoa, chocolates and sugar confectionery	4007
	Flour milling	4008
	Rice milling	4009
	Dal milling	4010
	Manufacture of other grain mill products	4011
	Manufacture of bakery products	4012
	Manufacture of starch products	4013
	Manufacture of animal feeds	4014
	Manufacture of other food products	4015
	Manufacturing of wines	4016
	Manufacture of beer	4017
	Manufacture of malt liquors	4018
	Distilling and blending of spirits, production of ethyl alcohol	4019
	Manufacture of mineral water	4020
	Manufacture of soft drinks	4021
	Manufacture of other non‐alcoholic beverages	4022
	Manufacture of tobacco products	4023
	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 apparel	4028
	Tanning and dressing of leather	4029
	Manufacture of luggage, handbags and the like saddler and harness	4030
	Manufacture of footwear	4031
	Manufacture of wood and wood products, cork, straw and plaiting material	4032
	Manufacture of paper and paper products	4033
	Publishing, printing and reproduction of recorded media	4034
	Manufacture of coke oven products	4035
	Manufacture of refined petroleum products	4036
	Processing of nuclear fuel	4037
	Manufacture of fertilizers and nitrogen compounds	4038
	Manufacture of plastics in primary forms and	4039
	of synthetic rubber
	Manufacture of paints, varnishes and similar coatings	4040
	Manufacture of pharmaceuticals, medicinal chemicals and botanical products	4041
	Manufacture of soap and detergents	4042
	Manufacture of other chemical products	4043
	Manufacture of man‐made fibers	4044
	Manufacture of rubber products	4045
	Manufacture of plastic products	4046
	Manufacture of glass and glass products	4047
	Manufacture of cement, lime and plaster	4048
	Manufacture of articles of concrete, cement and plaster	4049
	Manufacture of Bricks	4050
	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 alloys	4054
	Manufacture of Ingots, billets, blooms and slabs etc.	4055
	Manufacture of steel products	4056
	Manufacture of basic precious and non‐ ferrous metals	4057
	Manufacture of non‐metallic mineral products	4058
	Casting of metals	4059
	Manufacture of fabricated metal products	4060
	Manufacture of engines and turbines	4061
	Manufacture of pumps and compressors	4062
	Manufacture of bearings and gears	4063
	Manufacture of ovens and furnaces	4064
	Manufacture of lifting and handling equipment	4065
	Manufacture of other general‐purpose machinery	4066
	Manufacture of agricultural and forestry machinery	4067
	Manufacture of Machine Tools	4068
	Manufacture of machinery for metallurgy	4069
	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 ammunition	4073
	Manufacture of other special purpose machinery	4074
	Manufacture of domestic appliances	4075
	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 instruments	4082
	Manufacture of watches and clocks	4083
	Manufacture of motor vehicles	4084
	Manufacture of body of motor vehicles	4085
	Manufacture of parts & accessories of motor vehicles & engines	4086
	Building & repair of ships and boats	4087
	Manufacture of railway locomotive and rolling stocks	4088
	Manufacture of aircraft and spacecraft	4089
	Manufacture of bicycles	4090
	Manufacture of other transport equipment	4091
	Manufacture of furniture	4092
	Manufacture of Jewellery	4093
	Manufacture of sports goods	4094
	Manufacture of musical instruments	4095
	Manufacture of games and toys	4096
	Other manufacturing n.e.c	4097
	Recycling of metal waste and scrap	4098
	Recycling of non‐ metal waste and scrap	4099
ELECTRITY, GAS AND WATER	Production, collection and distribution of electricity	5001
	Manufacture and distribution of gas	5002
	Collection, purification and distribution of water	5003
	Other essential commodity service n.e.c	5004
CONSTRUCTION	Site preparation works	6001
	Building of complete constructions or parts‐ civil contractors	6002
	Building installation	6003
	Building completion	6004
	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.c	6010
REAL ESTATE AND RENTING SERVICES	Purchase, 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 basis	7004
	Other real estate/renting services n.e.c	7005
RENTING OF MACHINERY	Renting of land transport equipment	8001
	Renting of water transport equipment	8002
	Renting of air transport equipment	8003
	Renting of agricultural machinery and equipment	8004
	Renting of construction and civil engineering machinery	8005
	Renting of office machinery and equipment	8006
	Renting of other machinery and equipment n.e.c	8007
	Renting of personal and household goods n.e.c	8008
	Renting of other machinery n.e.c	8009
WHOLESALE AND RETAIL TRADE	Wholesale and retail sale of motor vehicles	9001
	Repair and maintenance of motor vehicles	9002
	Sale of motor parts and accessories‐ wholesale and retail	9003
	Retail sale of automotive fuel	9004
	General commission agents, commodity brokers and auctioneers	9005
	Wholesale of agricultural raw material	9006
	Wholesale of food & beverages and tobacco	9007
	Wholesale of household goods	9008
	Wholesale of metals and metal ores	9009
	Wholesale of household goods	9010
	Wholesale of construction material	9011
	Wholesale of hardware and sanitary fittings	9012
	Wholesale of cotton and jute	9013
	Wholesale of raw wool and raw silk	9014
	Wholesale of other textile fibres	9015
	Wholesale of industrial chemicals	9016
	Wholesale of fertilizers and pesticides	9017
	Wholesale of electronic parts & equipment	9018
	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 stores	9022
	Retail sale in non‐specialized stores	9023
	Retail sale of textiles, apparel, footwear, leather goods	9024
	Retail sale of other household appliances	9025
	Retail sale of hardware, paint and glass	9026
	Wholesale of other products n.e.c	9027
	Retail sale of other products n.e.c	9028
HOTELS, RESTAURANTS AND HOSPITALITY SERVICES	Hotels – Star rated	10001
	Hotels – Non‐star rated	10002
	Motels, Inns and Dharmshalas	10003
	Guest houses and circuit houses	10004
	Dormitories and hostels at educational institutions	10005
	Short stay accommodations n.e.c.	10006
	Restaurants – with bars	10007
	Restaurants – without bars	10008
	Canteens	10009
	Independent caterers	10010
	Casinos and other games of chance	10011
	Other hospitality services n.e.c.	10012
TRANSPORT & LOGISTICS SERVICES	Travel agencies and tour operators	11001
	Packers and movers	11002
	Passenger land transport	11003
	Air transport	11004
	Transport by urban/sub‐urban railways	11005
	Inland water transport	11006
	Sea and coastal water transport	11007
	Freight transport by road	11008
	Freight transport by railways	11009
	Forwarding of freight	11010
	Receiving and acceptance of freight	11011
	Cargo handling	11012
	Storage and warehousing	11013
	Transport via pipelines (transport of gases, liquids, slurry and other commodities)	11014
	Other Transport & Logistics services n.e.c	11015
POST AND TELECOMMUNICATION SERVICES	Post and courier activities	12001
	Basic telecom services	12002
	Value added telecom services	12003
	Maintenance of telecom network	12004
	Activities of the cable operators	12005
	Other Post & Telecommunication services n.e.c	12006
FINANCIAL INTERMEDIATION SERVICES	Commercial banks, saving banks and discount houses	13001
	Specialised institutions granting credit	13002
	Financial leasing	13003
	Hire‐purchase financing	13004
	Housing finance activities	13005
	Commercial loan activities	13006
	Credit cards	13007
	Mutual funds	13008
	Chit fund	13009
	Investment activities	13010
	Life insurance	13011
	Pension funding	13012
	Non‐life insurance	13013
	Administration of financial markets	13014
	Stock brokers, sub‐brokers and related activities	13015
	Financial advisers, mortgage advisers and brokers	13016
	Foreign exchange services	13017
	Other financial intermediation services n.e.c.	13018
COMPUTER AND RELATED SERVICES	Software development	14001
	Other software consultancy	14002
	Data processing	14003
	Database activities and distribution of electronic content	14004
	Other IT enabled services	14005
	BPO services	14006
	Cyber café	14007
	Maintenance and repair of office, accounting and computing machinery	14008
	Computer training and educational institutes	14009
	Other computation related services n.e.c.	14010
RESEARCH AND DEVELOPMENT	Natural sciences and engineering	15001
	Social sciences and humanities	15002
	Other Research & Development activities n.e.c.	15003
PROFESSIONS	Legal profession	16001
	Accounting, book‐keeping and auditing profession	16002
	Tax consultancy	16003
	Architectural profession	16004
	Engineering and technical consultancy	16005
	Advertising	16006
	Fashion designing	16007
	Interior decoration	16008
	Photography	16009
	Auctioneers	16010
	Business brokerage	16011
	Market research and public opinion polling	16012
	Business and management consultancy activities	16013
	Labour recruitment and provision of personnel	16014
	Investigation and security services	16015
	Building‐cleaning and industrial cleaning activities	16016
	Packaging activities	16017
	Secretarial activities	16018
	Medical Profession	16019_1
	Film Artist	16020
	Other professional services n.e.c.	16019
EDUCATION SERVICES	Primary education	17001
	Secondary/ senior secondary education	17002
	Technical and vocational secondary/ senior secondary education	17003
	Higher education	17004
	Education by correspondence	17005
	Coaching centres and tuitions	17006
	Other education services n.e.c.	17007
HEALTH CARE SERVICES	General hospitals	18001
	Speciality and super speciality hospitals	18002
	Nursing homes	18003
	Diagnostic centres	18004
	Pathological laboratories	18005
	Independent blood banks	18006
	Medical transcription	18007
	Independent ambulance services	18008
	Medical suppliers, agencies and stores	18009
	Medical clinics	18010
	Dental practice	18011
	Ayurveda practice	18012
	Unani practice	18013
	Homeopathy practice	18014
	Nurses, physiotherapists or other para‐ medical practitioners	18015
	Veterinary hospitals and practice	18016
	Medical education	18017
	Medical research	18018
	Practice of other alternative medicine	18019
	Other healthcare services	18020
SOCIAL AND COMMUNITY WORK	Social work activities with accommodation (orphanages and old age homes)	19001
	Social work activities without accommodation (Creches)	19002
	Industry associations, chambers of commerce	19003
	Professional organisations	19004
	Trade unions	19005
	Religious organizations	19006
	Political organisations	19007
	Other membership organisations n.e.c. (rotary clubs, book clubs and philatelic clubs)	19008
	Other Social or community service n.e.c	19009
CULTURE AND SPORT	Motion picture production	20001
	Film distribution	20002
	Film laboratories	20003
	Television channel productions	20004
	Television channels broadcast	20005
	Video production and distribution	20006
	Sound recording studios	20007
	Radio ‐ recording and distribution	20008
	Stage production and related activities	20009
	Individual artists excluding authors	20010
	Literary activities	20011
	Other cultural activities n.e.c.	20012
	Circuses and race tracks	20013
	Video Parlours	20014
	News agency activities	20015
	Library and archives activities	20016
	Museum activities	20017
	Preservation of historical sites and buildings	20018
	Botanical and zoological gardens	20019
	Operation and maintenance of sports facilities	20020
	Activities of sports and game schools	20021
	Organisation and operation of indoor/outdoor sports and promotion and production of sporting events	20022
	Sports Management	20023_01
	Other sporting activities n.e.c.	20023
	Other recreational activities n.e.c.	20024
OTHER SERVICES	Hair dressing and other beauty treatment	21001
	Funeral and related activities	21002
	Marriage bureaus	21003
	Pet care services	21004
	Sauna and steam baths, massage salons etc.	21005
	Astrological and spiritualists’ activities	21006
	Private households as employers of domestic staff	21007
	Event Management	21008_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

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.