Document

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

By Mohammed S Chokhawala

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Updated on: Jul 18th, 2024

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57 min read

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

What is the ITR-3 Form?

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

Who can file ITR-3 Form?

Who is not eligible to file ITR-3 Form?

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

Due date for filing the ITR-3 form

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

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

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

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

 

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
ITR e filing

Step 1: Login

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

Step 2: Link Your PAN

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

Link your PAN with Cleartax

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

Step 3: Pre-fill Your Personal Information

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

Pre-fill your tax returns OTP
 

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.

Pre-fill information Cleartax

Step 4: Edit and Review Details

Personal Information

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

Personal info tab Cleartax

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

Income Sources tab Cleartax

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

Capital gains tab Cleartax

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

Profit from Business or Profession

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

Business income tab

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

P&L statement

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.

financial statements

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.  
 

Deductions tab on Cleartax

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

Step 5: Enter the Tax Paid Details

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

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

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

Taxes paid cleartax

Step 6: Schedule AL and Other Disclosures

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

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

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

other disclosures

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

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

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

Tax summary

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

Step 8: Self-Declaration

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

Self declaration cleartax

Step 9: Pay Taxes

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

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

Step 10: Make Payment

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

payment successful

Step 11: ITR Submitted Successfully

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

ITR-3 filed successfully

Step 12: e-Verify

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

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

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

ITR-3 is divided into:

  • Part A
    • Part A-GEN: General information and Nature of Business
    • Part A-BS: Balance Sheet as of March 31, 2021, of the Proprietary Business or Profession
    • Part A- Manufacturing Account: Manufacturing Account for the financial year 2020-21
    • Part A- Trading Account: Trading Account for the financial year 2020-21
    • Part A-P&L: Profit and Loss for the financial Year 2020-21
    • Part A-OI: Other Information (optional in a case not liable for audit under Section 44AB)
    • Part A-QD: Quantitative Details (optional in a case not liable for audit under Section 44AB)

After this, there are the following schedules.

  • Schedule-S: Computation of income under the head Salaries.
  • Schedule-HP: Computation of income under the head Income from House Property
  • Schedule BP: Computation of income from business or profession
  • Schedule-DPM: Computation of depreciation on plant and machinery under the Income-tax Act
  • Schedule DOA: Computation of depreciation on other assets under the Income-tax Act
  • Schedule DEP: Summary of depreciation on all the assets under the Income-tax Act
  • Schedule DCG: Computation of deemed capital gains on the sale of depreciable assets
  • Schedule ESR: Deduction under section 35 (expenditure on scientific research)
  • Schedule-CG: Computation of income under the head Capital gains.
  • Schedule 112A: Details of Capital Gains where section 112A is applicable
  • Schedule 115AD(1)(b)(iii)Proviso: For Non-Residents Details of Capital Gains where section 112A is applicable.
  • Schedule-OS: Computation of income under the head Income from other sources.
  • Schedule-CYLA-BFLA: Statement of income after set off of current year’s losses and Statement of income after set off of unabsorbed loss brought forward from earlier years.
  • Schedule-CYLA: Statement of income after set off of current year’s losses
  • Schedule BFLA: Statement of income after set off of unabsorbed loss brought forward from earlier years.
  • Schedule CFL: Statement of losses to be carried forward to future years.
  • Schedule- UD: Statement of unabsorbed depreciation.
  • Schedule ICDS – Effect of Income Computation Disclosure Standards on Profit
  • Schedule- 10AA: Computation of deduction under section 10AA.
  • Schedule 80G: Statement of donations entitled for deduction under section 80G.
  • Schedule RA: Statement of donations to research associations etc. entitled for deduction under section 35(1)(ii) or 35(1)(iia) or 35(1)(iii) or 35(2AA)
  • Schedule- 80IA: Computation of deduction under section 80IA.
  • Schedule- 80IB: Computation of deduction under section 80IB.
  • Schedule- 80IC/ 80-IE: Computation of deduction under section 80IC/ 80-IE.
  • Schedule VI-A: Statement of deductions (from total income) under Chapter VIA.
  • Schedule AMT: Computation of Alternate Minimum Tax Payable under Section 115JC
  • Schedule AMTC: Computation of tax credit under section 115JD
  • Schedule SPI: Statement of income arising to spouse/ minor child/ son’s wife or any other person or association of persons to be included in the income of the assessee in Schedules-HP, BP, CG and OS.
  • Schedule SI: Statement of income which is chargeable to tax at special rates
  • Schedule-IF: Information regarding partnership firms in which assessee is a partner.
  • Schedule EI: Statement of Income not included in total income (exempt incomes)
  • Schedule PTI: Pass through income details from a business trust or investment fund as per section 115UA, 115UB
  • Schedule TPSA: Secondary adjustment to transfer price as per section 92CE(2A)
  • Schedule FSI: Details of income from outside India and tax relief
  • Schedule TR: Statement of tax relief claimed under section 90 or section 90A or section 91.
  • Schedule FA: Statement of Foreign Assets and income from any source outside India.
  • Schedule 5A: Information regarding apportionment of income between spouses governed by Portuguese Civil Code
  • Schedule AL: Asset and Liability at the end of the year(applicable where the total income exceeds Rs 50 lakhs)
  • Schedule tax deferred on ESOP: Information of tax-deferred on ESOPS received from eligible start-ups referred to in Section 80-IAC
  • Schedule GST: Information regarding turnover/ Gross receipt reported for GST
  • Part B-TI: Computation of Total Income.
  • Part B-TTI: Computation of tax liability on total income.
  • Verification

How do I file my ITR-3 Form?

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

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

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

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

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

How to fill out the verification document?

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

Business Codes for ITR Forms

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 of synthetic rubber

4039

 

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, bridges, tunnels, ports, harbor, runways etc.

6005

 

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 2021-22 and AY 2022-23?

ITR-3 is divided into:

  • Part A
    • Part A-GEN: General information and Nature of Business
    • Part A-BS: Balance Sheet as of March 31, 2021, of the Proprietary Business or Profession
    • Part A- Manufacturing Account: Manufacturing Account for the financial year 2020-21
    • Part A- Trading Account: Trading Account for the financial year 2020-21
    • Part A-P&L: Profit and Loss for the financial Year 2020-21
    • Part A-OI: Other Information (optional in a case not liable for audit under Section 44AB)
    • Part A-QD: Quantitative Details (optional in a case not liable for audit under Section 44AB)

After this, there are the following schedules.

  • Schedule-S: Computation of income under the head Salaries.
  • Schedule-HP: Computation of income under the head Income from House Property
  • Schedule BP: Computation of income from business or profession
  • Schedule-DPM: Computation of depreciation on plant and machinery under the Income-tax Act
  • Schedule DOA: Computation of depreciation on other assets under the Income-tax Act
  • Schedule DEP: Summary of depreciation on all the assets under the Income-tax Act
  • Schedule DCG: Computation of deemed capital gains on the sale of depreciable assets
  • Schedule ESR: Deduction under section 35 (expenditure on scientific research)
  • Schedule-CG: Computation of income under the head Capital gains.
  • Schedule 112A: Details of Capital Gains where section 112A is applicable
  • Schedule 115AD(1)(b)(iii)Proviso: For Non-Residents Details of Capital Gains where section 112A is applicable
  • Schedule-OS: Computation of income under the head Income from other sources.
  • Schedule-CYLA-BFLA: Statement of income after set off of current year’s losses and Statement of income after set off of unabsorbed loss brought forward from earlier years.
  • Schedule-CYLA: Statement of income after set off of current year’s losses
  • Schedule BFLA: Statement of income after set off of unabsorbed loss brought forward from earlier years.
  • Schedule CFL: Statement of losses to be carried forward to future years.
  • Schedule- UD: Statement of unabsorbed depreciation.
  • Schedule ICDS – Effect of Income Computation Disclosure Standards on Profit
  • Schedule- 10AA: Computation of deduction under section 10AA.
  • Schedule 80G: Statement of donations entitled for deduction under section 80G.
  • Schedule RA: Statement of donations to research associations etc. entitled for deduction under section 35(1)(ii) or 35(1)(iia) or 35(1)(iii) or 35(2AA)
  • Schedule- 80IA: Computation of deduction under section 80IA.
  • Schedule- 80IB: Computation of deduction under section 80IB.
  • Schedule- 80IC/ 80-IE: Computation of deduction under section 80IC/ 80-IE.
  • Schedule VI-A: Statement of deductions (from total income) under Chapter VIA.
  • Schedule AMT: Computation of Alternate Minimum Tax Payable under Section 115JC
  • Schedule AMTC: Computation of tax credit under section 115JD
  • Schedule SPI: Statement of income arising to spouse/ minor child/ son’s wife or any other person or association of persons to be included in the income of the assessee in Schedules-HP, BP, CG and OS.
  • Schedule SI: Statement of income which is chargeable to tax at special rates
  • Schedule-IF: Information regarding partnership firms in which assessee is a partner.
  • Schedule EI: Statement of Income not included in total income (exempt incomes)
  • Schedule PTI: Pass through income details from a business trust or investment fund as per section 115UA, 115UB
  • Schedule TPSA: Secondary adjustment to transfer price as per section 92CE(2A)
  • Schedule FSI: Details of income from outside India and tax relief
  • Schedule TR: Statement of tax relief claimed under section 90 or section 90A or section 91.
  • Schedule FA: Statement of Foreign Assets and income from any source outside India.
  • Schedule 5A: Information regarding apportionment of income between spouses governed by Portuguese Civil Code
  • Schedule AL: Asset and Liability at the end of the year(applicable where the total income exceeds Rs 50 lakhs)
  • Schedule tax deferred on ESOP: Information of tax-deferred on ESOPS received from eligible start-ups referred to in Section 80-IAC
  • Schedule GST: Information regarding turnover/ Gross receipt reported for GST
  • Part B-TI: Computation of Total Income.
  • Part B-TTI: Computation of tax liability on total income.
  • Verification

Major Changes in ITR 3 form for AY 2021-22

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

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

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

ITR-3 is divided into:

  • Part A
    • Part A-GEN: General information and Nature of Business
    • Part A-BS: Balance Sheet as of March 31, 2020, of the Proprietary Business or Profession
    • Part A- Manufacturing Account: Manufacturing Account for the financial year 2020-21
    • Part A- Trading Account: Trading Account for the financial year 2020-21
    • Part A-P&L: Profit and Loss for the financial Year 2020-21
    • Part A-OI: Other Information (optional in a case not liable for audit under Section 44AB)
    • Part A-QD: Quantitative Details (optional in a case not liable for audit under Section 44AB)

After this, there are the following schedules.

  • Schedule-S: Computation of income under the head Salaries.
  • Schedule-HP: Computation of income under the head Income from House Property
  • Schedule BP: Computation of income from business or profession
  • Schedule-DPM: Computation of depreciation on plant and machinery under the Income-tax Act
  • Schedule DOA: Computation of depreciation on other assets under the Income-tax Act
  • Schedule DEP: Summary of depreciation on all the assets under the Income-tax Act
  • Schedule DCG: Computation of deemed capital gains on the sale of depreciable assets
  • Schedule ESR: Deduction under section 35 (expenditure on scientific research)
  • Schedule-CG: Computation of income under the head Capital gains.
  • Schedule 112A: Details of Capital Gains where section 112A is applicable
  • Schedule 115AD(1)(b)(iii)Proviso: For Non Residents Details of Capital Gains where section 112A is applicable
  • Schedule-OS: Computation of income under the head Income from other sources.
  • Schedule-CYLA-BFLA: Statement of income after set off of current year’s losses and Statement of income after set off of unabsorbed loss brought forward from earlier years.
  • Schedule-CYLA: Statement of income after set off of current year’s losses
  • Schedule BFLA: Statement of income after set off of unabsorbed loss brought forward from earlier years.
  • Schedule CFL: Statement of losses to be carried forward to future years.
  • Schedule- UD: Statement of unabsorbed depreciation.
  • Schedule ICDS – Effect of Income Computation Disclosure Standards on Profit
  • Schedule- 10AA: Computation of deduction under section 10AA.
  • Schedule 80G: Statement of donations entitled for deduction under section 80G.
  • Schedule RA: Statement of donations to research associations etc. entitled for deduction under section 35(1)(ii) or 35(1)(iia) or 35(1)(iii) or 35(2AA)
  • Schedule- 80IA: Computation of deduction under section 80IA.
  • Schedule- 80IB: Computation of deduction under section 80IB.
  • Schedule- 80IC/ 80-IE: Computation of deduction under section 80IC/ 80-IE.
  • Schedule VI-A: Statement of deductions (from total income) under Chapter VIA.
  • Schedule AMT: Computation of Alternate Minimum Tax Payable under Section 115JC
  • Schedule AMTC: Computation of tax credit under section 115JD
  • Schedule SPI: Statement of income arising to spouse/ minor child/ son’s wife or any other person or association of persons to be included in the income of the assessee in Schedules-HP, BP, CG and OS.
  • Schedule SI: Statement of income which is chargeable to tax at special rates
  • Schedule-IF: Information regarding partnership firms in which assessee is a partner.
  • Schedule EI: Statement of Income not included in total income (exempt incomes)
  • Schedule PTI: Pass through income details from a business trust or investment fund as per section 115UA, 115UB
  • Schedule TPSA: Secondary adjustment to transfer price as per section 92CE(2A)
  • Schedule FSI: Details of income from outside India and tax relief
  • Schedule TR: Statement of tax relief claimed under section 90 or section 90A or section 91.
  • Schedule FA: Statement of Foreign Assets and income from any source outside India.
  • Schedule 5A: Information regarding apportionment of income between spouses governed by Portuguese Civil Code
  • Schedule AL: Asset and Liability at the end of the year(applicable where the total income exceeds Rs 50 lakh)
  • Schedule GST: Information regarding turnover/ Gross receipt reported for GST
  • Part B-TI: Computation of total income.
  • Part B-TTI: Computation of tax liability on total income.
  • Verification

Note:

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

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

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

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

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

ITR 3 for AY 2018-19

ITR-3 is divided into:

  • Part A
    • Part A-GEN: General information and Nature of Business
    • Part A-BS: Balance Sheet as of March 31, 2017, of the Proprietary Business or Profession
    • Part A-P&L: Profit and Loss for the Financial Year 2016-17
    • Part A-OI: Other Information (optional in a case not liable for audit under Section 44AB)
    • Part A-QD: Quantitative Details (optional in a case not liable for audit under Section 44AB)
  • Part B: Outline of the total income and tax computation in respect of income chargeable total tax.
  • Verification
  • Tax Payments: Details of advance tax, TDS, self-assessment tax.

After this, there are the following schedules.

  • Schedule-S: Computation of income under the head Salaries.
  • Schedule-HP: Computation of income under the head Income from House Property
  • Schedule BP: Computation of income from business or profession.
  • Schedule-DPM: Computation of depreciation on plant and machinery under the Income-tax Act
  • Schedule DOA: Computation of depreciation on other assets under the Income-tax Act
  • Schedule DEP: Summary of depreciation on all the assets under the Income-tax Act
  • Schedule DCG: Computation of deemed capital gains on the sale of depreciable assets
  • Schedule ESR: Deduction under section 35 (expenditure on scientific research)
  • Schedule-CG: Computation of income under the head Capital gains.
  • Schedule-OS: Computation of income under the head Income from other sources.
  • Schedule-CYLA: Statement of income after set off of current year’s losses
  • Schedule BFLA: Statement of income after set off of unabsorbed loss brought forward from earlier years.
  • Schedule CFL: Statement of losses to be carried forward to future years.
  • Schedule- UD: Statement of unabsorbed depreciation.
  • Schedule ICDS – Effect of Income Computation Disclosure Standards on Profit.
  • Schedule- 10AA: Computation of deduction under section 10AA.
  • Schedule 80G: Statement of donations entitled for deduction under section 80G.
  • Schedule- 80IA: Computation of deduction under section 80IA.
  • Schedule- 80IB: Computation of deduction under section 80IB.
  • Schedule- 80IC/ 80-IE: Computation of deduction under section 80IC/ 80-IE.
  • Schedule VIA: Statement of deductions (from total income) under Chapter VIA.
  • Schedule AMT: Computation of Alternate Minimum Tax Payable under Section 115JC.
  • Schedule AMTC: Computation of tax credit under section 115JD.
  • Schedule SPI: Statement of income arising to spouse/ minor child/ son’s wife or any other person or association of persons to be included in the income of assessee in Schedules-HP, BP, CG and OS.
  • Schedule SI: Statement of income which is chargeable to tax at special rates
  • Schedule-IF: Information regarding partnership firms in which assessee is a partner.
  • Schedule EI: Statement of Income not included in total income (exempt incomes)
  • Schedule PTI: Pass through income details from a business trust or investment fund as per section 115UA, 115UB
  • Schedule FSI: Details of income from outside India and tax relief
  • Schedule TR: Statement of tax relief claimed under Section 90 or Section 90A or Section 91.
  • Schedule FA: Statement of Foreign Assets.
  • Schedule 5A: Information regarding apportionment of income between spouses governed by Portuguese Civil Code
  • Schedule AL: Asset and Liability at the end of the year(applicable where the total income exceeds Rs 50 lakh)

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

Quoting of Aadhaar Number

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

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

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

Disclosure of unexplained income and Dividend Income

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

Disclosure of GST related details

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

Limitation on claim for depreciation

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

Partners filing of income tax return

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

Option to select section 115H

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

Major Changes in ITR 3 form for AY 2018-19

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

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

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.

What is the difference between ITR-3 & ITR-4 ?

ITR-4 is filed by individuals & HUFs declaring business income under presumptive basis (under section 44AD, 44ADA, 44AE) and total income does not exceed Rs 50 lakhs. While ITR-3 is filed by individuals and HUF individuals & HUFs who are required to maintain books of accounts, where audit may or may not be applicable. Director of a company deriving director remuneration needs to file ITR 3.

What is the late filing fees for ITR-3?

Not filing of ITR-3 within the due date for Assessment Year 2024-25, may attract penalty upto Rs. 1,000 for individuals with income upto Rs. 5,00,000 and penalty of Rs. 5,000 for individuals with income more than Rs.5,00,000. A belated return can be filed within 31st December for not filing the return within the due date. This will attract interest at the rate of 1% per month on the due amount of tax.

About the Author

I'm a chartered accountant, well-versed in the ins and outs of income tax, GST, and keeping the books balanced. Numbers are my thing, I can sift through financial statements and tax codes with the best of them. But there's another side to me – a side that thrives on words, not figures. Read more

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Clear offers taxation & financial solutions to individuals, businesses, organizations & chartered accountants in India. Clear serves 1.5+ Million happy customers, 20000+ CAs & tax experts & 10000+ businesses across India.

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