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

A comprehensive guide to understanding the ITR-3 Form

Updated on :  

08 min read.

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

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

ITR-3 is divided into:

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

After this, there are the following schedules.

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

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.

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