Introduction

For many individuals, filing their taxes is a difficult and time-consuming chore. However, if done correctly and legally, it may be a simple and well-organized process. The filing of income tax forms is separated into numerous categories, and individuals must file the forms according to the group in which they fall. One of the categories is the ITR-3 form.

What Is ITR-3 Form?

The ITR 3 is an income tax return that must be filed by individuals and Hindu Undivided Families (HUF) who generate income from their businesses or professions.

All About Income Tax Return Form 3

What Is The Format Of The ITR-3 Form?

The ITR-3 form is divided into two halves, A&B, each comprising 23 schedules.

Part A: consists of general information.

  • Part A-GEN: General Information and the Business Environment.
  • Manufacturing Account (Part A): Manufacturing Account for the fiscal year.
  • Quantitative Details (Part A-QD) (optional in a case not liable for audit under Section 44AB) Part A-BS: The Balance Sheet of the Proprietary Business or Profession as of March 31st. Part A-OI (Other Information) is a section of the application (optional in a case not liable for audit under Section 44AB).
  • Part A: Trading Account: Profit and Loss for the Financial Year Trading Account for the Fiscal Year (Part A-P&L).

Part B: Outline the entire income and tax computation based on the total tax chargeable.

  • Advance tax, TDS, and self-assessment tax payments are all detailed here.

23 Schedules

  • Calculation of revenue under the heading Salaries on Schedule-S.
  • Income from House Property (Schedule-HP): Computation of income.
  • Schedule-IF: Information on the assessee’s participation in partnership firms.
  • Schedule-BP: Calculation of income under the heading “profit and earnings from trade or profession” (salary, interest, and other sources of income).
  • GST Schedule: Information on gross receipts and turnover reported for GST.
  • Schedule-CYLA: Income statement after current year losses have been deducted.
  • Schedule-CG: Income computation for the capital gains section.
  • Calculation of income on Schedule-OS under the heading Income from Other Sources.
  • Income statement after set-off of unabsorbed loss carried forward from prior years (Schedule-BFLA).
  • Schedule- CFL: Loss statement to be carried forward to subsequent years.
  • Schedule-VIA: Deductions under Chapter VIA (from total income).
  • Schedule SPI: Income from a spouse, minor child, son’s wife, or any other person or group of individuals should be included in the assessee’s income in Schedules HP, BP, CG, and OS.
  • A statement of charitable contributions that are qualified for a deduction under section 80G is called a Schedule 80G.
  • Schedule-SI: A statement of income that is subject to special tax rates.
  • Statement of Income (Schedule-EI) that is not included in total income (exempt incomes).
  • Schedule-IT: Payment of advance tax and self-assessment tax statement.
  • Statement of tax deducted at source on salary (Schedule-TDS1).
  • Schedule-TDS2 is a statement of tax deducted at source on non-salary income.
  • TCS (Tax Collection Statement): TCS is a statement of tax collected at the source
  • Statement of income accruing or generating outside India (Schedule-FSI).
  • TR Schedule: Statement of tax relief claimed under section 90, 90A, or 91 of the Internal Revenue Code.
  • Statement of your Foreign Assets (Schedule-FA).
  • Schedule-5A: Statement of income allocation between spouses by the Portuguese Civil Code.
  • Schedule-AL: At the end of the year, make a statement of your assets and liabilities. If your total income exceeds Rs.50 lakhs, you must file it.

The Procedure For Downloading The ITR-3 Form

  • The first step in the ITR-3 download process is to go to the government’s Income Tax Department website: 
  • Income Tax Department website. Register as a user to begin the ITR-2 download procedure. After you’ve completed the signup process.
  • Go to the Income Tax Department’s website and log in to your account.
  • Under the Download menu, select the “Offline Utilities” option.
  • Then click the “Income Tax Return Preparation Utilities” button 
  • For the Income Tax Return Preparation Utilities, select “Assessment Year.”
  • The ITR-3 Form can then be downloaded in excel format by selecting the tab “Excel Utility.”
  • The ITR-3 form will be downloaded in ZIP format to your PC or laptop. Fill in all of the essential fields after extracting the file.

In terms of how to file ITR-3, the form is for the assessment year and it pertains to income earned and taxed during the fiscal year.

All About Income Tax Return Form 3

ITR-3 Online Filing Instructions:

  • The ITR-3 form is for people and HUFs (Hindu Undivided Families) that earn their income from a profession or a company, as previously stated. 
  • The ITR-3 Form can be downloaded from the government’s Income Tax Department website by these persons or members of the HUF. 
  • The form is then uploaded to the income tax system when they have completed it with all of the required information. 
  • The digital signature of the company is used to verify the information.
  • The user receives an acknowledgement receipt via email on their registered email id after utilizing this. 
  • Within 120 days of filing the ITR-3, the user can sign the acknowledgement receipt and mail it to the nearest Income Tax Department office. 
  • Because it is an annexure-free form, it does not require any supplementary or supporting documentation at the time of filing.

ITR-3 Offline Filing Instructions:

  • There are eligibility conditions for taxpayers who want to file ITR-3 offline.
  • They must be people who are at least 80 years old.
  • Individuals with an annual income of less than Rs. 5 lakh and who are not eligible for an income tax refund must apply.

These individuals can subsequently submit ITR-3 in either paper or bar-coded form to any of the Income Tax Department’s nearest offices.

For The Fiscal Year, There Are Seven Key Changes In ITR-3

The residential status section has been split into three sub-categories:’resident,’ resident by not typically resident,’ and ‘non-resident.’

Individual taxpayers are required to submit all information on any past dictatorships held in any other company, as well as a list of the shares.

Individual taxpayers who are partners in another firm must reveal the name and PAN of the partner firm with which they are working.

  • Partners in partnership firms will be required to file ITR 3 filings rather than ITR 2.
  • The specifics of the exempted allowances and salary deductions must be submitted by the taxpayers.
  • In the case of schedule OS, the taxpayer must specify any other income that is subject to a specific tax rate. In addition, complete and accurate information on other sources of income must be submitted.
  • Individuals must provide information about their turnover/GST under Schedule GST.

Filling Out The Necessary Paperwork For Verification

All information recorded on the income tax return, as well as the information in the ITR 3 form, must be correct and accurate, and the taxpayer must also complete the verification along with completing the income tax returns.

Conclusion

Under Section-277 of the Income Tax Act of 1961, any person who makes a false declaration or is detected doing wrong activities when submitting the return or any of the schedules is liable and can be prosecuted.

The individual will be sentenced to prison as well as a fine, and he or she may face further penalties.