ITR 3 Form – For Individuals and HUFs having income from profits and gains of business or profession

Who can file ITR-3?

ITR-3 Form is applicable for Individuals and HUFs having income from business or profession. You are required to furnish the return electronically if you fall in any of the following categories:

  • Person having income from business or profession.
  • Income from House property, salary or pension and any income from other sources.
  • Person claiming relief u/s 90, 90A or 91 for whom Schedule FSI and Schedule TR are applicable.

What is the Structure of ITR 3 Form?

Part A:

  • Part A-GEN: General information and Nature of Business (example PAN, Aadhar number)
  • Part A-BS: Balance Sheet as of March 31, 2018
  • Part A-P&L: Profit and Loss
  • Part A-OI: Other Information
  • Part A-QD: details about the principal traded item of goods traded, which is optional and not liable for audit u/s 44AB

Part B : Contains details of the total income and tax computation in respect of income chargeable total tax.

  • Statutory Verification
  • Details of Tax Payments : advance tax, TDS, self assessment tax

There are following schedules.

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

How to file ITR-3 Form?

You can file ITR-3 form either via offline or online.

Filing ITR-3 using Offline Method:

  • By furnishing return in a physical paper form. Income Tax Department will issue you an acknowledgement at the time of submission
  • By providing bar-coded return.

Conditions for ITR 3 filing through Offline Method:

You can file this return in paper form with the Income Tax Department only if you are:

Individual having age more than 80 years of age; or
Individual and HUF having income less than Rs.5 lakhs and who has no refund claims

Filing ITR-3 using Online Method:

You can file ITR-3 Form with the Income Tax Department in the below mentioned ways:

  • By submitting it through digital signature.
  • You can submit the verification of your return in Form ITR-V.
  • Verifying the return (ITR-V) electronically with e-verification code (EVC).

For individuals in the following categories, you must file your return electronically:

  • Income above Rs 5 lakh
  • Assets held outside of India by the resident individual or the signing authority is outside India
  • If claiming exemption u/s 90/90A or 91 and schedule FSI & TR are applicable

Some of the significant changes made in the ITR 3 for the AY 2018-19 are:

1. From AY 2018-19, This ITR has been specifically prescribed for individuals and HUF having “Income from Profits and Gains from Business or Profession”.

2. Fields under Schedule PL have been modified to include GST (Goods & Service Tax) related details;

3. Rate of Depreciation has been limited to a maximum of 40% in all depreciation related schedules.    

4. Under General Information, field of Section 115H has been added which relates to benefit being availed under certain cases even after the taxpayer becomes a resident.

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