ITR-3 Return Filing

ITR-3 Return Filing

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Income tax return filing for a taxpayer with taxable income of less than Rs.25 lakhs.


Income tax return filing for a taxpayer with taxable income of less than Rs.50 lakhs.


Income tax return filing for a taxpayer with taxable income of Rs.20 lakhs to Rs.100 lakhs.

Who is eligible to submit the ITR 3 Form?

Who can file an ITR 3 file?

ITR 3 because it should be applied to individuals and HUFs who earn income from doing a particular job or business ownership. Form ITR 3 may be used if the testing revenue falls into the categories listed below:

Earnings from doing a particular job. Revenue from the ownership business. Apart from this, the benefits of the business may also include housing, income, or pensions, as well as income from other sources.

Who is not eligible to submit the ITR 3 Form?

If a person or Hindu Undivided Family acts as a partner in a cooperative firm doing a business or activity then he or she will not be able to submit the ITR 3 form as he or she will be eligible to submit Form ITR 2.

Structure of Form ITR 3

ITR-3 is divided into:

Part A includes-

  •       Part A-GEN: General Information and Business Type
  •       Part A-BS: Balance from March 31, 2020, for Business Ownership or Professionalism
  •       Part A- Production Account: Production Account for the 2019-20 financial year
  •       Part A- Trading Account: Trading Account for the 2019-20 financial year
  •       Part A-P&L: Profits and Losses for the 2019-20 Financial Year
  •       Section A-OI: Other Information (optional audit under Section 44AB)
  •       Part A-QD: Quantitative Information (optional in non-perishable condition for research under Section 44AB)

Schedules include:

Schedule-S: Calculation of income under head Salaries.

Schedule-HP: Income calculation of income Income from House Property

Schedule BP: Calculation of income from a business or workplace

Schedule-DPM: Calculation of depreciation of machinery and equipment under the Income-tax Act

DOA Schedule: Calculation of depreciation of certain assets under the Income-tax Act

DEP Schedule: Summary of depreciation of all assets under the Income-tax Act

DCG Schedule: Calculation of proceeds from the sale of declining assets

ESR Schedule: Detention under section 35 (costs of scientific research)

Schedule-CG: Calculation of revenue under the head Profit income.

Schedule 112A: Details of Financial Benefits in which section 112A applies

Schedule 115AD (1) (iii) Provision: For Non-Citizens’ Profits Details of Financial Benefits where section 112A applies

Schedule-OS: Income calculation of revenue Revenue from other sources.

Schedule-CYLA-BFLA: Statement of income after suspension of current losses and Statement of income after initiation of uncollected losses submitted in previous years.

Schedule-CYLA: Statement of income after suspension of current year losses

BFLA Schedule: Statement of income after deductions of uncollected losses submitted in previous years.

Schedule CFL: Statement of losses to be continued for years to come.

Schedule- UD: Uncontrolled depreciation statement.

ICDS Schedule: The Impact of the Income Disclosure Rate of Profits

Schedule 10AA: Calculation of deductions under section 10AA.

Schedule 80G: Statement of donations authorized for deductions under section 80G.

RA Schedule: Statement of contributions of research organizations etc. has the authority to be arrested under section 35 (1) (ii) or 35 (1) (iiA) or 35 (1) (iii) or 35 (2AA)

Schedule 80IA: Calculation of deductions under section 80IA.

Schedule 80IB: Calculation of deductions under section 80IB.

Schedule-80IC / 80-IE: Accounting for deductions under section 80IC / 80-IE.

Schedule VIA: Statement of deduction (from all revenue) under Chapter VIA.

SPI-SI-IF Schedule: Individual income (partner, minority, etc.) included in the examinee’s income, Income charged at special rates, experienced co-operative firms where the examiner is a partner.

AMT Schedule: Calculation of Another Minimum Tax Payment Under Section 115JC

AMTC Schedule: Tax credit calculation under section 115JD

SPI Schedule: Statement of income received by spouse/minor/son’s wife or any other person or organization of persons to be included in the income received by the auditor in Schedules – HP, BP, CG, and OS.

Schedule SI: Statement of taxable income at special rates

Schedule-IF: Information about affiliated firms where the examiner is a partner.

EI Schedule: Income Statement is not included in revenue (release revenue)

PTI Schedule: Details of income from business trust or investment fund in terms of section 115UA, 115UB

TPSA Schedule: The second adjustment to transfer price in terms of section 92CE (2A)

FSI Schedule: Details of income from outside India and tax exemptions

Schedule TR: Statement of tax exemption required under section 90 or section 90A or section 91.

FA Schedule: Statement of Foreign Assets and Revenue from any source outside of India.

Schedule 5A: Information on marital income sharing under the Portuguese Community Code

Schedule AL: Assets and Liabilities at year-end (applicable when revenue exceeds Rs 50 lakhs)

Schedule DI: Schedule of tax-saving investments or deposits or payments for extensions or extensions for the period extended from 1 April 2020 to 30 June 2020.

GST Schedule: Information about total profit/receipt reported through GST

Part B-TI: Calculation of Total Revenue.

Part B-TTI: Calculation of tax liability on gross income.


Instructions to be followed when completing Form ITR 3

The categories mentioned above will need to be referred to in the Form. But here is a list of important instructions to follow when completing Form ITR 3:

If the Schedule does not apply to the examiner, the examiner must automatically state -NA-

If there is no descriptive figure, talk about Nil.

If there is a negative balance and you write it against the profit column “-” the mark needs to be added before the calculation.

Clear the numbers to one nearby rupee.

The amount of revenue or losses payable should be shortened to the nearest recurrence of Rs.10.

Section A needs to be completed after 23 schedules will be completed in Part B, Finally, you need to verify the document.

How to submit an ITR 3 Form?

Form ITR 3 can be completed offline:

Offline: Refunds can be provided in paper format with a barcode refund.

Online: Refunds may be provided electronically using the Digital Signature Certificate. This data can be transferred after submitting a refund confirmation.

The examiner must have two copies of the ITR 3 Form when completing the forms online.

Electronic refunds can be filed if:

The inspector is a citizen of India or if the signing authority is located outside of India.

Examiners with a total income of more than Rs.5 lakh are required to provide a computerized return.

Examiners who wish to be exempt under Sections 90, 90A, 91 those of the FSI schedule and the applicable TR Schedule must complete the computerized returns.

Major Changes Made to Form ITR 3 of AY 2021-2022

The changes included in the ITR 3 Form are:

Step: 1 The recipient of the budget will be liable for the payment of taxes from 1 April 2020. The relevant sections such as Section 10 (34), 10 (35), 115-O are amended in the Act and as a result, appropriate changes are included in the ITR Form…

Step: 2 If a dividend is not available to taxpayers they are given a free payment of early tax debt. The ITR Form, therefore, allows taxpayers to submit quarterly income details so that interest under Section 234C is calculated as an error in prepayment.

Step: 3 With the amendment to Finance Bill 2021 in section 44AB the tax audit limit has been increased from Rs. 5 crores to Rs.10 crores if cash payments are less than 5 percent of total sales or profits. The corresponding amendment is attached to the ITR Form.

Step: 4 The DI schedule filed in AY 2020-2021 to claim deductions for investments or expenses incurred in the extended period (1st April 2020 to June 30, 2020) has been removed from the ITR Form AY 2021-2020.

Step: 5 Regulation 112A and Schedule 115AD (1) (b) (iii) are amended by an additional column to provide details of the type of collateral transferred as a result of income tax under Section 112A or Section 115 AD (1) (b) (iii) of the Income Tax Act. Schedules are also adjusted so that taxpayers can provide information on the sale price, fair market value, and securities acquisition costs.

Step: 6 Part A of the ITR 3 Form contains general adjustable information where the taxpayer is offered a choice of the best alternative tax system under Section 115 BAC.

Step: 7 An inspector who earns money by business or profession and selects another tax is required to specify the date for completing Form 10-IE and the approval number.

Frequently Asked Questions

The list of documents required for completing the ITR 3 balance is the Balance and Profit and Loss statement, bank account statement, and passbook.

No, ITR 3 will apply to all individuals or HUF with a business with a professional salary that can be taxed under the discretionary tax scheme.

Yes, ITR 3 fills in without researching and paying taxes on intraday profits.

Income Tax Return Form 3 is for all individuals and HUFs who have a low income or profits from a business or profession and who are not eligible to file an ITR 4 file must complete ITR 3.

Switching from ITR 3 to ITR 4 is not possible unless the sale is announced in 44AD. Also, if one is earning in two apartments you need to choose ITR3.

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