Income Tax Return - Form ITR-3
For Individuals & HUFs with Income from Business or Profession
ITR-3 Overview
ITR-3 is applicable to individuals and Hindu Undivided Families (HUFs) who have income from profits and gains of a business or profession . This form is also used by individuals and HUFs who are partners in a firm , earning income such as interest, salary, bonus, or commission from the partnership. It is specifically suitable for professionals working within a partnership structure.
Eligibility and Scope of ITR-3
Who Must File ITR-3
- Individuals and HUFs having income from Profits and Gains of a Business or Profession (as a Proprietor).
- Individuals and HUFs registered as a 'Partner' in a firm, receiving income like salary, interest, bonus, commission, etc.
- The return can include income from all other sources, including House Property, Salary/Pension, Capital Gains, and Other Sources.
- Applicable for both Tax Audit and Non-Tax Audit cases.
Structure of ITR-3 Form (Assessment Year 2024-25)
Part A: Accounts & General Information
- Part A-GEN: General information and Nature of Business.
- Part A-BS: Balance Sheet as of March 31, 2024, of the Proprietary Business or Profession.
- Part A- Manufacturing Account: Manufacturing Account for the financial year 2023-24.
- Part A- Trading Account: Trading Account for the financial year 2023-24.
- Part A-P&L: Profit and Loss for the financial Year 2023-24.
- 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: Computation & Verification
- Part B-TI: Computation of Total Income.
- Part B-TTI: Computation of Tax Liability on Total Income.
- Verification: Declaration and final sign-off.
Key Schedules for ITR-3
- 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: Depreciation on Plant & Machinery under the Income-tax Act.
- Schedule DOA: Depreciation on other assets under the Income-tax Act.
- Schedule DEP: Summary of depreciation on all assets under the Income-tax Act.
- Schedule DCG: Deemed capital gains on sale of depreciable assets.
- Schedule ESR: Deduction under section 35 (scientific research expenditure).
- Schedule-CG: Computation of income under the head Capital Gains.
- Schedule 112A: Capital Gains where section 112A is applicable.
- Schedule 115AD(1)(b)(iii) Proviso: Capital Gains for Non-Residents where section 112A is applicable.
- Schedule OS: Income under the head “Other Sources”.
- Schedule CYLA-BFLA: Set-off of current year losses & unabsorbed losses from earlier years.
- Schedule CYLA: Set-off of current year’s losses.
- Schedule BFLA: Set-off of brought-forward unabsorbed losses.
- Schedule CFL: 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: Deduction under section 10AA.
- Schedule 80G: Donations eligible under section 80G.
- Schedule RA: Donations to research associations eligible under sections 35(1)(ii)/(iia)/(iii)/(2AA).
- Schedule 80IA: Deduction under section 80IA.
- Schedule 80IB: Deduction under section 80IB.
- Schedule 80IC / 80IE: Deductions under sections 80IC and 80IE.
- Schedule VI-A: Deductions under Chapter VI-A.
- Schedule AMT: Alternate Minimum Tax payable under Section 115JC.
- Schedule AMTC: Tax credit under section 115JD.
- Schedule SPI: Income arising to spouse/minor child/others to be clubbed.
- Schedule SI: Income chargeable at special tax rates.
- Schedule IF: Details of partnership firms where assessee is a partner.
- Schedule EI: Exempt income (not included in total income).
- Schedule PTI: Pass-through income from business trusts or investment funds.
- Schedule TPSA: Secondary adjustment to transfer price under section 92CE(2A).
- Schedule FSI: Income from outside India and tax relief details.
- Schedule TR: Tax relief claimed under sections 90, 90A, or 91.
- Schedule FA: Foreign assets and income from outside India.
- Schedule 5A: Apportionment of income between spouses (Portuguese Civil Code).
- Schedule AL: Assets & liabilities (for income above ₹50 lakhs).
- Schedule GST: Turnover/Gross receipts reported for GST.
Simple & Transparent Pricing for Income Tax Return 3
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Basic Plan
- Income tax return filing for a taxpayer with taxable income of less than Rs.10 Lakhs.
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- Income tax return filing for a taxpayer with taxable income of Rs.10 Lakhs to 20 Lakhs.
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- Income tax return filing for a taxpayer with taxable income of Rs 20 Lakhs to 30 Lakhs.
FAQ's on Income Tax Return - ITR 3
Your Questions Answered
Who is eligible to file ITR-3?
ITR-3 is for Individuals and Hindu Undivided Families (HUFs) who have income under the head "Profits or Gains of Business or Profession". This includes sole proprietors, freelancers/professionals, and partners in a firm (receiving salary, interest, etc.).
What are the primary sources of income reported in ITR-3?
It must report income from Business or Profession (including speculation and non-speculation business). It also accommodates income from all other heads: Salary/Pension, House Property (multiple properties), Capital Gains, and Other Sources (interest, dividends, lottery, etc.).
Can ITR-3 be used if I have Capital Gains?
Yes. ITR-3 is mandatory for individuals with Capital Gains who also have income from a business or profession. This includes gains from stocks, mutual funds, or property, and requires detailed reporting in Schedule CG.
Who cannot file ITR-3?
You cannot file ITR-3 if you: are a company, LLP, or firm (they use ITR-5/ITR-6); or if you are an individual eligible for the Presumptive Taxation Scheme (Sec 44AD/44ADA/44AE) and choose to file ITR-4 (Sugam).
Is it mandatory to maintain books of accounts for ITR-3?
Generally, yes. ITR-3 requires the disclosure of the Balance Sheet (Part A-BS) and Profit & Loss Account (Part A-P&L). This implies that the taxpayer must maintain detailed books of accounts unless specifically exempt.
What is the difference between ITR-3 and ITR-4?
ITR-4 is for individuals who opt for the Presumptive Taxation Scheme (declaring income as a fixed percentage of turnover/receipts). ITR-3 is for those with business income who do not opt for or are ineligible for the presumptive scheme and maintain full books of accounts.
When is the due date for filing ITR-3?
The due date depends on whether a tax audit is required. If no audit is required (non-audit cases), the due date is typically July 31st. If an audit is required (under Section 44AB), the due date is typically October 31st (always check the latest Circulars for extensions).
Is it mandatory to report Foreign Assets in ITR-3?
Yes. If you are a Resident Indian and hold any foreign assets, foreign bank accounts, or have signing authority in any account outside India, you must fill out Schedule FA (Foreign Assets and Income) in ITR-3.
