Documents Required

ITR 3

Easily setup a sole proprietorship with registrations, LEDGERS and business bank account.

Benefits

Offers and discounts

Save 18% with GST Registration

Get GST e-invoice with Input Tax Credit

Get Whatsapp Support

Chat with Us for Hassle-Free Tax Solutions!

Get Free Consultation

Get Free Consultation Before Action: Call or Meet Us in Person!

Easy ITR 3 Form Filing for the Taxpayers

The ITR 3 Form is designed for individuals and Hindu Undivided Families (HUFs) who derive income from business or profession. It is more comprehensive than ITR-1 and ITR-2, as it requires detailed financial information about the business. Moreover, it requires a thorough understanding of laws which can get easier by consulting a professional tax consultant.

How to File ITR 3? A 5-Step Process

Gather the required documents as filing the ITR 3 filing is a lengthy process.

Step 1:

Land on the Income Tax Department portal and log in by filling in the required details and the correct captcha.

Step 2:

Click ‘Income Tax Forms’ under the ‘e-File’ menu and select ITR Form 3.

Step 3:

Your personal and income details will be already filled, though you can make changes while filling out the form.

Step 4:

The ITR-3 Form contains 5 sections. The first section is regarding your general information, while the second section is about your income details. The third section is about the taxes paid and deductions you are eligible for. The fifth section lets you know about your TDS and TCS credit eligibility, while the sixth section contains verification and declaration.

Step 5:

Get the form digitally verified via digital signature, an Electronic Verification Code (EVC) or an Aadhaar OTP. You may verify the form manually by signing the ITR-V Form and sending it to the Income Tax Department via post within 120 days of filing the form on the portal. You will get a confirmation regarding the receipt of the form on your email ID that you mentioned on the portal.

Documents for ITR 3 Filing

Bank statements, Aadhaar card and PAN card
Form 26AS for details of TDS and TCS credits
Financial statements
Sales and purchase invoices
Stock valuation reports
Details of your bank account and investments
Form 16 (if you are salaried) or books of accounts (if you earn through a business)
Depreciation schedule
Your digital signature is mandatory if your account gets audited
TDS certificates
Investment proofs
Property documents
Audit reports
Loan documents
Professional fees receipts
Export-import documents
In the case of furnishing the audit report under specific sections, you must file the report a month before the ITR-3 Form filing deadline via the portal.

Who Can File ITR 3?

Chartered Accountants, lawyers, engineers, doctors, etc fall into this category. In general, you may fill out the ITR 3 Form if:

Your income source includes salary/pension, foreign assets, house property (single or multiple), capital gains and more.
You are a director of a company.
Your income is generated via foreign assets or you have multiple house properties.
You have invested in unlisted equity shares.
You get your income from the business source or profession (the PGBP category).
Business or proprietorship (audit and non-audit).
Your income is generated via racehorses, winning lotteries, and legal gambling methods, according to Indian law.
You earn via a business conducted by a HUF.

Who Cannot File ITR-3?

ITR-3 is only for HUFs and individuals.
1. Partners of a firm or company cannot file ITR-3.
2. If your income exceeds Rs. 50 lakhs, you must file ITR-4.
3. If you are eligible for ITR-1 filing, ITR 2 filing or ITR-4 filing, you cannot file ITR-3

Are You Still Confused with ITR-3 Filing? Relax! We Are Here to Help You

Final Words

The ITR-3 Form is specifically for those individuals and HUFs earning from a business or proprietorship. Similarly, those eligible for ITR-1, ITR-2 and ITR-4 cannot file it. It is a complex form and is time-consuming. So, do not procrastinate. Moreover, the form contains several sections, and filling it out is painstaking. Thus, a reliable tax consultant might help you out.

FAQs

What Is the Penalty for Late Filing of ITR-3?

Late filing of ITR-3 results in a penalty of up to Rs. 1,000 for total income not exceeding Rs. 5 lakhs. It also depends on your other income. So, a late filing fee might reach up to Rs. 10,000.

What Are the Schedules Under ITR-3?

Some schedules under ITR-3 are Schedule DEP (Depreciation on All Assets), Schedule DCG (Deemed Capital Gains), Schedule CFL (Losses to be Carried Forward), Schedule SI (Tax Chargeable at Special Rates) and more.

Do I Need a CA to File ITR-3?

You only need a CA to get your account books audited. However, reaching out to a tax consultant is recommended to make the process easier for you.

May I Claim HRA Exemption in ITR-3?

Yes, you may claim an HRA exemption in ITR 3 up to 50% depending on where you live (a metro city or a non-metro city).

How Do I Differentiate Between ITR-3 and ITR-4?

ITR 3 is for the HUFs and individuals earning from a proprietorship, business or profession. ITR 4 is for the HUFs and individuals getting benefited from the presumptive taxation scheme.