What is the ITR-3 Form?
The ITR 3 applies to every individual and Hindu Undivided Family (HUF) with an income from a proprietary business or carrying on a profession such as architecture, accountancy, engineering, medicine, etc.
ITR 3 may also comprise income from house property, salary/pension and other sources and is one of the detailed ITR forms in which the person filing the return must give full particulars of his profit and loss during the period and the assets and liabilities as of the year ending date.
Who is eligible for ITR-3?
Income from a profession or business under a proprietorship firm, wherein the taxpayer is a proprietor
Who is Not Eligible to File the ITR-3 Form?
When an Individual/HUF earns income other than income from business/profession, he/she cannot file ITR-3 as this ITR (Income Tax Return) primarily focuses on income from business/professions.
Changes in ITR-3 for AY 2023-24
AY 2023-24 has brought about several key changes in ITR-3 such as:
- An assessee should always disclose the following information when filing returns:
- Cash deposits of more than ₹1 crore in the current account with any bank
- Expenditure of more than ₹2,00,000 incurred by the individual on foreign travels
- If the taxpayer incurs ₹1,00,000 or more on electricity charges
- If the individual earns short or long-term capital gains by selling or building and/or land, he/she needs to produce the details about the same.
- These details include a taxpayer’s PAN or Aadhaar, residential address, and percentage share of ownership.
- If a taxpayer has the position of a company’s director, and/or has unlisted equity investment.
How to file for returns with an ITR-3 form?
ITR-3 filing online is compulsory and can file an ITR-3 online using the following instructions:
- One must visit the official e-filing web portal of the Income Tax Department for the ITR-3 online filing process.
- Log in to this portal by entering your user ID (PAN), password, and other required details If you are a new user, you need to first register an account with the portal.
- Select ‘e-File’ on the menu and click on ‘Income Tax Return’ from the drop-down menu.
- This page auto-populates your PAN details. Next, select ‘Assessment Year’ for which you are filing the ITR. Then, select ‘ITR Form Number’ and opt for ‘ITR-3’.
- Choose ‘Filing Type’ as ‘Original’ and if you want to file a revised return against a previously filed return, then you need to select ‘Revised Return.’
- Find option ‘Submission Mode,’ select ‘Prepare and Submit Online’ and then click on Continue, to continue to the next page.
- At this point, you are required to provide details of income, exemptions, deductions, and investments. Then, add the tax payment details by TDS, TCS, and/or advance tax.
- Remember to fill in all data carefully and accurately. Additionally, click on ‘Save the Draft’ to avoid losing data.
Select the preferred verification option:
- Instant e-verification
- E-verification later but within 120 days from the date of filing ITR-3
- Verification through a duly signed ITR-V sent to CPC (Centralized Processing Centre) via post and within 120 days of filing a return
- Select ‘Preview and Submit’, and ‘Submit.’
This is the detailed procedure regarding how to file ITR-3 online.
ITR-3 filing offline is only possible for select taxpayers. This includes people aged 80 years or older and individuals with an income of less than ₹5 lakhs.
Also, these taxpayers should not have any tax refund requests if they want to file this form offline.
Filing ITR-3 Offline
To file ITR-3 offline, visit the income tax e-filing website and follow these steps
- On the home page, click “Downloads”
- Then, click on “Income tax Returns,” select the corresponding AY and then select “Common Offline Utility (ITR-1 to ITR-4). Immediately, JSON utility starts downloading.
- Unzip the utility and select the downloaded JSON Utility
- Select “File return”. You can import the prefilled JSON data or import the saved JSON draft
- Enter PAN details, the AY and then click on “Proceed”
- Click on “File return”, select the Applicable Status (Individual / HUF / Others) and click “Continue”
- Choose the required ITR and proceed with the ITR
- Click “Get Started with Filing of the Return”, enter the required information and confirm for each page
- Download the JSON for uploading
- Next, go to “e-File”, select “Income Tax Return” and click on “File Income Tax Return”
Select the assessment year, the filing mode as ‘Offline (Using HTML Utility)’ and click on “Continue.”
Browse and attach the generated JSON Utility.