How to file form ITR-3 on Income Tax Portal?

Last Updated at: January 07, 2020
201
How to file form ITR-3 on Income Tax Portal?

Income tax filing always seems a problem and tedious task to a number of individuals. But, if carried out according to the procedure and legal way, it can be an easy, sorted-out process. The Income Tax form filing has been divided into several categories and the individuals need to file the forms according to the category they fall in. One of the categories is the ITR form 3.

Let’s take a detailed look about it. 

  • What is ITR-3 
  • Who can file ITR-3?
  • What is the structure of ITR-3 form? 
  • How to download the form?
  • How to file ITR-3 online and offline?
  • Seven major changes in ITR-3 for AY 2019-20

What is ITR-3?

The ITR 3 is an income tax return that needs to be filed by the individuals and Hindu Undivided Families (HUF) who get their incomes/profits from their business or professions.

Who is eligible to file ITR-3?

The people who are eligible to file ITR 3 form must have any of the following sources of income:

  •   Salary/pension income
  •   Income from property
  •   The taxpayers who have a turnover of more than 2 crores and are registered under the presumptive taxation scheme.

Note: Under the Presumptive taxation scheme, a person can declare income at a prescribed rate and in turn is relieved from maintaining his books of accounts. In order to give relief to small taxpayers from the tedious work of filing taxes, the Income-tax Act has framed the presumptive taxation scheme under sections 44AD, sections 44ADA, sections 44AE. Section 44BB and Section 44BBB 

    •   Income from partnership firms or business. The individuals or HUF who are partners in a business or firm but do not carry out business activities under proprietorship are also included.

File Your Income Tax Now

What is the structure of ITR-3 Form for AY 2019-20?

The structure of the ITR 3 form is divided into the following parts:

Part-A:

 Part A-GEN: General Information about the taxpayers and the nature of the business. For example, business name, business code, business description, name, residential address, etc. 

 Part A-BS: Balance sheet containing information about the business and the profession. Taxpayers must fill the details of the Balance Sheet items as of 31 March 2019. The reported figures of the balance sheet should match with the audited balance sheet, in case the accounts were required to be audited.

○  Part A – Trading Account: All the details of the sales & gross receipts, taxes, cess, duties, etc. for the FY 2018-19 must be reported.

 Part A- Manufacturing Account: Manufacturing account details like inventory, purchases, direct wages, etc for the year 2018-19 should be recorded. 

 Part A-P&L: It contains the profit and loss statements regarding the business of the financial  year

 Part A-OI: Contains the Other Information if not liable for auditing under Section 44AB

 Part A-QD: Contains the quantitative details 44AB

Part-B:

It contains the outline of the total income along with the computation of the taxes on the net income

After this, there are a number of schedules that need to be considered like:

  • Schedule S: Details of the income from salary
  • Schedule HP: Details of income from house property
  • Schedule BP: Computation of income from business or profession.
  • Schedule DPM: Computation of depreciation under the IT Act. Depreciation on plant and machinery
  • Schedule DOA: Computation of depreciation on assets like land, building, furniture, and intangible assets
  • Schedule DEP: Details of depreciation on all category of assets – machinery, plant, land, and intangible assets
  • Schedule DCG: Summary of short-term capital gains on the sale of depreciable assets during the year

Some of the other schedules include income from other sources like rental income from machinery; winning from lotteries; cash credits; details of donations under Section 80G; details of donations to research associations; etc. 

Also, deductions, computation of tax credits, income chargeable to tax at special rates, details of income from foreign assets and other sources are also included in different schedules. 

Tax payments

Contain the details of the Advanced tax, TDS and self-assessment tax

Verification

How to download the form?

The taxpayers can download the ITR 3 form from the official website of the Income Tax Department for free.

How to file ITR-3 online and offline?

Filing ITR 3 form Online 

With the convenience of everything happening online, even the ITR 3 form can also be filed online on the e-filing portal of the income tax department of India.

Along with this, the return can be filed online and the verifications are done using the digital signature. Verification can also be done by sending the duly signed hardcopy of the acknowledgement by post. If the assessee is required to file the reports under Sections 10AA, 44AB, 50B, 44DA, 80 -IA, 80-IB, 80-IC, 80-ID, 80JJAA, 80LA, 92E, 115JB or 115JC he/she can do it electronically. 

The taxpayers will receive the digital receipt on their registered email. Also, one does not have to attach any specific documents while filing the form. 

Filing ITR 3 Offline

The taxpayers who belong to any one of the categories are eligible to fill the form offline:

  • Individuals above the age of 80.
  • Individuals having an income below 5 lacs, and who do not have any request for income tax return.

Seven major changes in ITR-3 for AY 2019-20

The field for residential status has been changed into three other sub-categories which are ‘resident’, ‘resident by not ordinarily resident’, and ‘non-resident’.

  • An individual taxpayer has to provide all the details regarding any previous dictatorships held in any other company, along with listing the shares.
  • An individual taxpayer who is a partner in another firm will have to disclose the name and PAN details of the partner firm they are working with.
  • Partners of the partnership firms will have to file their returns in ITR 3 as against ITR 2.
  • The taxpayers have to provide the details of the exempted allowances and the deductions provided from the salary.
  • In the case of schedule OS, the taxpayer has to provide the details of any other income which is chargeable at a special rate. Along with this, detailed and correct information has to be provided about income from other sources.
  • In Schedule GST, information regarding the turnover/GST has to be provided by the individuals.

Structure of the ITR form 3 for the AY 2018-19

  • It is mandatory to mention the Aadhar Number.
  • It is mandatory to mention the value of assets and liabilities owned by the individual when the income is above 50 lacs.
  • The unexplained and dividend income must be disclosed.
  • All the details related to GST must be disclosed.
  • In the case of the depreciation in all the schedules related to depreciation, there is a limitation of a maximum of 40%.
  • The partners of the partnership firms will have to file ITR 3 against ITR 2.

Filling of the documents for verification

While filling the data of income tax return, and the information in the ITR 3 form, all the information entered must be correct and accurate, and it is also mandatory for the taxpayer to fill up the verification along with filing the income tax returns. 

Conclusion

Any individual making a false statement or caught up doing wrong actions while filing the return or any of the schedules shall be liable and can be prosecuted under the Section-277 of the Income Tax Act made in the year 1961.

The individual will be punishable for both imprisonment and fine and may have to face further consequences.

How to file form ITR-3 on Income Tax Portal?

201

Income tax filing always seems a problem and tedious task to a number of individuals. But, if carried out according to the procedure and legal way, it can be an easy, sorted-out process. The Income Tax form filing has been divided into several categories and the individuals need to file the forms according to the category they fall in. One of the categories is the ITR form 3.

Let’s take a detailed look about it. 

  • What is ITR-3 
  • Who can file ITR-3?
  • What is the structure of ITR-3 form? 
  • How to download the form?
  • How to file ITR-3 online and offline?
  • Seven major changes in ITR-3 for AY 2019-20

What is ITR-3?

The ITR 3 is an income tax return that needs to be filed by the individuals and Hindu Undivided Families (HUF) who get their incomes/profits from their business or professions.

Who is eligible to file ITR-3?

The people who are eligible to file ITR 3 form must have any of the following sources of income:

  •   Salary/pension income
  •   Income from property
  •   The taxpayers who have a turnover of more than 2 crores and are registered under the presumptive taxation scheme.

Note: Under the Presumptive taxation scheme, a person can declare income at a prescribed rate and in turn is relieved from maintaining his books of accounts. In order to give relief to small taxpayers from the tedious work of filing taxes, the Income-tax Act has framed the presumptive taxation scheme under sections 44AD, sections 44ADA, sections 44AE. Section 44BB and Section 44BBB 

    •   Income from partnership firms or business. The individuals or HUF who are partners in a business or firm but do not carry out business activities under proprietorship are also included.

File Your Income Tax Now

What is the structure of ITR-3 Form for AY 2019-20?

The structure of the ITR 3 form is divided into the following parts:

Part-A:

 Part A-GEN: General Information about the taxpayers and the nature of the business. For example, business name, business code, business description, name, residential address, etc. 

 Part A-BS: Balance sheet containing information about the business and the profession. Taxpayers must fill the details of the Balance Sheet items as of 31 March 2019. The reported figures of the balance sheet should match with the audited balance sheet, in case the accounts were required to be audited.

○  Part A – Trading Account: All the details of the sales & gross receipts, taxes, cess, duties, etc. for the FY 2018-19 must be reported.

 Part A- Manufacturing Account: Manufacturing account details like inventory, purchases, direct wages, etc for the year 2018-19 should be recorded. 

 Part A-P&L: It contains the profit and loss statements regarding the business of the financial  year

 Part A-OI: Contains the Other Information if not liable for auditing under Section 44AB

 Part A-QD: Contains the quantitative details 44AB

Part-B:

It contains the outline of the total income along with the computation of the taxes on the net income

After this, there are a number of schedules that need to be considered like:

  • Schedule S: Details of the income from salary
  • Schedule HP: Details of income from house property
  • Schedule BP: Computation of income from business or profession.
  • Schedule DPM: Computation of depreciation under the IT Act. Depreciation on plant and machinery
  • Schedule DOA: Computation of depreciation on assets like land, building, furniture, and intangible assets
  • Schedule DEP: Details of depreciation on all category of assets – machinery, plant, land, and intangible assets
  • Schedule DCG: Summary of short-term capital gains on the sale of depreciable assets during the year

Some of the other schedules include income from other sources like rental income from machinery; winning from lotteries; cash credits; details of donations under Section 80G; details of donations to research associations; etc. 

Also, deductions, computation of tax credits, income chargeable to tax at special rates, details of income from foreign assets and other sources are also included in different schedules. 

Tax payments

Contain the details of the Advanced tax, TDS and self-assessment tax

Verification

How to download the form?

The taxpayers can download the ITR 3 form from the official website of the Income Tax Department for free.

How to file ITR-3 online and offline?

Filing ITR 3 form Online 

With the convenience of everything happening online, even the ITR 3 form can also be filed online on the e-filing portal of the income tax department of India.

Along with this, the return can be filed online and the verifications are done using the digital signature. Verification can also be done by sending the duly signed hardcopy of the acknowledgement by post. If the assessee is required to file the reports under Sections 10AA, 44AB, 50B, 44DA, 80 -IA, 80-IB, 80-IC, 80-ID, 80JJAA, 80LA, 92E, 115JB or 115JC he/she can do it electronically. 

The taxpayers will receive the digital receipt on their registered email. Also, one does not have to attach any specific documents while filing the form. 

Filing ITR 3 Offline

The taxpayers who belong to any one of the categories are eligible to fill the form offline:

  • Individuals above the age of 80.
  • Individuals having an income below 5 lacs, and who do not have any request for income tax return.

Seven major changes in ITR-3 for AY 2019-20

The field for residential status has been changed into three other sub-categories which are ‘resident’, ‘resident by not ordinarily resident’, and ‘non-resident’.

  • An individual taxpayer has to provide all the details regarding any previous dictatorships held in any other company, along with listing the shares.
  • An individual taxpayer who is a partner in another firm will have to disclose the name and PAN details of the partner firm they are working with.
  • Partners of the partnership firms will have to file their returns in ITR 3 as against ITR 2.
  • The taxpayers have to provide the details of the exempted allowances and the deductions provided from the salary.
  • In the case of schedule OS, the taxpayer has to provide the details of any other income which is chargeable at a special rate. Along with this, detailed and correct information has to be provided about income from other sources.
  • In Schedule GST, information regarding the turnover/GST has to be provided by the individuals.

Structure of the ITR form 3 for the AY 2018-19

  • It is mandatory to mention the Aadhar Number.
  • It is mandatory to mention the value of assets and liabilities owned by the individual when the income is above 50 lacs.
  • The unexplained and dividend income must be disclosed.
  • All the details related to GST must be disclosed.
  • In the case of the depreciation in all the schedules related to depreciation, there is a limitation of a maximum of 40%.
  • The partners of the partnership firms will have to file ITR 3 against ITR 2.

Filling of the documents for verification

While filling the data of income tax return, and the information in the ITR 3 form, all the information entered must be correct and accurate, and it is also mandatory for the taxpayer to fill up the verification along with filing the income tax returns. 

Conclusion

Any individual making a false statement or caught up doing wrong actions while filing the return or any of the schedules shall be liable and can be prosecuted under the Section-277 of the Income Tax Act made in the year 1961.

The individual will be punishable for both imprisonment and fine and may have to face further consequences.

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