Returns have to be filed using the Income Tax Return of ITR Forms. If a taxpayer who is otherwise eligible to file returns fails to do so, penalties can be imposed. So it is important to file returns on time.
Who can file ITR?
As per the current law, income tax returns have to be filed mandatorily in the following circumstances:
- As an individual, the gross total income (prior to deductions under section 80C to 80U) exceeds Rs 2.5 lakhs in FY 2018-19. If you are a senior citizen (above 60 years and below 80 years), this limit is Rs 3 lakh. If you are above 80 years, the limit is Rs 5 lakhs. This is also applicable to NRIs. - As a company or a firm. The profit or loss during the financial year is immaterial. - If you want to claim an income tax refund; - For carrying forward a loss under a head of income - If you are a Resident individual and have an asset or financial interest in an entity located outside of India or have a signing authority for a foreign account.
- As a foreign company who wants to take treaty benefit on a transaction in India.
How to download Form ITR-3
As seen above, the eligibility to file ITR is based on the age (in case of individuals) and source of income. Form ITR-3 is to be filed by individuals and HUF who have income from profits and gains from business or profession. Return has to be filed even when such individuals have income from:
- House property, - Salary/Pension; and
- Income from other sources
Form ITR-3 is available on the Income Tax Department website. By following the steps below, you can download Form ITR-3 in a few minutes:
Step 1: Log on to https://www.incometaxindiaefiling.gov.in/home
Step 2: Under the Download tab, click “Offline Utilities”
Step 3: Click “Income Tax Return Preparation Utilities”
Step 4: Select your Assessment Year
Step 5: Click “Excel Utility” for filling the details by hand under ITR 3 column and download the file
Step 6: Extract the downloaded file and fill in the details
Also, any taxpayer who is not eligible to file Form ITR-1 (Sahaj), ITR-2 or ITR-4 (Sugam) will have to file Form ITR-3.
Dates for filing ITR-3 form
Duly completed Form ITR-3 should be submitted by 31st July. The form filed relates to taxes paid in the previous year. For example, if the income was earned anytime between April 1, 2018 and March 31, 2019, the assessment year for the same would be 2018-19. In this case, the ITR-3 Form needs to be submitted on or before 31st July, 2019.
It is important to file Form ITR-3 within the specified timelines. Post the deadline, tax returns can be as a “Belated Return” any time before 31st March, 2020. However, a penalty has to be paid.
If the tax returns are filed after the due date, a maximum penalty of Rs 10,000 will be imposed. If the return is filed after the due date but before December 31, a fine of Rs 5,000 shall be paid. If the return is filed after December 31, the fine would be Rs. 10,000. If your total income does not exceed Rs 5 lakh, the maximum amount of penalty to be paid is Rs. 1000.
It is advisable to file the return within the time specified.
Structure of ITR-3
The key sections for Form ITR-3 are set out as below: - Part A: General information and Nature of Business - Part A-BS: Balance Sheet as of March 31, 2018, of the Proprietary Business or Profession - Part A-P&L: Profit and Loss for the Financial Year 2018-19 - 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: Outline of the total income and tax computation in respect of income chargeable total tax. - Verification
- Tax Payments: Details of advance tax, TDS, self-assessment tax.
Along with these sections, there are a number of schedules to be filled. These schedules are: - 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: Computation of depreciation on plant and machinery under the Income-tax Act - Schedule DOA: Computation of depreciation on other assets under the Income-tax Act - Schedule DEP: Summary of depreciation on all the assets under the Income-tax Act - Schedule DCG: Computation of deemed capital gains on the sale of depreciable assets - Schedule ESR: Deduction under section 35 (expenditure on scientific research) - Schedule-CG: Computation of income under the head Capital gains. - Schedule-OS: Computation of income under the head Income from other sources. - Schedule-CYLA: Statement of income after set off of current year’s losses - Schedule BFLA: Statement of income after set off of unabsorbed loss brought forward from earlier years. - Schedule CFL: Statement of 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: Computation of deduction under section 10AA. - Schedule 80G: Statement of donations entitled for deduction under section 80G. - Schedule RA: Statement of donations to research associations etc. entitled for deduction under section 35(1)(ii) or 35(1)(iia) or 35(1)(iii) or 35(2AA) - Schedule- 80IA: Computation of deduction under section 80IA. - Schedule- 80IB: Computation of deduction under section 80IB. - Schedule- 80IC/ 80-IE: Computation of deduction under section 80IC/ 80-IE. - Schedule VIA: Statement of deductions (from total income) under Chapter VIA. - Schedule AMT: Computation of Alternate Minimum Tax Payable under Section 115JC - Schedule AMTC: Computation of tax credit under section 115JD - Schedule SPI: Statement of income arising to spouse/ minor child/ son’s wife or any other person or association of persons to be included in the income of the assessee in - Schedules-HP, BP, CG and OS. - Schedule SI: Statement of income which is chargeable to tax at special rates - Schedule-IF: Information regarding partnership firms in which assessee is a partner. - Schedule EI: Statement of Income not included in total income (exempt incomes) - Schedule PTI: Pass through income details from a business trust or investment fund as per section 115UA, 115UB - Schedule FSI: Details of income from outside India and tax relief - Schedule TR: Statement of tax relief claimed under section 90 or section 90A or section 91. - Schedule FA: Statement of Foreign Assets and income from any source outside India. - Schedule 5A: Information regarding apportionment of income between spouses governed by Portuguese Civil Code - Schedule AL: Asset and Liability at the end of the year(applicable where the total income exceeds Rs 50 lakhs)
- Schedule GST: Information regarding turnover/ Gross receipt reported for GST
Every individual or HUF whose total income before allowing deductions under Chapter VI-A of the IT Act, exceeds the maximum amount which is not chargeable to income tax is obligated to furnish his return of income. The claim of deduction(s) under Chapter VI-A is to be mentioned in Part C of this return form. The maximum amount which is not chargeable to income-tax for Assessment Year 2019-20, in case of different categories, is as under:| Category | Amount in INR |
| In case of an individual who is below the age of 60 years or a Hindu Undivided Family (HUF) | 2,50,000 |
| In case of an individual, being resident in India, who is of the age of 60 years or more at any time during the financial year 2018-19 but below the age of 80 years. | 3,00,000 |
| In case of an individual, being resident in India, who is of the age of 80 years or more at any time during the financial year 2018-19. | 5,00,000 |
How to fill Form ITR-3
The sections of the form are self explanatory. We have set out below general guidance on how to fill Form ITR-3:
For Part A, which requires personal information, provide all the details requested. You will also have to provide your Aadhar number.
For Part A-BS, you will have to provide the details of the balance sheet items as on 31st March, 2019, as per the given format, in respect of the proprietary business or profession carried out during the financial year 2018-19. The reported figures of the balance sheet should match with the audited balance sheet, in case the accounts were required to be audited. Any other activity which is not being accounted in the books of proprietary business or profession need not be included in this balance sheet.
For Part A- P&L, please provide the details of the profit and loss account for the financial year 2018-19 as per the given format. This is for proprietary business or profession carried out during the financial year 2018-19.
For Part A-QD, please provide quantitative details of trading and manufacturing account are required to be furnished in respect of principal items.
Schedule S requires the details of income from salary. Schedule HP requires various details regarding the income from House Property. Capital gains which arise from sale/transfer of different types of capital assets have to be provided in Schedule CG.
Income tax department has detailed guidance on how to fill the rest of the schedules available on their website. Make sure you check it out before you fill in those.
How to file ITR-3?
Form ITR-3 can be filed only electronically. The online filing can be done by:
- furnishing the return electronically under digital signature
- transmitting the data electronically and then submitting the verification of the return in Return Form ITR-V
If you submit your ITR-3 Form electronically under digital signature, the acknowledgement will be sent to your registered email id. You can also choose to download it manually from the income tax website. You are then required to sign it and send it to the Income Tax Department’s CPC office in Bangalore within 120 days of e-filing.
ITR-3 is an annexure-less form – no documents have to be attached to this form.
FAQs
What are the changes that have been introduced in Form ITR-3 in case of residents?
Residential status has been categorised into “Residential status in India (for Individuals)” and “Residential status in India (for HUF)”.
If the tax payer falls “Residential status in India (for Individuals)”, there are three sub-categories to choose from – “Resident”, “Resident but not Ordinarily Resident’ and “Non-resident”.
Taxpayers have to also mention the number of days of residency in India. In case of non-resident, an individual is also required to specify the jurisdiction(s) of residence during the previous year providing the Taxpayer Identification Number(s) of the relevant jurisdictions. In case the individual is a Citizen of India or a Person of Indian Origin (PIO), the duration of stay in India during the previous year (in days) and the duration of stay in India during the 4 preceding years (in days) must be mentioned.
