ITR 3 Form for Financial Year 2024-25 in

Introduction

The ITR-3 form is intended for individuals and Hindu Undivided Families (HUFs) involved in business or profession, who are required to maintain detailed financial records. This includes professionals like chartered accountants, doctors, lawyers, engineers, and others whose income is determined based on actual profits. Additionally, those earning from salaried jobs alongside other income streams such as freelancing or part-time business ventures can also use the ITR 3 form to file their tax returns. In this article, you will get complete detail related to ITR 3 filing in for FY 2024-25 & AY 2025-26.

What is ITR-3?

The ITR-3 form is meant for individuals and Hindu Undivided Families (HUFs) earning income from business or professional profits and gains. It can be considered a comprehensive form, as it allows individuals or HUFs to report all types of potential income in a single return.

Eligibility Criteria to file the ITR-3 Form in

Following is the eligibility criteria for ITR 3 Filing in :

• Engaging in a business or profession (both tax audit and non-audit cases)
• The return can include income from house property, salary/pension, capital gains, and other sources of income.
• Remuneration earned from a partnership firm.

Who cannot file the ITR-3 Form?

Only individuals and Hindu Undivided Families (HUFs) are eligible to file the ITR-3 Form. Therefore, any person other than HUF and individuals are not eligible to file ITR 3.

Individuals and HUFs who do not have income from business or profession, or from a partnership firm, are not eligible to file the ITR-3 Form.

Deadline for ITR3 Form Filing in

Due date to file ITR-3 depends upon Audit:

What is the Turnover Limit for Businesses for Tax Audit u/s 44AB?

Businesses are required to furnish audit reports by 1 month before the due date of filing income tax return u/s 139(1). Limit for income Tax Audit applicable to businesses are given below:

How to File ITR-3: Steps for e-Filing Your ITR-3 in

Filing ITR 3 is a straightforward process. The form can be filed online through the official Income Tax Department's website or by using other tax filing portals. Here's a step-by-step guide to filing ITR 3:

Step 1: Collect Necessary Documents

Before you begin filing, ensure you have the following documents ready:

• PAN card: Permanent Account Number (PAN) is mandatory for filing ITR.
• Income details: Salary slips, business income records, and other supporting income proofs.
• Form 16 or 16A: For salaried employees, this form gives detailed income and tax details.
• Bank details: Ensure your bank account details are correct for receiving any refunds.
• Proof of deductions: Documents related to deductions under 80C, 80D, etc.

Step 2: Register/Login on the Income Tax Portal

Visit the official Income Tax Department portal (https://www.incometax.gov.in/IEC/foportal) and create an account if you don’t have one. If you already have an account, simply log in using your credentials.

Step 3: Download the ITR 3 Form

Once logged in, navigate to the “Download” section under e-filing and download the ITR 3 form. You can also opt for online filing, which will allow you to fill out the form directly.

Step 4: Fill in the Form

• Personal Information: Enter your personal details like PAN, name, address, etc.
• Income Details: Add your income from business/profession, salary, and other sources. Ensure all incomes are reported accurately.
• Deductions: Include all eligible deductions you are claiming under sections like 80C, 80D, etc.
• Tax Paid: Enter details about advance tax or TDS (tax deducted at source) if applicable.

Step 5: Validate and Submit

After filling out the form, verify all the details thoroughly. Once you’re sure that everything is correct, submit the form. If filing online, make sure to use the "e-verify" option to authenticate your filing using your Aadhaar number, net banking, or other available options.

Step 6: E-Verify the ITR

Once the form is submitted, you must verify it. You can e-verify the form using one of the following methods:

• Aadhaar OTP
• Net banking
• Bank account number or Demat account number
• Physical verification (if needed)

Step 7: Acknowledgment

After successful submission, you will receive an acknowledgment of your filed ITR. If you are eligible for a tax refund, it will be processed after your ITR is successfully verified.

How is ITR-3 Form Structured for AY 2023-24 and AY 2024-25?

ITR-3 is divided into the following sections

1. Part A

• Part A-GEN: General Information and Nature of Business
• Part A-BS: Balance Sheet as of March 31, 2021, for Proprietary Business or Profession
• Part A-Manufacturing Account: Manufacturing Account for the financial year 2020-21
• Part A-Trading Account: Trading Account for the financial year 2020-21
• Part A-P&L: Profit and Loss Account for the financial year 2020-21
• Part A-OI: Other Information (optional if not liable for audit under Section 44AB)
• Part A-QD: Quantitative Details (optional if not liable for audit under Section 44AB)

Following this, the form includes the following schedules:

• 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 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 112A: Details of Capital Gains where section 112A is applicable
• Schedule 115AD(1)(b)(iii) Proviso: For Non-Residents, details of Capital Gains where section 112A is applicable
• Schedule-OS: Computation of income under the head Income from Other Sources
• Schedule-CYLA-BFLA: Statement of income after set off of current year’s losses and unabsorbed losses brought forward from earlier years
• Schedule-CYLA: Statement of income after set off of current year’s losses
• Schedule BFLA: Statement of income after set off of unabsorbed losses 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 entitled for deduction under section 35
• Schedule-80 IA: 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 VI-A: 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 others to be included in the income of the assessee
• Schedule SI: Statement of income chargeable to tax at special rates
• Schedule-IF: Information regarding partnership firms in which the 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 sections 115UA, 115UB
• Schedule TPSA: Secondary adjustment to transfer pricing as per section 92CE(2A)
• Schedule FSI: Details of income from outside India and tax relief
• Schedule TR: Statement of tax relief claimed under sections 90, 90A, or 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 the Portuguese Civil Code
• Schedule AL: Asset and Liability at the end of the year (applicable if total income exceeds Rs 50 lakhs)
• Schedule Tax Deferred on ESOP: Information on tax-deferred on ESOPs received from eligible start-ups referred to in Section 80-IAC
• Schedule GST: Information regarding turnover/Gross receipts reported for GST
• Part B-TI: Computation of Total Income
• Part B-TTI: Computation of tax liability on total income
• Verification

How to File Your ITR-3 Form?

A taxpayer is required to file the ITR-3 form online. The ITR-3 can be filed electronically in the following ways:

• By submitting the return electronically with a digital signature.
• By transmitting the data electronically and then submitting the verification of the return using Form ITR-V.

If you file your ITR-3 electronically with a digital signature, an acknowledgement will be sent to your registered email ID. Alternatively, you can manually download the acknowledgment from the income tax website. After downloading, sign the acknowledgement and send it to the Income Tax Department's CPC office in Bangalore within 120 days of e-filing.

It is important to note that ITR-3 is an annexure-less form, meaning you do not need to attach any supporting documents when submitting it.

How to Complete Document Verification?

When completing the income tax return, taxpayers must also provide the necessary verification. It is important to note that anyone who submits a false statement in the return or any of its associated schedules may be subject to prosecution under Section 277 of the Income Tax Act, 1961. If convicted, the individual can face rigorous imprisonment and a fine as penalties under this section.

Key Changes in the ITR-3 Form for AY 2023-24 and AY 2024-25

The following changes have been incorporated in the ITR-3 form for FY 2022-23, which will also apply for FY 2023-24:

• A new schedule, VDA, has been added to separately report income from crypto and other Virtual Digital Assets (VDAs). If you categorize income from VDAs as capital gains, a quarterly breakup must be provided in the Capital Gains Schedule. Every VDA transaction must be reported, including details of the sale and purchase dates.
• New questions have been included to determine if you opted out of the New Tax Regime in previous years.
• Foreign Institutional Investors (FII/FPI) are now required to provide their SEBI registration number as part of additional disclosure requirements.
• A minor change has been made in balance sheet reporting. Advances received from individuals specified under Section 40A(2)(b) of the Income Tax Act and others must be disclosed under the 'Advances' section in the Source of Funds.
• Turnover and income from intraday trading must now be reported under the newly introduced 'Trading Account' section.

Why Bizfoc?

Bizfoc is one of the leading brands along with a professional and experienced team in the field of ITR filing. We provide a seamless process for ITR filing to our clients. We make sure to file everything accurately and in a minimal time period. We guide you at each and every step related to your filings and new ITR updates.

Conclusion

Filing ITR 3 in is crucial for individuals and HUFs who have income from business, profession, or other sources. By understanding the form and the filing process, taxpayers can ensure they comply with tax laws and avoid penalties. Always ensure accuracy and complete documentation to make the filing process seamless and to minimize the chances of errors.

Frequently Asked Questions