ITR 3 Form Filing in Delhi

ITR 3 Form Filing in Delhi

The Income Tax Department has made different forms for filing income tax, including ITR-3, which is specifically for Individuals and Hindu Undivided Family (HUFs). Those individuals and HUFs who engage in profession and business and are also crucial to maintaining the book of accounts are required to file ITR-3. In this article, we will provide you with complete insights on how to file ITR-3 AY 2025-26 and the required documents, eligibility, and deadline to file ITR-3.

What is ITR 3?

ITR-3 is a form for filing the income tax that falls under the category of individuals and Hindu Undivided Family (HUFs) who earn profits or earn from profession or business. It also includes income sources like salary or pension, house property, capital gains, etc.

Eligibility Criteria to file the ITR-3 Form in Delhi

The eligibility criteria for filing ITR-3 in Delhi are as follows:

• Engaging in a business or profession (both in cases requiring tax audit and those not requiring it).
• 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 a partnership firm, are not eligible to file the ITR-3 Form.

Deadline for ITR3 Form Filing in Delhi

The due date for filing ITR-3 depends on whether the books of accounts are required to be audited:

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). The limit for income Tax Audit applicable to businesses is given below:

1. General Limit: Turnover / Gross Receipts exceeds ₹1 crore.

2. Special Limit In the case of business, the Turnover Limit shall be ₹10 crores instead of ₹1 Crore if:

• Cash Receipts out of total receipts is up to 5% during the previous year, and
• Cash Payments out of total payments is up to 5% during the previous year.

Note: Cheques / Demand drafts which are not “Account payee”, shall be treated as cash.

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

Filing ITR 3 is a relatively simple process if done correctly. 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: Visit the Income Tax Portal: To file an ITR-3, it is important to visit the income tax portal https://www.incometaxindiaefiling.gov.in/home.

Step 2: Select Income Tax Preparation Utilities: On visiting the above link, click the 'Download' tab and select 'Offline Utilities. The next step is to select the Income Tax Preparation Utilities.

Step 3: Select Excel Utility under the ITR-3 Column: After clicking on the Income Tax Preparation Utilities, you need to select the relevant Assessment Year (year in which any previous year's revenue is assessed to file the ITR). Then click on Excel Utility under ITR-3 Column if you want to fill in the details hand by hand.

Step 4: Download the File: To follow all the previous, you just need to download the file that reflects the ITR-3 of the concerned Assessment Year.

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

ITR-3 is organized into the following sections:

• 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 2022-23
• Part A-P&L: Profit and Loss Account for the financial year 2022-23
• 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

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 acknowledgment 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. Any person submitting false statements in the return or its associated schedules may face 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, Virtual Digital Assets (VDAs), 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 accounting firms and has 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 every step related to your filings and new ITR updates.

Conclusion

Filing ITR-3 in Delhi is crucial for individuals and HUFs who have income from business, profession, or other taxable 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 minimize the chances of errors.

Frequently Asked Questions? (FAQs)