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Income Tax Return Form-3

ITR-3 form online filing step by step guide

Jun 10, 2022

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ITR 3 Form

As to cater for people from all the sectors Income Tax department of India has categorised its citizens and has introduced 7 types of Income Tax Return forms. Among the seven types, ITR 3 is one of them.

The various aspects related to ITR 3 such as eligibility criteria, the form, and other information related to filing are discussed in this article.

Eligibility Criteria to file ITR 3  

It is for those individuals who earn income from a proprietary business or are practising the profession. But for Hindu Undivided Families given the same situation, one has to file an ITR 2 form instead of an ITR 3. Some of the listed criteria for filing are as follows:

  1. When one earns income from Proprietary Business
  2. When one earns by carrying out a profession
  3. When one earns from House property
  4. When one’s income is chargeable under a tax due to profit or gain made in the business by the means of interest, salary, bonus or other remuneration.

(ITR-3 is also needed to be filed by a person whose income is chargeable to tax under “profits and gains of business or profession” in the nature of, interest, salary, bonus, commission or remuneration.)

Who cannot file ITR-3

Any individual or Hindu Undivided Family who is earning while being one of the partners in the partnership firm (runs a business or practices his/her profession). In this case, one has to file ITR 2 form.

ITR Form 3 Filing Mode

There are three methods to file ITR 3. They are-

  1. By filing returns electronically via digital signature format.
  2. By electronic verification code.
  3. Via Return Form ITR-V to Income Tax Office by mail. The acknowledgement section of this section must be complete.
  4. By transmitting the data in ITR-3 form electronically followed by the submission of return verification in.
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Major Changes Introduced in ITR 3 in the annual year 2021-22

  1. From 1st April 2020, an individual who is getting a dividend will be liable to pay tax. Sections such as 10(34), 10(35), 115-O and some more have been amended in the Act.
  2. If the dividend is not received then the taxpayers are given relief from payment of advance tax. ITR Form 3 makes taxpayers enter quarterly details.
  3. Amendments in the Finance Bill 2021  (in Section 44AB) the threshold limit of tax audit is been increased to Rs. 10 crores (given the condition if the cash payments are less than 5 per cent of the total sales or turnover). The corresponding amendment is incorporated in the ITR Form 3
  4. The Schedule DI is removed
  5. Schedule 112A and Schedule 115AD(1)(b)(iii) are modified. A new column is incorporated where the nature of securities is to be added which is the resultant capital gain under section 112A or Section115AD(1)(b)(iii) of the income tax.
  6. Part A, that is for General Information under the part where the taxpayer is given the option to choose the alternative option of the new tax regime (under section 115BAC)is modified.
  7. The individual taxpayers who have income from business or other professions and are opting for an alternative tax regime are required to mention the date of filing in Form no. 10-IE and acknowledgement number.

Acknowledgement in ITR-V 

After completing all the necessary formalities, the assessee gets a printout of two copies of Form ITR-V (where V stands for Verification). One copy is held by the assessee while the other copy is held back in the record.

View of ITR 3

ITR Form 3 is divided into two sections that are, Part A and Part B. Additionally it consists of many schedules. Part A consists of General Information whereas Part B is about tax computation. The Schedules depend upon the applicability of the individuals.

The information contained in Part A is as below-

  • Name
  • Address
  • DOB
  • PAN number
  • Aadhar number
  • Contact Number
  • Email Address

A1 – Filed u/s 139(1)-On or before the due date, 139(4)-After the due date, 139(5)-Revised Return, 92CD-Modified return, 119(2)(b)-after condonation of delay.

Or

Filed in response to notice u/s 139(9), 142(1), 148, 153A 153C

A2- Are you opting for a new tax regime u/s 115BAC?

  • Yes
  • No

B – Are you filing a return of income under the Seventh proviso to section 139(1) but otherwise not required to furnish a return of income? Yes or No

  • Bi- Have you deposited an amount or aggregate of amounts exceeding Rs. 1 Crore in one or more current accounts during the previous year? (Yes/No)
  • Bii- Have you incurred expenditure of an amount or aggregate of the amount exceeding Rs. 2 lakhs for travel to a foreign country for yourself or for any other person? (Yes/No)
  • Biii- Have you incurred expenditure of amount or aggregate of the amount exceeding Rs. 1 lakh on the consumption of electricity during the previous year? (Yes/No)

C – If Revised/Defective/Modified, then enter Receipt No. and Date of filing the original return (DD/MM/YYYY)

D – If filed, in response to a notice u/s 139(9)/142(1)/148/153A/153C or order u/s 119(2)(b) enter Unique Number/ Document Identification Number (DIN) and date of such Notice/Order, or if filed u/s 92CD, enter the date of Advance Pricing Agreement

E – Residential Status in India or Residential Status in India (for HUF)

F – Do you want to claim the benefit under section 115H?

G- Are you governed by the Portuguese Civil Code as per section 5A?

H – Whether this return being filed by a Representative Assess?

  • Name of the representative
  • The capacity of the Representative (drop down to be provided)
  • Address of the representative
  • Permanent Account Number (PAN) of the representative

I – Whether you were Director in a company at any time during the previous year?

J – Whether you have held unlisted equity shares at any time during the previous year?

  • Name of Employer
  • Nature of Employer
  • TAN of Employer
  • Address of employer
  • Town/City, State, PIN Code
  • Gross Salary (1a + 1b + 1c)
  • Total Gross Salary
  • Allowances not exempt
  • Net Salary (2-3)
  • Deduction u/s 16 (5a + 5b + 5c)
  • Income chargeable under the head Salaries‘ (4 – 5)
  • Address of property 1:
    • a – Gross rent received or receivable or lettable value
    • b – The amount of rent which cannot be realized
    • c – Tax paid to local authorities
    • d – Total (1b + 1c)
    • e – Annual value (1a – 1d)
    • f – Annual value of the property owned (own percentage share x 1e)
    • g – 30% of 1f
    • h – Interest payable on borrowed capital
    • i – Total (1g + 1h)
    • j – Arrears/Unrealised rent received during the year less than 30%
    • k – Income from house property 1 (1f – 1i + 1j)
  • Address of property 2:
    • a – Gross rent received/ receivable/ lettable value
    • b – The amount of rent which cannot be realized
    • c – Tax paid to local authorities
    • d – Total (2b + 2c)
    • e – Annual value (2a – 2d)
    • f – Annual value of the property owned (own percentage share x 2e)
    • g – 30% of 2f
    • h – Interest payable on borrowed capital
    • i – Total (2g + 2h)
    • j – Arrears/Unrealised rent received during the year less than 30%
    • k – Income from house property 2 (2f – 2i + 2j)
  • Pass-through income if any *
  • Income under the head “Income from house property” (1k + 2k + 3)
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    A. Short-term Capital Gains (STCG)

    1. From the sale of land or building or both

    • a
      • I Full value of the consideration received/receivable
      • ii Value of the property as per stamp valuation authority
      • iii Full value of consideration adopted as per section 50C for the purpose of Capital Gains [in case (aii) does not exceed 1.05 times (ai), take this figure as (ai)
    • b – Deductions under section 48
      • I Cost of acquisition without indexation
      • ii Cost of Improvement without indexation
      • iii Expenditure wholly and exclusively in connection with the transfer
      • iv Total (bi + bii + biii) biv
    • c – Balance (aiii – biv)
    • d – Deduction under section 54B (Specify details in item D below)
    • e – Short-term Capital Gains on Immovable property (1c – 1d)
    • f – In case of transfer of immovable property, please furnish the following details (see note)

    2. From the sale of equity share or unit of an equity-oriented Mutual Fund (MF) or unit of a business trust on which STT is paid under section 111A or 115AD(1)(ii) proviso (for FII)
    3. For NON-RESIDENT not being an FII- from the sale of shares or debentures of an Indian company (to be computed with foreign exchange adjustment under the first proviso to section 48)
    4. For NON-RESIDENT- from the sale of securities (other than those at A2) by an FII as per section 115AD
    5. From the sale of assets other than at A1 or A2 or A3 or A4 above
    6. Amount deemed to be short term capital gains
    7. Pass-Through Income in the nature of Short Term Capital Gain
    8. Amount of STCG included in A1 – A7 but not chargeable to tax or chargeable at special rates in India as per DTAA
    9. 9 Total Short-term Capital Gain (A1e+ A2e+ A3a+ A3b+ A4e+ A5e+A6 + A7 – A8a) A9                      

    • Income from other sources: The information regarding income from other sources is enclosed:
      • Gross income chargeable to tax at normal applicable rates (1a+ 1b+ 1c+ 1d + 1e)
      • Income chargeable at special rates (2a+ 2b+ 2c+ 2d + 2e)
      • Deductions under section 57
      • Amounts not deductible u/s 58
      • Profits chargeable to tax u/s 59
      • Net Income from other sources chargeable at normal applicable rates
      • Income from other sources (other than from owning race horses)
      • Income from the activity of owning and maintaining racehorses
      • Income under the head “Income from other sources” (7 + 8e)
      • Information about accrual/receipt of income from Other Sources
    • Head/ Source of Income
    • Income of the current year
    • House property loss of the current year set off
    • Other sources of loss (other than the loss from race horses) of the current year set off
    • Current year’s Income remaining after setting off
    • Head/ Source of Income
    • Income after set off, if any, of current year’s losses as per 4 of Schedule CYLA)
    • Brought forward loss set off
    • Current year’s income remaining after setting off
    • Assessment Year
    • Date of Filing
    • House property loss
    • Short-term capital loss
    • Long-term Capital loss
    • Loss from owning and maintaining racehorses

    1. Part B- Deduction in respect of certain payments
    2. Part C, CA and D- Deduction in respect of certain incomes/other deduction

    • The Donations entitled to 100% deduction without qualifying limit
    • And Donations entitled to 50% deduction without qualifying limit
    • Also, Donations entitled to 100% deduction subject to qualifying limit
    • Donations entitled to 50% deduction subject to qualifying limit
    • Total donations
    • The tax under section 115JC in the assessment year 2021-22 (1d of Part-B-TTI)
    • The tax under other provisions of the Act in the assessment year 2021-22 (7 of Part-B-TTI)
    • Amount of tax against which credit is available [enter (2 – 1) if 2 is greater than 1, otherwise enter 0]
    • The utilisation of AMT credit Available
    • Amount of tax credit under section 115JD utilised during the year [total of item No. 4 (C)]
    • Amount of AMT liability available for credit in subsequent assessment years [total of 4 (D)]                    
    • 1 Tax under section 115JC in the assessment year 2021-22 (1d of Part-B-TTI)
    • 2 Tax under other provisions of the Act in the assessment year 2021-22 (2i of Part-B-TTI)
    • 3 Amount of tax against which credit is available [enter (2 – 1) if 2 is greater than 1, otherwise enter 0]
    • 4 The utilisation of AMT credit Available (Sum of AMT credit utilized during the current year is subject to a maximum of the amount mentioned in 3 above and cannot exceed the sum of AMT Credit Brought Forward)
    • 5 Amount of tax credit under section 115JD utilised during the year [total of item no 4 (C)]
    • 6 Amount of AMT liability available for credit in subsequent assessment years [total of 4 (D)]

    Income of specified persons (spouse, minor child etc.) includable in the income of the assessee as per section 64

    • Name of person
    • PAN of the person (optional)
    • Relationship
    • Amount (Rs)
    • Head of Income which included
    • 1 111- The accumulated balance of recognised provident for prior years
    • 2 111A or Section 115AD(1)(b)(ii)-Proviso (STCG on shares units on
    • 3 115AD (STCG for FIIs on securities where STT is not paid)
    • 4 112 provisoes (LTCG on listed securities/ units without indexation)
    • 5 112(1)(c)(iii) (LTCG for non-resident on unlisted securities)
    • 6 115AC (LTCG for non-resident on bonds/GDR)
    • 7 115AC (Income of non-resident from bonds or GDR purchased in foreign currency)
    • 8 115ACA (LTCG for an employee of the specified company on GDR)
    • 9 115AD (LTCG for FIIs on securities)
    • 10 115E (LTCG for non-resident Indian on specified asset)
    • 11 112 (LTCG on others)
    • 12 112A (LTCG on sale of shares or units on which STT is paid)
    • 13 STCG Chargeable at special rates in India as per DTAA
    • 14 LTCG Chargeable at special rates in India as per DTAA
    • 15 115BB (Winnings from lotteries, puzzles, races, games etc.)
    • 16 115BBE (Income under section 68, 69, 69A, 69B, 69C or 69D)
    • 17 115BBF (Tax on income from the patent)
      • a. Income under head business or profession
      • b. Income under head other sources
    • 18 115BBG (Tax on income from transfer of carbon credits)
      • an Income under head business or profession
      • b Income under head other sources
    • 19 115A(1)(b) (Income of a non-resident from Royalty)
    • 20 Income from other sources chargeable at special rates in India as per DTAA
    • 21 Pass-Through Income in the nature of Short Term Capital Gain chargeable @ 15%
    • 22 Pass-Through Income in the nature of Short Term Capital Gain chargeable @ 30%
    • 23 Pass-Through Income in the nature of Long Term Capital Gain chargeable @ 10%
    • 24 Pass-Through Income in the nature of Long Term Capital Gain chargeable @ 10% u/s. other than section 112A
    • 25 Pass-Through Income in the nature of Long Term Capital Gain chargeable @ 20%
    • 26 Pass-through income in the nature of income from another source chargeable at special rates
    • Name of the Firm
    • PAN of the firm
    • Whether the firm liable for an audit? (Yes/No)
    • Whether section 92E applicable to the firm? (Yes/ No)
    • Percentage Share in the profit of the firm
    • Amount of share in the profit
    • Capital balance on 31st March in the firm
    • 1 Interest income 1
    • 2 Dividend income from the domestic company (amount not exceeding Rs. 10 lakh) 2
    • 3
      • a. Name of the district along with pin code in which agricultural land is located
      • b. Measurement of agricultural land in Acre
      • c. Whether the agricultural land is owned or held on the lease (drop down to be provided)
      • d. Whether the agricultural land is irrigated or rain-fed (drop down to be provided)
      • i Gross Agricultural receipts (other than income to be excluded under rules 7A, 7B or 8 of I.T. Rules)
      • ii Expenditure incurred on agriculture
      • iii Unabsorbed agricultural loss of previous eight assessment years
      • iv Agricultural income portion relating to Rule 7, 7A, 7B(1), 7B(1A) and 8 (from Sl. No. 39 of Sch. BP)
      • v Net Agricultural income for the year (i – ii – iii) (enter nil if loss)
      • vi In case the net agricultural income for the year exceeds Rs.5 lakh, please furnish the following details (Fill up details separately for each agricultural land)
    • 4 Other exempt income (including exempt income of minor child) (please specify) 4
    • 5 Income not chargeable to tax as per DTAA
    • 6 Pass-through income not chargeable to tax (Schedule PTI) 6
    • 7 Total (1+2+3+4+5+6)Sl.
    • Name of business trust/ investment fund
    • PAN of the business trust/ investment fund
    • Sl.
    • Head of income
    • Amount of income
    • TDS on such amount, if any
    • 1 Amount of primary adjustment on which option u/s 92CE(2A) is exercised & such excess money has not been repatriated within the prescribed time
    • 2
      • a Additional Income tax payable @ 18% on above
      • b Surcharge @ 12% on ―a‖
      • c Health & Education cess on (a+b)
      • d Total Additional tax payable (a+b+c)
    • 3 Taxes paid
    • 4 Net tax payable (2d-3)
    • 5 Date(s) of deposit of tax on secondary adjustments as per section 92CE(2A)
    • 6 Name of Bank and Branch
    • 7 BSR Code
    • 8 Serial number of challan
    • 9 Amount deposited

     

      File online income tax returns
      • Schedule FSI: Details of Income from outside India and tax relief
      • Sl.
      • Country Code
      • Taxpayer Identification Number
      • Sl.
      • Head of income
      • Income from outside India (included in PART B-TI)
      • Tax paid outside India
      • The Tax payable on such income under normal provisions in India
      • Also, the Tax relief available in India (e)= (c) or (d) whichever is lower
      • The relevant article of DTAA if relief claimed u/s 90 or 90A
      • 1 Details of Tax relief claimed
      • 2 Total Tax relief available in respect of country where DTAA is applicable (section 90/90A) (Part of a total of 1(d))
      • 3 Total Tax relief available in respect of country where DTAA is not applicable (section 91) (Part of a total of 1(d))
      • 4 Whether any tax paid outside India, on which tax relief was allowed in India, has been refunded/credited by the foreign tax authority during the year? If yes, provide the details below:
        • a. Amount of tax refunded
        • b. Assessment year in which tax relief allowed in India
      • A1.  Details of Foreign Depository Accounts held (including any beneficial interest) at any time during the relevant accounting period)
      • A2.  Details of Foreign Custodial Accounts held (including any beneficial interest) at any time during the relevant accounting period
      • A3.  Details of Foreign Equity and Debt Interest held (including any beneficial interest) in any entity at any time during the relevant accounting period
      • A4.  Details of Foreign Cash Value Insurance Contract or Annuity Contract held (including any beneficial interest) at any time during the relevant
        accounting period
      • B. Details of Financial Interest in any Entity held (including any beneficial interest) at any time during the relevant accounting period
      • C. Details of Immovable Property held (including any beneficial interest) at any time during the relevant accounting period
      • D. Details of any other Capital Asset held (including any beneficial interest) at any time during the relevant accounting period
      • E. Details of account(s) in which you have signing authority held (including any beneficial interest) at any time during the relevant accounting period and which have not been included in A to D above.
      • F. Details of trusts, created under the laws of a country outside India, in which you are a trustee, beneficiary or settlor
      • G. Details of any other income derived from any source outside India which is not included in,- (i) items A to F above and, (ii) income under the head business or profession
      • Name of the spouse
      • PAN of the spouse
      • Heads of Income
      • Income received under the head
      • Amount apportioned in the hands of the spouse
      • Amount of TDS deducted on income at (ii)
      • TDS apportioned in the hands of a spouse
      • A Details of immovable assets
      • B Details of movable assets
      • C Interest held in the assets of a firm or association of persons (AOP) as a partner or member thereof
      • D Liabilities in relation to Assets at (A + B + C)
      • 1 a Tax payable on deemed total income under section 115JC (4 of Schedule AMT)
        b Surcharge on (a) (if applicable)
        c Health and Education Cess @ 4% on (1a+1b) above
        d Total Tax Payable on deemed total income (1a+1b+1c)
      • 2 Tax payable on total income
      • 3 Gross tax payable (higher of 1d and 2i)
      • 4 Credit under section 115JD of tax paid in earlier years (applicable if 2i is more than 1d) (5 of Schedule AMTC)
      • 5 Tax payable after credit under section 115JD (3 – 4)
      • 6 Tax relief
      • 7 Net tax liability (5 – 6d) (enter zero if negative)
      • 8 Interest and fees payable
      • 9 Aggregate liability (7 + 8e)
      • 10 Taxes Paid
      • 11 Amount payable (Enter if 9 is greater than 10e, else enter 0) 11
      • 12 Refund (If 10e is greater than 9) (Refund, if any, will be directly credited into the bank account) 12
      • 13 Do you have a bank account in India (Non- Residents claiming refund with no bank account in India may select No)
      • 14 Do you at any time during the previous year,-
        • (i) hold, as beneficial owner, beneficiary or otherwise, any asset (including financial interest in any entity)
          located outside India; or
        • (ii) have signing authority in any account located outside India; or
        • (iii) have income from any source outside India?
        • Identification No. of TRP
        • Name of TRP
        • Counter Signature of TRP15 If the return has been prepared by a Tax Return Preparer (TRP) give further details below:
      • 15 If the return has been prepared by a Tax Return Preparer (TRP) give further details below
      • 16 If TRP is entitled to any reimbursement from the Government, the amount thereof
      • 17 Tax Payments
        • A Details of payments of Advance Tax and Self-Assessment Tax
        • B Details of Tax Deducted at Source from Salary [As per Form 16 issued by Employer(s)]
        • C Details of Tax Deducted at Source (TDS) on Income [As per Form 16 A issued or Form 16B/16C furnished by Deductor(s) ]
        • D Details of Tax Collected at Source (TCS) [As per Form 27D issued by the Collector(s)]

       

      The Schedules in ITR 3 are- Schedule S, Schedule HP, Schedule BP, Schedule DPM, Schedule DOA, Schedule DEP, Schedule DCG, Schedule ESR, Schedule CG, Schedule 112A, Schedule 115AD, Schedule OS, Schedule CYLA, Schedule BFLA, Schedule CFL, Schedule UD, Schedule ICDS, Schedule 10AA, Schedule 80G, Schedule RA, Schedule 80-IA, Schedule 80-IB, Schedule 80-IC or 80-IE, Schedule VI-A, Schedule AMT, Schedule AMTC, Schedule SPI, Schedule SI, Schedule IF, Schedule EI, Schedule PTI, Schedule-TPSA, Schedule FSI, Schedule TR, Schedule FA, Schedule 5A, Schedule AL, Schedule GST.

       

      Part of Schedule HP is below. The HP stands for the House Property so an individual has to enter details respectively.

       

      Verification

      The verification form structure is as follows:

      “I, __________________________son/ daughter of solemnly declare that to the best of my knowledge and belief, the information given in the return and schedules thereto is correct and complete and is in accordance with the provisions of the Income-tax Act, 1961. I further declare that I am making returns in my capacity as ___________ (drop down to be provided) and I am also competent to make this return and verify it. I am holding a permanent account number (if allotted) (Please see instruction). I further declare that the critical assumptions specified in the agreement have been satisfied and all the terms and conditions of the agreement have been complied with. (Applicable in a case where the return is furnished under section 92CD)

      Date: Sign here:”

      This is the standard format, any deviation from it is not accepted.

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