Everything about ITR 3

ITR-3 is used by individuals and Hindu Undivided Families (HUFs) who have income from profits and gains of business or profession. It also includes individuals and HUFs who have income from the following sources:

• Carrying on a business or profession.
• Income from house property.
• Income from salary/pension.
• Income from other sources.
• Income from capital gains.
• Income from foreign assets

Here’s a detailed guide on filing ITR-3 for Assessment Year 2024-25:

Who Should File ITR-3?

• Individuals and HUFs having income from profits and gains of business or profession.
• Individuals and HUFs having income as a partner in a firm.
• Individuals and HUFs having income from house property, salary/pension, other sources, and capital gains.
• Income Sources Covered:
  • Income from Business or Profession
  • Profits or gains from a business or profession carried on by the taxpayer.
  • Income from House Property.
  • Rental income from more than one house property.
  • Income from Salary/Pension:
  • Salary or pension received by the taxpayer.
  • Income from Other Sources:
  • Interest, dividends, lottery winnings, etc.
  • Income from Capital Gains:
  • Short-term and long-term capital gains.
  • Income from Foreign Assets:
  • Income from any foreign asset or foreign income.

Key Sections and Details in ITR-3

• Part A – General Information:
  • Personal details such as name, PAN, Aadhaar number, contact details, and filing status.
• Part B – Gross Total Income:
  • Details of income from salary, house property, capital gains, business or profession, and other sources.
• Part C – Deductions and Taxable Total Income:
  • Deductions under Chapter VI-A (like Section 80C, 80D, etc.) and computation of taxable income.
• Part D – Computation of Tax Payable:
  • Calculation of tax payable on the total income, including interest and fee.
• Part E – Other Information:
  • Details of tax payments such as advance tax, self-assessment tax, and TDS.
• Schedules:
  • Various schedules like Schedule BP (Income from Business or Profession), Schedule CG (Capital Gains), Schedule HP (Income from House Property), and others to provide detailed income and deduction information.

Step-by-Step Guide to Filing ITR-3

• Log In:
  • Visit the official Income Tax e-Filing portal: https://eportal.incometax.gov.in/
  • Log in using your User ID (PAN), password, and Captcha code.
• Go to ITR Filing Section:
  • Click on the ‘e-File’ tab and select ‘Income Tax Return’.
• Select ITR-3:
  • Choose the relevant assessment year and select ITR-3.
  • Choose ‘Prepare and Submit Online’.
• Fill in the Form:
  • Part A – General Information: Verify and update personal information.
  • Part B – Gross Total Income: Enter details of income from various sources.
  • Part C – Deductions and Taxable Total Income: Enter deduction details.
  • Part D – Computation of Tax Payable: Calculate the tax payable.
  • Part E – Other Information: Enter details of tax payments.
• Schedules: Fill in the relevant schedules with detailed information.
• Validate and Calculate:
  • Click on ‘Validate’ to check for errors.
  • Click on ‘Calculate Tax’ to compute your tax liability or refund.
• Submit and Verify:
  • Submit the form and choose the verification method:
    • Aadhaar OTP
    • Electronic Verification Code (EVC)
    • Digital Signature Certificate (DSC)
    • Sending a physical signed copy of ITR-V to CPC, Bengaluru
• E-Verify:
  • Complete the e-verification process using one of the available methods or send the signed ITR-V to CPC within 30 days of filing.

Important Points

• Accuracy: Ensure all details and figures are accurate to avoid discrepancies and potential notices from the Income Tax Department.
• Documentation: Keep all relevant documents like Form 16, Form 26AS, bank statements, and proof of deductions handy for reference and future scrutiny.
• Schedules: Carefully fill in all applicable schedules to accurately report your income and deductions.

Conclusion

Filing ITR-3 can be complex due to the various income sources and detailed information required. However, following the steps outlined above and ensuring accurate and complete information can help you file your return correctly for the Assessment Year 2024-25. If needed, feel free to let us know especially if you have multiple income sources or complex financial transactions.