ITR-3

ITR-3 is an income tax return form prescribed by the Income Tax Department of India for individuals and Hindu Undivided Families (HUFs) who have income from proprietary business or profession. It is suitable for taxpayers who have income from business or profession and do not qualify to file their tax returns using ITR-1 (Sahaj) or ITR-2. Here’s an overview of ITR-3:

Eligibility:

• ITR-3 is applicable to individuals and HUFs who have income from proprietary business or profession.
• It is suitable for taxpayers who have income from business or profession and do not qualify to file their returns using ITR-1 or ITR-2.

Key Features:

1. Business/Profession Details: Taxpayers need to provide detailed information about their business or profession, including turnover/gross receipts, expenses, depreciation, and other relevant details.
2. Partnership Firm: Individuals who are partners in a partnership firm and have income from the firm can use ITR-3 to file their returns.
3. Capital Gains: If the taxpayer has capital gains from the sale of assets, they need to provide details of such gains in the relevant schedule.
4. Income from Other Sources: Apart from income from business or profession, taxpayers can also report income from other sources such as salary, house property, capital gains, and other sources.
5. Deductions: Taxpayers can claim deductions under various sections of the Income Tax Act, such as Section 80C (investment in specified instruments), Section 80D (health insurance premium), Section 80G (donations), etc.
6. Bank Account Details: Taxpayers need to provide details of their bank accounts, including the IFSC code and bank account number, for receiving any refund due.
7. Verification: After filling out the form, taxpayers need to verify it either electronically (using Aadhaar OTP, Net Banking, etc.) or by sending a signed physical copy to the Income Tax Department.

Due Date: The due date for filing ITR-3 for most individuals is usually July 31st of the assessment year. However, it’s advisable to check the latest due date as announced by the Income Tax Department for each financial year.

Filing income tax returns accurately and timely is essential to avoid penalties and comply with tax regulations. Taxpayers should ensure that all relevant income details, deductions, and other information are correctly reported in the ITR-3 form before submission. Additionally, keeping records of supporting documents and maintaining tax compliance throughout the year can facilitate a smooth filing process.