ITR 3 Income Tax Return Explained
ITR 3 Income Tax Return form is for Individuals and Hindu Undivided Families which have income from business and profession. ITR 3 also supports income from other heads of income such as Salary/pension, House Property, Other Sources and Income from Capital Gains unlike ITR 2. This is an exhaustive form and covers individuals who are residents, nonresidents or not ordinary residents.
Who should be filing ITR 3 ?
An Individual or a HUF having income from the following heads of income can file their income tax return using this form:
- House Property
- Profits & Gains from Business and Profession, Including Audit us 44AB or 92E
- Capital Gains
- Income from Other Sources
Who cannot file ITR 3?
Following assesses cannot file their income tax return using ITR 3:
An Assesse who is not an Individual or a Hindu Undivided Family
ITR 3 Form Explained
Almost all the contents of the form under Part A-GEN is self-explanatory. Aadhar has been made mandatory and an individual assesse has to mandatorily quote Aadhar or Aadhar Enrollment ID to file the income tax return. Make sure you fill in the audit information if it’s applicable for you including the auditor appointment details, FRN/MRN and date of audit report.
Part A-BS: Balance Sheet (Proprietary Business):
Fill out Balance Sheet details for the proprietary business in this section. Only businesses maintaining regular sets of accounts are to provide details here and the ones not maintaining regular sets of accounts can fill item 6.
Part A Manufacturing:
Provide details about manufacturing account if applicable in this section. Fill in point 1 to 3 where regular set of books are maintained otherwise fill items 61 to 64.
Part A Trading Account:
Provide details about the business trading account if applicable in this section. Fill in point 4 to 12 where regular set of books are maintained otherwise fill items 61 to 64.
Part A-P&L: Profit & Loss Account:
Provide proper Profit and Loss account of the business under this section. Fill in point 13 to 60 where regular set of books are maintained otherwise fill items 61 to 64.
Part A-OI: Other Information:
Provide other information such as method of accounting employed, change if any, method of stock valuation employed etc.
Part A-QD: Quantitative Details:
Fill in details about Stock, Raw materials, Finished/By-products in this section. This part is mandatory if the assesse is liable for audit under section 44AB.
Schedule S: Income from Salary Details:
All the details regarding Income from salary, allowances, perquisites and deductions have to enter under this schedule.
Schedule HP: Income House Property Details:
Mention all the details regarding income from house property, ownership particulars and PAN of tenant if available. Also note that you can enter details of income from multiple house properties held.
Schedule BP: Income from Business Profession:
Provided and compute income from business and profession carried on by the assesse in this part of the form.
Schedule DPM: Depreciation on Plant & Machinery:
Under this schedule you need to provide the details of Depreciation charged on Plant and Machinery, other than assets on which full capital expenditure is allowed as under other section.
Schedule DOA: Depreciation on Other Assets:
Under this schedule you need to provide the details of Depreciation charged on other assets, other than assets on which full capital expenditure is allowed as under other section.
Schedule DEP Summary of Depreciation:
Under this schedule you need to give the details of total Depreciation charged, other than assets on which full capital expenditure is allowed as under other section.
Schedule DCG Deemed Capital Gain on Sale Of Depreciable Assets:
Everything regarding Deemed Capital Gain on sale of depreciable assets has to be detailed under this schedule of the form.
Schedule ESR Expenditure on Scientific Research:
Details of all expenditure incurred on scientific research and amount of deduction allowable under section 35 of the Income tax act.
Schedule CG Capital Gains:
Enter all the details regarding income from both Short Term Capital Gains and Long term Capital gains here.
Schedule OS Income from Other Sources:
Provide the details of income from other sources, including interest from saving bank accounts, deposits, income tax refunds, etc. along with the applicable deductions.
Schedule CYLA: Details of Current Year Losses Setoff:
Give details and any current year losses setoff and details of amount remaining after setoff.
Schedule BFLA: Details of Brought Forward Losses:
Here you need to provide details of losses brought forward from previous years in any, and income after such setoff.
Schedule CFL: Details of Losses Carry Forward:
Here you need to mention details about losses to be carried to future years if any with breakup of heads along with amounts.
Schedule UD: Unabsorbed Depreciation:
Give the details of all unabsorbed depreciation any brought forward , setoff against the current years income, and balance if any carried forwarded.
Schedule ICDS: Income Computation Disclosure Standards:
Provide the details of any effect positive or negative effects with amount on profit while computing Income by Income Computation Disclosure Standards.
Schedule 10AA: Deduction under Section 10AA:
Give the breakup details in respect of deduction if any claimed in respect of units located under special economic zone covered under section 10AA.
Schedule 80G: Details Of Deduction Claimed Deduction us 80G:
Breakup of details of deduction claimed for any donations under section 80G. Other details such as Name, Address, PAN, amount and mode eligible of done for deduction.
Schedule RA: Details of Donation to Research Associations etc:
Breakup of details of deduction claimed for any donations under section 35 towards research associations. Other details such as Name, Address, PAN, amount and mode eligible of done for deduction.
Schedule 80IA: Details Of Deduction Claimed us 80IA:
Breakup of details of deduction if any claimed under section 80IA for industries involved in specified activities such as Telecommunication Services, Industrial Parks, SEZs, Power generation and Natural gas distribution networks.
Schedule 80IB: Details Of Deduction Claimed Deduction us 80IB:
Breakup of details of deduction if any claimed under section 80IB in respect of profits and gains from certain specified industrial undertakings other than infrastructure development undertakings such as Multiplex theater, refining of mineral oil, convention center, developing and building housing projects, operating a cold chain facility etc .
Schedule 80IC, 80IE: Details Of Deduction Claimed Deduction us 80IC, 80IE:
Breakup of details of deduction if any claimed under section 80IB in respect of profits and gains from certain specified industrial undertakings located in specified states such as Sikkim, Himachal Pradesh, Uttaranchal or located in specified parts of north east.
Schedule VI-A: Details Of Deduction Claimed us Chapter VI A:
All information regarding Chapter VI A deductions in respect of payments made and in respect or incomes i.e. under section 80C, 80G, 80QQB, 80RRB, 80TTA, 80TTB & 80U.
Schedule AMT: Computation of Alternate Minimum Tax payable under section 115JC:
Details and computation of Alternate Minimum Tax under section 115JB has to be mentioned in this section of the form.
Schedule AMTC: Computation of tax credit under section 115JD:
Information of AMT credit and its utilization under section 115JC has to mention in this part of the form.
Schedule SPI: Details of Income Clubbed with Assesse:
In this part of the form details of income if any clubbed with the assesse under section 64 have to be mentioned and computed accordingly.
Schedule SI: Details of incomes chargeable under special rates:
Under this part amount of tax which has been charged under special rates such as STCG or LTCH @ 15%, 30% or 10% have to be mentioned.
Schedule IF: Provide Information regarding partnership firms in which you are partner
Schedule EI: Details of Exempted Income:
Details of Exempted income which are not included in total income and details of income not chargeable to tax have to be mentioned here.
Schedule PTI: Details of Pass through Income:
Details of Pass through income as per section 115UA and 155UB are to be mention under this part of the form.
Schedule FSI: Details of income outside India and Tax relief:
Details including Tax Payers Identification number and total taxes paid outside India including relief available and claimed during the assessment year have to be provided for here.
Schedule TR: Details of Tax Relief claimed for taxes paid outside income
Summary of Tax Relief claimed for taxes paid outside are to be mentioned here.
Schedule FA: Details of foreign assets held and income or any source outside India
Details of Foreign Depository Accounts held including any beneficial interest at any time during the relevant accounting period are to be mentioned here.
Schedule 5A: Details for assesses having apportionment of income between spouses governed by Portuguese civil code are to be mentioned under this part of the form.
Schedule AL: Details of Assets & Liabilities as on the end of year
Details of Assets and Liability held as on the end of the year have to be mentioned here. This section is only applicable for assesses having total income above INR 50 Lakhs.
Schedule GST: Details regarding turnover or gross receipts reported under Goods and Services Act along with the GST Numbers held and Annual Value of outwards supplied as per returns filed under GST.
PART B-TI: Computation of Taxable Income
Your Taxable Total Income is computed under this part of the from.
PART B-TTI: Computation of Tax Liability on total Income
Tax liability is computed based on the Taxable Total Income as computed above
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