Income Tax Return Form 3 (ITR-3) Information

Income Tax Return Form 3 (ITR-3) is one of the forms provided by the Income Tax Department in India for the filing of income tax returns. ITR-3 is applicable to individuals and Hindu Undivided Families (HUFs) who have income from a proprietary business or profession. Here are key points about ITR-3:

• Applicability:
  • ITR-3 is meant for individuals and HUFs who are partners in a firm but are not carrying out business or profession under any proprietorship.
• Sources of Income:
  • This form is specifically designed for those individuals and HUFs who have income from a proprietary business or profession. It is not meant for salaried individuals.
• Not for Capital Gains or Speculative Income:
  • Individuals with income from capital gains or speculative income are not eligible to use ITR-3. In such cases, other forms like ITR-2 or ITR-4 may be applicable.
• Mandatory Auditing:
  • If the income from business or profession exceeds the threshold limit specified under the Income Tax Act, the taxpayer is required to get their accounts audited. In such cases, ITR-3 must be submitted along with the audit report.
• Computation of Business Income:
  • ITR-3 requires detailed information about the computation of business income, including profit and loss account, balance sheet, and other financial statements related to the business or profession.
• Disclosure of Partner's Share in Profit:
  • For partners in a partnership firm, ITR-3 mandates the disclosure of the partner's share in the profit of the firm.
• Filing Mode:
  • ITR-3 can be filed online on the official Income Tax e-filing portal or manually by submitting a physical copy of the form to the Income Tax Department.