HOW TO FILE ITR-3 ONLINE?

ITR-3

1. WHAT IS ITR & WHAT ARE THE TYPES OF INCOME TAX RETURNS?

ITR stands for Income Tax Return, it is a form through which the amount of income earned, and taxes paid by the person during a particular year is communicated to the Income Tax Department.

Types of Income Tax Return

• ITR 1(also known as SAHAJ) for individuals.
• ITR 2 for individuals having capital income.
• ITR 3 for individuals having business income.
• ITR 4 for individuals declaring income under presumptive scheme.
• ITR 5 for llp & partnership firms.
• ITR-6 for companies.
• ITR-7 for ngo, trust, societies claiming benefits of 12a & 80g.

2. WHO IS ELIGIBLE TO FILE ITR-3?

ITR 3 is applicable to Individual/ HUF : -

• Who are liable to get their accounts audited as per Income Tax Act.
• Who have income under the head Profit or gains from business or profession.
• Who are not eligible to file ITR-1, ITR-2 & ITR-4.
• Who receives income by way of Interest, Salary, Bonus, Commission or remuneration from a partnership firm or llp.

3. WHO IS NOT ELIGIBLE TO FILE ITR-3?

ITR 3 cannot be filed by: -

• Company (whether private or public)
• Partnership firms.
• Individual/ HUF showing income under presumptive income scheme.
• Trust/ Ngo/ Society.

4. TYPE OF INCOME THAT CAN BE SHOWN IN ITR 3

Following are the types of income that can be shown in ITR-3

• Income from Salary.
• Income from House property.
• Income from Capital gains.
• Income from business/ profession.

• Income from other sources of nature as specified: -

• Winnings from lottery.
• Activity of owning and maintain racehorses.
• Income taxable at specified rates under section 115BBDA or 115BBE.

5. DOCUMENTS REQUIRED TO FILE ITR-3

Following documents are required to file ITR 3: -

• Form 16 (If you have income from salary)
• From 16A (If you have earned interest on deposits and TDS is deducted)
• Saving certificate from bank.
• Form 26AS to match the corresponding TDS deducted with TDS appearing in 26AS.
• AIS/ TIS to match corresponding income with Form 16, From 16A.
• Bank Passbook.
• Tenant details if you have income from House property also details of local taxes paid, interest on borrowed capital (if any) for calculation of income from House Property
• In case of capital gain transactions, you will need a summary of profit/ loss statement of capital gain transactions during the year.
•  In case of capital loss, one must file ITR before due date to carry forward such loss.
• Investment details (if any).
• Books of accounts, ledger, trail balance for Profit & Loss account.
• Gst details (if any).

      NOTE:

Since ITR’s are annexure less forms the above-mentioned documents are not to be attached with the ITR Form. However, one needs to keep these documents as it can be demanded by the tax authorities during assessment, inquires.

6. HOW TO FILE ITR 3?

By following the steps mentioned below one can file ITR-3

• Visit the income tax portal by clicking on the following link https://www.incometax.gov.in/

• Click on login and enter your pan & password to login to the income tax portal.

• Click on e-file, then click on file income tax returns.

• Select the assessment year for which you want to file ITR and select the mode of filing (here we are telling about online filing procedure).

• Click on continue and select the ITR form i.e. ITR-3 in our case.

• After selecting the ITR-3, the next step is to select the schedules applicable to you for e.g. Schedule Capital Gains, Schedule House Property.

• The first step is to select whether you want to opt out of old scheme or not as the new scheme is default scheme from A.Y 2024-25.

• The next step is to fill the basic details like directorship details, pre validated bank account etc.

• The next step is to fill the nature of one’s business.

• The next step after the filing the nature of business is to fill the Balance sheet, Manufacturing/ Trading account & Profit & loss account.

• After filing the business details, the next step is to fill the details of any other income as per the schedule selected by you.

• In the Capital gain schedule, first select the type of Capital Asset sold: -

• After selecting the schedules fill the details accordingly into Long term or Short term Capital Gain.

• After filing the capital gain details the next step is to fill the details regarding Virtual Digit Asset sold during the year.

• After filing the VDA details the next step is to fill the details regarding income from other sources.

• The next step is to fill the depreciation schedule.

• The next step is to check the Schedule of current year losses and Schedule carry forward loss to correctly update your losses and carry forward if applicable.

• The next step is to fill the unabsorbed depreciation schedule. Unabsorbed depreciation is the amount of unutilized depreciation which the assessee will not be able to claim as an expense in his return due to lack of sufficient profit.

• The next step is to claim deductions under various sections like 10AA, 80D, 80-IA, 80-IB, 80-IC/IE & Schedule VI-A as applicable to you.

• The next step is to verify the details of taxed paid by you including the TDS deducted and TCS collected from you.

• The next step is to click on total tax liability, wherein the system will automatically calculate your tax liability and if taxes paid is greater than the tax liability you will be entitled to get a refund and if the tax liability is more than the taxes paid then pay the remaining tax liability.

• After that click on preview return and verify the inputs provided by you

• Click on proceed to validation, if any error occurs clear the error and click on proceed to verification.

• The last step is to verify the return prepared you can verify the return through following methods: -

1. Through Aadhar OTP.
2. Through digital signature (DSC)
3. Through Net banking
4. Through pre validated bank account
5. Through pre validated demat account
6. Through Net banking.
7. By sending signed physical copy to the Income tax department, Bengaluru.

• After verification of the return, your return will be finally submitted to the Income Tax department for further verification.