Guidelines for ITR-3 Filing

ITR-3 Filing forms

Who can file ITR-3?

Eligibility for ITR-3 Filing:

An individual or a Hindu undivided Family carrying out a proprietary business or profession.

Manner of filing this ITR:

ITR-3 Filing forms

Reference: INCOME TAX WEBSITE

Trutax Income Tax e-filing process: ITR-3 Filing

ITR-3 Filing

Every individual or HUF whose total income before allowing deductions under Chapter VI-A of the Income-tax Act, exceeds the maximum amount which is not chargeable to income tax is obligated to furnish his return of income. The maximum amount not chargeable to income tax in case of different categories of individuals is as follows:

eligibility for ITR-3 Filing

How to file the ITR-3?

PART A- General Information

Under Personal Information, the details of the assessee such as PAN, Name, Address details, Contact details and relevant information for determining the assessee’s tax profile shall be captured.

Nature of Business and Profession:

Select the applicable Nature of Business and enter the Trade Name. If you have multiple business or profession, then provide the details of all of them by using the “Add” option.

PART A- BS (BALANCE SHEET):

  • In case where regular books of accounts of the business or profession are maintained, please enter the details as per your Balance Sheet of the Proprietory Business or Profession as on 31st March, 2017 in the given format of “Source of Funds” & “Application of Funds”.
  • In case where regular books of accounts of the business or profession are not maintained, please enter the details of Debtors, Creditors, Stock-in-trade and Cash balance under ‘No account case’.

PART A – P&L (Profit and Loss Account):

  • In case where regular books of accounts of the business or profession are maintained, please enter the details of Profit and Loss account of proprietary business or profession carried out by you during the Financial Year 2016-17.
  • In case where regular books of accounts of the business or profession are not maintained, please enter the details of Gross Receipts, Gross Profit, Expenses and Net profit under ‘No account case’ as applicable.

PART A – OI (Other Information):

  • If the accounts of the business or profession were not required to be audited under section 44AB, it is optional to fill this part.
  • Where the accounts of the business or profession were required to be audited under section 44AB, the details to be filled in this part should broadly match with the details as given in the audit report.

PART A – QD (Quantitative details)

  • This part is optional in case you are not liable for audit under section 44AB of the Income Tax Act, 1961.
  • The quantitative details may be furnished only in respect of principal items.

Part B-TI Computation of Total Income:

Under this section, the below details are available.

  • Tax computation
  • Rebate u/s 87A
  • AMT Credit
  • Relief u/s 89, 90, 90A and 91.

Note: Relief u/s 89 can be entered only by an individual assessee. The claim of Relief under section 89 shall be allowed only if Form 10E is e-Filed (Or Manually filed in case of paper return).

  • Interest Chargeable u/s 234A, 234B, 234C.
  • Summary of Tax Payments like TDS, TCS, Advance Tax and Self-Assessment Tax.
  • Net Tax Payable or Net Refund receivable.
  • Bank Account Details.
  • Resident Individual or HUF has to select whether during the previous year they;
  • hold, as beneficial owner, beneficiary or otherwise, any asset (including financial interest in any entity) located outside India or
  • have signing authority in any account located outside India or
  • have income from any source outside India
  • Verification
  • If the return has been prepared by a Tax Return Preparer (TRP) give further details as below;
  • Identification No. of TRP
  • Name of TRP
  • If TRP is entitled for any reimbursement from the Government, amount thereof

Schedule IT, TDS, TCS:

ITR-3 Filing Schedules

Schedule-S:

  • Fill the details of salary as given in TDS certificate(s) i.e., Form 16 issued by the employer(s).
  • In case there was more than one employer during the year, please furnish the separate details with respect to each salary received from different employers.

Schedule-HP:

  • This schedule is to be filled if you have a rental income.
  • If there are more than two house properties, fill out the details for each properties by selecting “Add Property” button. In case, a single house property is owned by the assessee, which is self-occupied and interest paid on the loan taken for the house property is to be claimed as a deduction then also this schedule shall be filled to claim deduction.
  • In case the property is co-owned then the assessee needs to furnish the name of the co-owner, PAN and percentage of share of the other co-owner (s) in the property. In case of part ownership of property, the figure of annual value or rent receivable/received should be for whole of the property and only after computation of annual value the portion chargeable in own hands should be computed by multiplying such annual value with assessee’s percentage share in the property.

Schedule-BP:

  • This schedule has three types of BP Income.
  • Business or Profession other than speculative business and specified business.
  • Speculative business and
  • Specified business under section 35AD.
  • The Profit Before Tax shall be prefilled based on the amounts entered in Part A–P &L (Profit & Loss Account).
  • In case agricultural income to be excluded on the basis of rule 7A, 7B or 8 (in business of growing and manufacturing tea, coffee etc.), it shall not be included in the item 5c of this schedule.
  • Income earned by the assessee by way of salary, commission, bonus, interest, etc. from other firms in the capacity of a partner, which has not been included in the profit and loss account of the proprietary business needs to be disclosed in item No. A24 in Schedule BP.
  • Any item of addition or deduction not covered by the items mentioned in this schedule be filled in residual items 23 and 32 of this schedule

Schedule-DPM, Schedule DOA, Schedule DEP and Schedule DCG:

  • For sake of convenience, computation of depreciation allowable under the Income-tax Act [other than in case of an undertaking generating electricity which may at its option claim depreciation on straight line method under section 32(1)(i)], has been divided into two parts i.e. in schedules DPM (depreciation on plant and machinery) and DOA (depreciation on other assets).
  • The summary of depreciation as per these schedules will be auto-populated in schedule DEP. Deemed short-term capital gain, if any as computed in schedule DPM and DOA will be autopopulated in schedule DCG.

Schedule ESR: Deduction under section 35 or 35CCC or 35CCD:

  • Please furnish the details of deduction to which you are entitled under provisions of sections applicable under this schedule.
  • Please enter the amounts of expenses of the nature covered by section 35 which are, if, debited to profit and loss account.
  • Please note that no deduction for depreciation is available in respect of capital asset for which deduction under section 35(1)(iv) has been claimed.
  • Deduction under section 35CCC and 35CCD are also to be filled in this schedule.

Schedule-CG:

  • Capital gains are bifurcated into:
  1. Short-term capital gain
  2. Long-term capital gain
  • Deductions on capital gain u/s 54/54B/54D/54EC/54EE/54F/54G/54GA/54GB/115F shallØ also be filled. If any deduction is claimed then details of such deduction should be summarised under item D.
  • Quarter wise breakup (post considering the set-offs under CYLA & BFLA) of short term and long term capital gains (Accrued/Received cumulatively rate-wise) should be provided in item F.

Schedule-OS:

In this schedule provide the below details:

  • The gross income by way of dividend and interest which is not exempt.
  • Rental Income from hiring machinery, plant or furniture, building (where its letting is inseparable from the letting of the said machinery, plant or furniture), if it is not chargeable to income-tax under the head “Profits and gains of business or profession”.
  • Any other income under the head other sources such as winning from lottery, crossword puzzles etc., income of the nature referred to in section 68, 69, 69A, 69B, 69C or 69D. The nature of such income is also required to be mentioned.
  • Income from owning and maintaining race horses.

Schedule-CYLA:

The Current Year losses, if any, shall be set off against the eligible incomes of Current Year. This schedule will be auto-calculated.

Schedule-BFLA:

The Brought Forwarded losses from Previous Years, Brought Forwarded Unabsorbed Depreciation and Allowances under section 35(4) shall be set off against the eligible incomes of Current Year which are remaining after Current Year Loss adjustments. This schedule will be auto-calculated.

Schedule-CFL:

The summary of eligible losses carried from earlier years under different heads of income, if any, is to be entered.

Schedule UD:

  • In this schedule, the amount of Brought Forward Unabsorbed Depreciation and Allowance under section 35(4) for each Assessment Year is to be entered.
  • Amount of Depreciation and Allowance under section 35(4) set-off against the current year’s income is to be mentioned.

Schedule ICDS:

Deviation from each ICDS (Income Computation Disclosure Standards) as notified under section 145(2) of the Income-tax Act that has an effect on profit can be entered in this Schedule. The net effect is to be taken to Part A-OI.

Schedule 10A:

  • The amount of deduction under section 10A for an undertaking in respect of units located in Special Economic Zone shall be as per item 17 of Form No.56F being the report of audit under section 10A.
  • If there are more than one undertaking entitled for deduction under this section, please enter the details of deduction for each undertaking separately.

Schedule 10AA:

  • The amount of deduction under section 10AA for an undertaking in respect of units located in Special Economic Zone can be entered.
  • If there are more than one undertaking entitled for deduction under this section, please enter the details of deduction for each undertaking separately.

Schedule-80G:

Mention the details of donations entitled for deduction under section 80G. Donations entitled for deductions have been divided in four categories, namely:

  • Donations entitled for 100% deduction without qualifying limit.
  • Donations entitled for 50% deduction without qualifying limit.
  • Donations entitled for 100 % deduction subject to qualifying limit.
  • Donations entitled for 50% deduction subject to qualifying limit.

Schedule 80:

  • The amount of deduction for an undertaking shall be entered as per item 30 of Form No.10CCB being the report of audit under section 80-IA/ 80-IB/ 80-IC and 80-IE.
  • If there are more than one undertaking entitled for deduction under any of these sections, please enter the details of deduction in relevant schedule for each undertaking separately.

Schedule-VI-A:

ITR-3 Filing deductions

ITR-3 Filing 80C Deductions

ITR-3 Filing 80D Deductions

ITR-3 Filing income tax deductions

ITR-3 Filing deductions

Schedule AMT:

  • The computation of Alternate Minimum Tax (AMT) payable under section 115JC (special provisions for payment of tax by certain persons other than a company) will be made under this schedule.
  • All the fields will be auto-calculated except for the “Deduction claimed u/s 35AD” which can be entered in this schedule.
  • The tax liability under the section shall be 18.5 percent of the adjusted total income computed under the said section.
  • The computation under this Schedule is to be based on Form No.29C.

Schedule AMTC:

  • Computation of tax credit under section 115JD will be made in this schedule.
  • The Gross amount of Credit, Set-off in earlier assessment years and the AMT Credit Utilised during the Current Assessment Year can be entered in this schedule.

Schedule-SPI:

Furnish the details of income of spouse, minor child, etc., if to be included in your income in accordance with provisions of Chapter V of the Income-tax Act. The income entered in this Schedule has to be included in the respective head of income.

Schedule-SI:

In this schedule, incomes which are chargeable to tax at special rates shall be auto-calculated from the appropriate columns in schedule BFLA/CYLA or schedule OS.

Schedule-IF:

This Schedule is to be filled if you are a partner in a firm. The below details of each firm in which you are partner are to be provided in this schedule:

  • Name
  • PAN
  • Whether liable for audit
  • Whether section 92E is applicable?
  • Percentage share in the profit of the firm
  • Amount of share in the profit
  • Capital Balance as on 31st March in the firm

Schedule-EI:

Furnish the details of income like Agriculture Income, Interest, and Dividend etc. which is exempt from tax.

Schedule PTI:

Fill the below details from business trust or investment fund as per section 115UA, 115UB.

  • Name of business trust or investment fund.
  • PAN of business trust or investment fund.
  • Income from House property and TDS on such amount.
  • Income from short term capital gain and TDS on such amount
  • Income from Long term capital gain in column number 6 and TDS on such amount
  • Income from other sources in column number 6 and TDS on such amount
  • Income received from business trust or investment fund claimed to be exempt under section 10(23FBB), 10(23FD), etc.

Schedule FSI:

In this Schedule, fill the details of income, which is already included in total income, accruing or arising outside India.

Schedule TR:

In this schedule, fill the taxes paid outside India on the income declared in Schedule FSI which will be the total tax paid of schedule FSI in respect of each country and tax relief available which will be the total tax relief available in schedule FSI in respect of each country.

Schedule FA:

  • This schedule is to be filled up by a resident assessee and not to be filled up by a ‘not ordinarily resident’ or a ‘non-resident’.
  • Mention the details of foreign bank accounts, financial interest in any entity, details of immovable property or other assets located outside India.
  • This should also include details of any account located outside India in which the assessee has signing authority, details of trusts created outside India in which you are settlor, beneficiary or trustee.
  • Under all the heads mention income generated/derived from the asset.
  • The amount of income taxable in your hands and offered in the return is to be filled out under respective columns.
  • Item G includes any other income which has been derived from any source outside India and which has not been included in the items A to F and under the head business of profession in the return.

Schedule5A:

  • This Schedule is to be filled in case of assessee governed by Portuguese Civil Code.
  • The share of income of the spouse should be filled in this schedule and the same should form part of the return of income of the spouse.

Schedule AL:

  • This Schedule is to be filled by individuals and HUFs giving details of properties held by the assessee and the corresponding liabilities.
  • It is mandatory if your total income exceeds ₹50 lakh.
  • The assets to be reported will include land, building (Immovable Assets); financial assets bank deposits, shares and securities, insurance policies, loans and advances given, cash in hand and Jewellery, bullion, vehicles, yachts, boats, aircraft etc. (Movable Assets) and interest held in the asset of a firm or association of persons (AOP) as a partner or member thereof.
  • In the case of non-resident and resident but not ordinarily resident, the details of assets located in India are to be mentioned.

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