ITR 3 – What is ITR 3 Form & How to File ITR-3?
Updated on: Jul 23rd, 2022
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7 min read
This page contains information on filing ITR-3 for FY 2021-22 (AY 2022-23), FY 2020-21 (AY 2021-22), and FY 2019-20 (AY 2020-21)
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What is the ITR-3 Form?
The ITR-3 is applicable for individual and HUF who have income from profits and gains from business or profession. The persons having income from following sources are eligible to file ITR-3 :
Who can file ITR-3 Form?
- Carrying on a business or profession (both tax audit and non-audit cases)
- The return may include income from house property, salary/pension, capital gains and income from other sources.
Note:
- The due date for filing ITR-3 in case of a taxpayer subject to tax audit has been extended to 15th February 2022 from 31st October 2021 for the AY 2021-22 (FY 2020-21). The due date for furnishing tax audit report is extended to 15th January 2022.
- The threshold limit of Rs 1 crore for a tax audit is proposed to be increased to Rs 5 crore with effect from AY 2020-21 (FY 2019-20) if the taxpayer’s cash receipts are limited to 5% of the gross receipts or turnover, and if the taxpayer’s cash payments are limited to 5% of the aggregate payments.
How to File ITR-3? – Steps to e-File Your ITR-3
ITR e-Filing – Login & Required Documents
You can file your income tax return (ITR) on the ClearTax platform. Here is a guide on filing ITR-3 if you have income from business or profession, intra-day trading or Futures and Options (F&O) trading. Before we get started, you should have the following documents at hand to pace up the process:
- PAN
- Aadhaar
- Bank account details
- Form 16 if applicable
- Investments details
- Books of accounts
Login
Login to your ClearTax account (www.cleartax.in). You can file ITR yourself in a few simple steps. To begin ITR filing, click on the ‘Start Filing’ link.
Link Your PAN
Step 3: Clear (previously ClearTax) allows you to access data from the income tax department and pre-fill information for preparing an income tax return. Link your PAN by entering ‘PAN Card Number’ and ‘Date of Birth’.
The linking shall complete when you do an OTP verification. You can verify OTP by selecting ‘Aadhaar registered mobile number’ or ‘IT Department registered mobile number’.
Pre-fill Your Personal Information
To allow us to pre-fill your information from the income tax department, complete another OTP verification. This OTP verification is to capture all your personal information and income details in your income tax return with maximum security of your data.
Opting for this saves you a lot of time and hassle with manual entries. We’ve made painstaking efforts to help you file the return in under 3 minutes. So proceed to do an OTP verification.
After OTP verification, the personal information and income details will be imported from the income tax department.
On the next page, you can preview all your details pre-filled. All you have to do is ensure that they are correct.
Edit and Review Details
Personal Information
Go to the ‘Personal Info’ tab and check the pre-filled details. If you want to add or edit any information, you can make the changes and proceed.
Income Sources
Go to the ‘Income Sources’ tab. Here, your salary details are also pre-filled. Just review the details whether they are correct and edit if required. If you did not select the pre-fill option earlier, you could upload your Form 16 or 26AS PDF to fetch the salary details. Next, you can enter details of rental income or income from house property, other income, and capital gain
ClearTax has partnered with various brokerage firms to capture the capital gains from shares and mutual-fund-related transactions automatically. We support importing capital gains data directly from platforms like 5paisa and Paytm Money.
In the capital gains section, click on the relevant platforms
You will be redirected to a new tab where you can log in to your broker’s account, and after successful login, all your capital gains details will be fetched automatically.
If you are registered with other brokers then click on the button ‘Click here if you sold any assets’. Now, upload the capital gains report. To know how to extract them, click on ‘upload file’ and on the right, you can see the guides on how to download the report on all these platforms. Upload it and all your capital gains from shares and mutual funds are captured automatically.
Profit from Business or Profession
Now, enter the business income tab. Here, you will need to click ‘Add BSPL Income
Here, fill in the Balance sheet, P&L, depreciation, ICDS and other details if they are applicable.
Go back to the dashboard. In the ‘speculative income’ section, enter details of your income from speculative transactions like intra-day trading, etc. .
Once done, scroll down to fill in the income computation in Schedule BP and fill up the Schedule OI. Next, add your auditor details if tax audit is applicable to you. Then click on ‘Go to next’ to proceed to enter tax-saving details.
Under the ‘Deductions’ tab, review the investment details (say LIC, PPF, etc.) captured. If you want to add more tax-saving details, you can edit the fields and claim tax benefits here.
Watch out for the tax-saving tips that are prompted to you on the screen.
Tip: Do you have kids? Claim benefits on their tuition fees under Section 80C.
Also, interests up to Rs 10,000 earned on your savings account maintained with a bank, post office, or co-operative society can be claimed as a deduction under 80TTA.
Enter the Tax Paid Details
If you scroll down below, you can enter taxes-paid details. Add tax payments already made if you have any non-salary income, say, interest or freelance income.
You can also add these details by uploading Form 26AS. In the case of uploading Form 26AS, only the TDS details get auto-populated and not the income, hence required to enter the income details in the respective place.
You can claim relief under Section 89 of the Income Tax Act. Also, enter the self-assessment tax paid for the relevant financial year under the tab ‘Self tax payments’.
Schedule AL and Other Disclosures
Now, if any of the conditions mentioned in the ‘Other Disclosures’ section apply to you, fill in those relevant sections.
Say your total income after deductions exceed Rs 50 lakh, you must fill in the schedule AL. Here, fill in details of all your assets and liabilities if they were not included in the balance sheet earlier. If you are a non‐resident or ‘resident but not ordinarily resident’, only the details of assets located in India are to be mentioned.
Likewise, in the current account deposits section, you will have to add the total amount deposited if you have deposited more than ₹1 crore in FY 21-22
View Summary, Compare, and Switch Tax Regimes
On the next page, you can also view the computation of your income tax. It will compare your tax under both old and new tax regimes.
The ClearTax portal allows you to switch the tax regime at this stage. You can also view and download your tax report.
Scroll down below, and you can go through all the details filled by you in each section and edit any of these items. To proceed, click on ‘File tax’.
Self-Declaration
You will need to declare that all the information in return, including the amounts, is correct. This step ensures that you have double-checked the information for its correctness and authorised ClearTax to file ITR on your behalf. To proceed, check the box and ‘Submit Declaration’.
Pay Taxes
You can view your tax due status in the computation. If any tax is due to be paid, you must pay the same and enter the challan details to proceed to e-file. Read this guide to know how to pay your tax dues.
If you see ‘Refund’ or ‘No Tax Due’ here, you can proceed to e-file. You will get an acknowledgement number on the next screen.
Make Payment
You can now make the payment for submitting your return through the Clear (previously ClearTax) portal. To do the same, click on ‘Proceed to e-File’.
On completion, you will see a success message as shown below.
ITR Submitted Successfully
If the ITR is successfully submitted to the income tax department, you can see the success message below.
e-Verify
Once your return is filed, e-verify your income tax return.
Important: Uploading ITR alone does not complete the return filing process. Verification of return is important to complete the return filing process.
What is the structure of the ITR 3 Form for AY 2022-23?
ITR-3 is divided into:
- Part A
- Part A-GEN: General information and Nature of Business
- Part A-BS: Balance Sheet as of March 31, 2021, of the Proprietary Business or Profession
- Part A- Manufacturing Account: Manufacturing Account for the financial year 2020-21
- Part A- Trading Account: Trading Account for the financial year 2020-21
- Part A-P&L: Profit and Loss for the financial Year 2020-21
- Part A-OI: Other Information (optional in a case not liable for audit under Section 44AB)
- Part A-QD: Quantitative Details (optional in a case not liable for audit under Section 44AB)
After this, there are the following schedules.
- Schedule-S: Computation of income under the head Salaries.
- Schedule-HP: Computation of income under the head Income from House Property
- Schedule BP: Computation of income from business or profession
- Schedule-DPM: Computation of depreciation on plant and machinery under the Income-tax Act
- Schedule DOA: Computation of depreciation on other assets under the Income-tax Act
- Schedule DEP: Summary of depreciation on all the assets under the Income-tax Act
- Schedule DCG: Computation of deemed capital gains on the sale of depreciable assets
- Schedule ESR: Deduction under section 35 (expenditure on scientific research)
- Schedule-CG: Computation of income under the head Capital gains.
- Schedule 112A: Details of Capital Gains where section 112A is applicable
- Schedule 115AD(1)(b)(iii)Proviso: For Non-Residents Details of Capital Gains where section 112A is applicable
- Schedule-OS: Computation of income under the head Income from other sources.
- Schedule-CYLA-BFLA: Statement of income after set off of current year’s losses and Statement of income after set off of unabsorbed loss brought forward from earlier years.
- Schedule-CYLA: Statement of income after set off of current year’s losses
- Schedule BFLA: Statement of income after set off of unabsorbed loss brought forward from earlier years.
- Schedule CFL: Statement of losses to be carried forward to future years.
- Schedule- UD: Statement of unabsorbed depreciation.
- Schedule ICDS – Effect of Income Computation Disclosure Standards on Profit
- Schedule- 10AA: Computation of deduction under section 10AA.
- Schedule 80G: Statement of donations entitled for deduction under section 80G.
- Schedule RA: Statement of donations to research associations etc. entitled for deduction under section 35(1)(ii) or 35(1)(iia) or 35(1)(iii) or 35(2AA)
- Schedule- 80IA: Computation of deduction under section 80IA.
- Schedule- 80IB: Computation of deduction under section 80IB.
- Schedule- 80IC/ 80-IE: Computation of deduction under section 80IC/ 80-IE.
- Schedule VI-A: Statement of deductions (from total income) under Chapter VIA.
- Schedule AMT: Computation of Alternate Minimum Tax Payable under Section 115JC
- Schedule AMTC: Computation of tax credit under section 115JD
- Schedule SPI: Statement of income arising to spouse/ minor child/ son’s wife or any other person or association of persons to be included in the income of the assessee in Schedules-HP, BP, CG and OS.
- Schedule SI: Statement of income which is chargeable to tax at special rates
- Schedule-IF: Information regarding partnership firms in which assessee is a partner.
- Schedule EI: Statement of Income not included in total income (exempt incomes)
- Schedule PTI: Pass through income details from a business trust or investment fund as per section 115UA, 115UB
- Schedule TPSA: Secondary adjustment to transfer price as per section 92CE(2A)
- Schedule FSI: Details of income from outside India and tax relief
- Schedule TR: Statement of tax relief claimed under section 90 or section 90A or section 91.
- Schedule FA: Statement of Foreign Assets and income from any source outside India.
- Schedule 5A: Information regarding apportionment of income between spouses governed by Portuguese Civil Code
- Schedule AL: Asset and Liability at the end of the year(applicable where the total income exceeds Rs 50 lakhs)
- Schedule GST: Information regarding turnover/ Gross receipt reported for GST
- Part B-TI: Computation of Total Income.
- Part B-TTI: Computation of tax liability on total income.
- Verification
How do I file my ITR-3 Form?
A taxpayer has to compulsorily file ITR-3 online. The ITR-3 can be filed online/electronically:
- By furnishing the return electronically under a digital signature
- By transmitting the data electronically and then submitting the verification of the return in Form ITR-V
If you submit your ITR-3 Form electronically under digital signature, the acknowledgement will be sent to your registered email id. You can also choose to download it manually from the income tax website. You are then required to sign it and send it to the Income Tax Department’s CPC office in Bangalore within 120 days of e-filing. Remember that ITR-3 is an annexure-less form i.e. you do not have to attach any documents when you send it.
How do you send your ITR-V to the CPC Office?
We have a guide to help you print and send your ITR-V to the CPC office.
How to fill out the verification document?
While filling up the data in the income tax return, a taxpayer should also fill up the verification. Please note that any person making a false statement in the return or any of the accompanying schedules shall be liable to be prosecuted under section 277 of the Income-tax Act, 1961 and on conviction be punishable under that section with rigorous imprisonment and with fine.
Business Codes for ITR Forms
| Sector | Sub‐Sector | Code |
|---|---|---|
| AGRICULTURE, ANIMAL HUSBANDRY & FORESTRY | Growing and manufacturing of tea | 1001 |
| Growing and manufacturing of coffee | 1002 | |
| Growing and manufacturing of rubber | 1003 | |
| Market gardening and horticulture specialties | 1004 | |
| Raising of silk worms and production of silk | 1005 | |
| Raising of bees and production of honey | 1006 | |
| Raising of poultry and production of eggs | 1007 | |
| Rearing of sheep and production of wool | 1008 | |
| Rearing of animals and production of animal products | 1009 | |
| Agricultural and animal husbandry services | 1010 | |
| Soil conservation, soil testing and soil desalination services | 1011 | |
| Hunting, trapping and game propagation services | 1012 | |
| Growing of timber, plantation, operation of tree nurseries and conserving of forest | 1013 | |
| Gathering of tendu leaves | 1014 | |
| Gathering of other wild growing materials | 1015 | |
| Forestry service activities, timber cruising, afforestation and reforestation | 1016 | |
| Logging service activities, transport of logs within the forest | 1017 | |
| Other agriculture, animal husbandry or forestry activity n.e.c | 1018 | |
| FISH FARMING | Fishing on commercial basis in inland waters | 2001 |
| Fishing on commercial basis in ocean and coastal areas | 2002 | |
| Fish farming | 2003 | |
| Gathering of marine materials such as natural pearls, sponges, coral etc. | 2004 | |
| Services related to marine and fresh water fisheries, fish hatcheries and fish farms | 2005 | |
| Other Fish farming activity n.e.c | 2006 | |
| MINING AND QUARRYING | Mining and agglomeration of hard coal | 3001 |
| Mining and agglomeration of lignite | 3002 | |
| Extraction and agglomeration of peat | 3003 | |
| Extraction of crude petroleum and natural gas | 3004 | |
| Service activities incidental to oil and gas extraction excluding surveying | 3005 | |
| Mining of uranium and thorium ores | 3006 | |
| Mining of iron ores | 3007 | |
| Mining of non‐ferrous metal ores, except uranium and thorium ores | 3008 | |
| Mining of gemstones | 3009 | |
| Mining of chemical and fertilizer minerals | 3010 | |
| Mining of quarrying of abrasive materials | 3011 | |
| Mining of mica, graphite and asbestos | 3012 | |
| Quarrying of stones (marble/granite/dolomite), sand and clay | 3013 | |
| Other mining and quarrying | 3014 | |
| Mining and production of salt | 3015 | |
| Other mining and quarrying n.e.c | 3016 | |
| MANUFACTURING | Production, processing and preservation of meat and meat products | 4001 |
| Production, processing and preservation of fish and fish products | 4002 | |
| Manufacture of vegetable oil, animal oil and fats | 4003 | |
| Processing of fruits, vegetables and edible nuts | 4004 | |
| Manufacture of dairy products | 4005 | |
| Manufacture of sugar | 4006 | |
| Manufacture of cocoa, chocolates and sugar confectionery | 4007 | |
| Flour milling | 4008 | |
| Rice milling | 4009 | |
| Dal milling | 4010 | |
| Manufacture of other grain mill products | 4011 | |
| Manufacture of bakery products | 4012 | |
| Manufacture of starch products | 4013 | |
| Manufacture of animal feeds | 4014 | |
| Manufacture of other food products | 4015 | |
| Manufacturing of wines | 4016 | |
| Manufacture of beer | 4017 | |
| Manufacture of malt liquors | 4018 | |
| Distilling and blending of spirits, production of ethyl alcohol | 4019 | |
| Manufacture of mineral water | 4020 | |
| Manufacture of soft drinks | 4021 | |
| Manufacture of other non‐alcoholic beverages | 4022 | |
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