ITR 3

The ITR 3 form is required to file for an income tax return by those who are a member of a Hindu Undivided Family and a partner at a Partnership Firm. The mode of income for such an individual can be in the form of salary, bonus, interest, etc.

What is ITR 3?

There are various forms that the assessee uses while filing their income tax returns. ITR 3 is the form used by the individuals and Hindu Undivided Families who are registered as ‘Partners’ in a firm. This form is not applicable to the proprietors of the firm. This is applicable for the professionals but in a partnership profession. The partner must be earning income in the form of interest, salary, bonus, commission, etc.

Who can use ITR 3?

ITR 3 can be filed by:

  • Individual or Hindu Undivided Family who is a partner in a firm
  • Where the income chargeable to income includes income in the form of interest, salary, bonus, commission, remuneration, due to, received by him from such firm.

ITR 3 Form Structure

Part A of ITR-3

Part A of the form is divided into the below-mentioned sections:

  • Part A-GEN: Personal information, filing status, audit information, and nature of business must be entered in this section.
  • Part A-BS: Sources of funds, application of funds, and no-account case must be entered.
  • Part A-Manufacturing Account: Details of the manufacturing account must be entered.
  • Part A-Trading Account: The credits to the trading account must be provided.
  • Part A-P & L: The profit and loss account details must be provided.
  • Part A-OI: Any other information will need to be provided.
  • Part A-QD: Quantitative details will need to be provided.

Schedules of ITR-3

The below-mentioned schedules must be entered in the ITR-3 Form:

  • Schedule S: The amount of salary that you earn.
  • Schedule HP: Any income that you make from house property.
  • Schedule BP: Details about the income that you make from your profession or business must be entered.
  • Schedule DPM: Depreciation on Plant and Machinery.
  • Schedule DOA: Any depreciation on other assets.
  • Schedule DEP: Summary of the depreciation on assets.
  • Schedule DCG: Deemed Capital Gains on sale of depreciable assets.
  • Schedule ESR: Any expenditure that is made on scientific research.
  • Schedule CG: Capital Gains.
  • Schedule 112A: Various information on Capital Gains that must be paid under Section 112A must be provided.
  • Schedule 115 AD: This section must be filled by non-residents.
  • Schedule OS: Any income that is generated from other sources.
  • Schedule CYLA: Information on the income after a set-off has been made for the current year’s losses.
  • Schedule BFLA: Information on the income that has been set-off after the losses of earlier years have been brought forward.
  • Schedule CFL: Any information on the losses that must be carried forward to the future years.
  • Schedule UD: Any unabsorbed depreciation and allowance that comes under Section 35 (A).
  • Schedule ICDS: The outcome of the Income Computation Disclosure Standards on profit.
  • Schedule 10AA: Any deductions under Section 10AA.
  • Schedule 80G: Any donations that are entitled for deductions under Section 80G.
  • Schedule RA: Any donations that are made towards research associations. The deductions must fall under Section 35 (I) (ii), Section 35 (I) (iia), or Section 35 (2AA).
  • Schedule 80-IA: Any deductions under Section 80IA.
  • Schedule 80-IB: Any deductions under Section 80B.
  • Section 80-IC: Also known as Section 80-IE. Any deductions that come under Section 80-IC and Section 80-IE must be entered.
  • Schedule VI-A: Any deductions that come under Section VI-A must be entered.
  • Schedule AMT: Any Alternate Minimum Tax that must be paid under Section 115JC.
  • Schedule AMTC: Any tax that must be credited under Section 115JD.
  • Schedule SPI: Income of minor child, spouse, etc., that can be included in the income of the taxpayer under Section 64.
  • Schedule SI: Tax at special rates.
  • Schedule IF: Any information in regard to a partnership firm that you are a partner at.
  • Schedule EI: Any income that is exempt from tax.
  • Schedule PTI: Pass through details of the income.
  • Schedule-TPSA: Any information in regard to tax on secondary adjustments under Section 92CE (2A).
  • Schedule FSI: Any income that has been generated outside India.
  • Schedule TR: Any tax relief that has been claimed for tax paid outside India.
  • Schedule FA: Foreign asset details and any income that is generated from outside India.
  • Schedule 5A: Information in regard to any income between spouses who are governed by the Portuguese Civil Code.
  • Schedule AL: Your assets and liabilities that are available by the end of the year. This section is applicable only if your income is more than Rs.50 lakh.
  • Schedule DI: Investment details under various sections.

Part B of ITR-3

The different sections that come under Part B are mentioned below:

  • Part B-TI: Computation of the total income.
  • Part B-TTI: Computation of the tax that must be paid on the total income.

Verification:

You must verify all the details that have been provided in the form.

How to file ITR 3?

The above sections will have to be addressed in the form. Please note the following:

  • The schedule that is not applicable to you, just put ‘----NA----‘.
  • If there is no figure to denote, put Nil.
  • If there is a negative balance and you are writing it against a profit column, then put ‘-‘sign before the figure.
  • Round off the figures to the nearest one rupee.
  • The total income or loss payable must be rounded off the nearest multiple of Rs.10.
  • Fill out the Sections in Part A, then move on to fill the 23 Schedules in Part B. Finally verify the document.

The ITR 3 can be filed in two ways:

  • Offline: You can furnish the return in a paper form and through a bar-coded return
  • Online: You can furnish the return electronically using a digital signature. The data can be transmitted after submitting the verification of the return.
  • Assessee has to print out two copies of the ITR form when he is filing the return online.

The returns have to be filed electronically when:

  • The resident assessee has assets outside India or if the signing authority is located outside India.
  • Assessees with more than Rs.5 lakh total income are required to furnish the returns electronically.
  • Assessees claiming relief under Section 90, 90A or 91 for whom Schedule FSI and Schedule TR applies must file the returns electronically.

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