Your CA has asked you to fill the form ITR-3 to file your income tax returns. And these questions have started to plague your mind — what is ITR-3? How to file ITR-3? And which website lets you do an ITR-3 download? Before you get lost in the sea of information, we have collated here for you the answers to all the important questions on ITR-3.
Income Tax Returns or any ITR form allows taxpayers to fill information pertaining to their income and the applicable tax with the Income Tax Department. There are seven types of ITR forms from ITR-1 to ITR-7.
Specifically, the ITR-3 form for income tax returns applies to Indian individuals and HUF (Hindu Undivided Family) who earn their income from gains and profits from their profession or business. The taxpayer may be a partner in a firm or business but doesn’t run it under proprietorship.
The ITR 3 Form can be used by Hindu Undivided Family (HUF) and individuals who run a business or carry a profession. The list below mentions the type of people who can fill the ITR 3 Form.
Note:
The final date to file returns under ITR-3 for taxpayers awaiting a tax audit is 31st October 2020, for the assessment year 2020-21 (i.e. the Financial year 2019-20). The audit report should be submitted by 30th September 2020.
It has been proposed to increase the minimum limit for tax audits from 1 crore INR to 5 crore INR for the financial year 2020-21 (the assessment year 2021-22) if the cash receipts of the taxpayer do not exceed 5% of the turnover or gross receipts. Further, the cash payments should not be greater than 5% of the total payments.
The ITR-3 form should be submitted online with the Income Tax Department. The government strictly advocates online e-filing of ITR-3 form. However, the verification of the ITR 3 form can be done in 3 ways:
Here are some key points to note when you fill the ITR-3 form online:
The Income Tax Department has advised all assessees to follow a particular sequence while filling out the ITR-3 form. The sequence is as follows:
This sequence has to be followed to ensure minimum errors and a smooth form filling process.
When filling the details in the ITR-3 form electronically, the individual should also fill up the verification document. Kindly note that if an individual makes a false statement in any of the two parts and the 23 schedules, they are liable to be prosecuted under Section 277 of the Income Tax Act, 1961. If found guilty and convicted, the offence is punishable with rigorous imprisonment and fine.
Only individuals who fall in the following criteria are allowed to file the ITR-3 Form offline.
Individuals who fall into this criteria are eligible to submit their ITR 3 Form in barcoded format or in paper form.
The ITR-3 Form can be easily downloaded from the official website of the income tax department. Click here to download it. The ITR-3 form is spread across two parts and 23 schedules:
By following these guidelines, you can successfully fill your ITR-3 form offline and claim income tax returns. Make sure you fill your details in the appropriate schedule that matches your criteria. Seek the assistance of an expert CA if required while filing ITR-3.
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Thank you for the very useful information
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