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ITR 3 form is now applicable to business professionals for filing their tax returns. Understand the changes made to the filing of ITR-3 and how to file it.

ITR 3 – Income Tax Filing For Business Professionals

Last Update Date : February 16, 2018

The only thing in life you can depend on is Change.  Accept that changes happen and the stress arising from changing from old methods to the newer ones, disappear.  Recently, the Income Tax Department renamed ITR Form 4 to ITR Form 3.  The filing of ITR 3 form, for business professionals, is applicable only for AY 2017-18.  If you had filed ITR-3 during FY 2015-16, then you will need to file ITR-2, from hereon.  The procedure to file ITR form 3 is not complex, once understood.

What is ITR 3 Form used for?

It is the form to be used by individuals or HUF’s deriving income from proprietary business or profession.  It is to be used from Assessment Year  2017-18 onwards by the mentioned groups to file their returns.

Who is eligible to file form ITR 3 for AY 2017-18?

It is mandatory for you to furnish the return electronically if you fall in any of the following categories:

  • The resident assessee has assets outside India or if, the signing authority is located outside India.
  • Assessees with total income exceeding Rs.5 lakhs
  • Assessees claiming relief under Section 90, 90A or 91 for whom Schedule FSI and Schedule TR are applicable

[ Not sure which ITR to File? Then read this detailed guide. ]

Who Does not Have to File ITR 3?

As, ITR-3 form is used for business returns, any individual filing his/her personal income tax return, ie. Salaried employee or filing using ITR 1 form, does not have to file ITR-3.

Difference Between ITR 3 & ITR 4?

ITR-3 form is simply the old ITR-4 of AY 2016-17 form, which will be  used from AY 2017-18.

Filing ITR 3 - Business Tax Return

How to file ITR Form 3?

You can file ITR-3 form either via offline method or online method.

Filing ITR-3 using Offline Method:

  • By furnishing the return in a physical paper form. At the time of submission of the paper return, the Income Tax Department will issue you an acknowledgement.
  • With the provided bar-coded return.

Conditions for Filing ITR 3 through Offline Method:

You can file this return in paper form with the Income Tax Department only if you are:

  • Over 80 years of age; or
  • Individual and HUF with total income less than Rs.5 lakhs who has no refund claims

Note: You should file only one copy of the return form.


Filing ITR-3 using Online Method:

You can file ITR-3 Form with the Income Tax Department in the below mentioned ways:

  • Submitting it under your digital signature.
  • After sending the data electronically, you can submit the verification of your return in From ITR-V.
  • Verifying the submitted return(ITR-V) electronically with e-verification code (EVC).

For individuals in the following categories, you must file your return electronically:

  • Income of assessee above Rs 5 lakh
  • If assets outside of India are held by the resident assessee or the signing authority is outside India
  • If assesee is claiming exemption u/s 90/90A or 91 and schedule FSI & TR are applicable


ITR3 Form Sample Format

Download ITR 3 Form in PDF Format by clicking the image above:

Major Changes to ITR Form 3 for AY 2017-18

Changes in ITR 3 Details
As per schedule AL, details of assets and liabilities of individual/HUf with income exceeding Rs 50 lakh Costs of immovable(jewellery, shares, cash balance, etc.) assets/properties
Chartered Accountant/Firm Registration number Provide registration number of chartered accountant auditing your ITR form.
Aadhaar Number As per section 139AA, taxpayers must quote aadhaar number or aadhaar enrolment number while filing ITR.
Explanations of unexplained income and income from dividends Unexplained credits from investments and dividends over Rs. 10 lakh, need to be furnished under schedule OS.
Details of cash deposited during demonetisation Cash deposits of Rs 2 lakh and more made during 9th November 2016 – 30th December 2016, in bank accounts or loan accounts need to be reported.

Structure of ITR Form 3

This return form has the following components:

Part A – 5 sub-divisions:

  • Part A-GEN: Basic information about individual and business (ex: PAN, Aadhaar etc.)
  • Part A-BS: As of 31st March 2017, the balance sheet
  • Part A-P&L: The Profit/Loss for FY 2016-17
  • Part A-OI: Miscellaneous information which is optional and not liable for audit u /s 4AB
  • Part A-QD: Numerical details about the principal traded item of goods traded, which is optional and not liable for audit u/s 44AB

Part B – Contains details of income and total taxes due and is followed by:

  • Statutory verification
  • Details of any third party used for preparing taxes, if applicable

34 Schedules

  • Schedule-S: The calculation of income under head salaries
  • Schedule-HP: House income calculations
  • Schedule-BP: Profit/gains computations from business or profession
  • Schedule-DPM:  Values of plan and machinery depreciation
  • Schedule DOA: Depreciation values of other assets
  • Schedule DEP: Total value of depreciated assets
  • Schedule DCG: Capital gains on depreciated assets
  • Schedule ESR: Section 35 deductions (scientific research expenses)
  • Schedule-CG: Total of capital
  • Schedule-OS: Other income sources data
  • Schedule-CYLA: Income statement after losses set off
  • Schedule-BFLA: Income statement after losses set off, which were brought forward from previous years.
  • Schedule-CFL: Losses to be carried forward for future use
  • Schedule-UD: Details of depreciation that is unabsorbed
  • Schedule-ICDS: Income calculated by disclosure standards in profits.
  • Schedule-10A: Details of deductions u/s 10A
  • Schedule-10AA: Details of deductions u/s 10AA
  • Schedule-80G: Donation details of eligible deductions u/s 80G
  • Schedule-80IA: Deductions u/s 80IA.
  • Schedule-80IB: Deductions u/s 80IB.
  • Schedule-80IC/80-IE: Deductions u/s 80IC/80-IE.
  • Schedule-VI-A: Deductions of total income under Chapter VIA.
  • Schedule AMT: Alternate minimum tax payable details u/s 115JC
  • Schedule AMTC: Tax credits u/s 115JD.
  • Schedule SPI: Income arising from spouse/ minor child/ son’s wife or any other persons included in the income of the assessee in Schedules-HP, BP, CG and OS.
  • Schedule SI: Income chargeable at special tax rates
  • Schedule-IF: Partnership details if any
  • Schedule EI: Details of exempt income
  • Schedule PTI: Details of income from Investments and/or Business trust u/s 115UA/B
  • Schedule-FSI: Income outside of India.
  • Schedule TR: Tax relief claimed u/s 90/90A or 91
  • Schedule FA: Details of foreign income and assets
  • Schedule-5A: As per Portuguese civil code, details of distribution of income between spouses
  • Schedule AL: Assets and liabilities by the end of the year, if exceeding Rs 50 lakh

Sending your ITR-V to the CPC Office, Bangalore?

If you e-file your return, and wish to mail it to CPC Bangalore, print out the form from your email and sign it and send it to the CPC office in Bangalore.

The preparation and filing of ITR Form 3 is a change that can be taxing, however, the experts at H&R Block can help you every step of the way, so that the transition is smooth and effortless.

Not sure how to file your Business Tax Return? Let H&R Block help you file your taxes.
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