ITR-3 Form – What is ITR3 & How to file ITR-3,A comprehensive guide to understanding the ITR-3 Form

This page contains ITR-3 entry details for FY 2020-21 (AY 2021-22), FY 2019-20 (AY 2020-21) and FY 2018-19 (AY 2019-20)

Latest Update

Union Budget 2021 Outcome:

The corporate tax audit limit has been extended from Rs. 5 crores up to Rs. 10 pounds A.Y. 2021-22 where digital transactions are not less than 95 percent of total jobs.

Updated on:  
25 min read

1. What is the ITR-3 Form?

ITR 3 applies to individuals and HUFs with income from profits and profits from business or employment. People who earn money from the following sources are eligible to submit ITR 3:

  • Doing business or specialization (both tax and non-audited cases)
  • Reimbursements may include income from Household assets, Income / Pensions, capital gains and income from other sources

Note:

  • The deadline for submitting ITR-3 in the event of a taxpayer being paid for tax audit has been extended to 15 February 2022 from 31 October 2021 to AY 2021-22 (FY 2020-21). The deadline for submitting a tax audit report is extended to 15 January 2022.
  • The Rs 1 crore tax audit limit is proposed to be increased to Rs 5 crore from AY 2020-21 (FY 2019-20) if taxpayers' cash receipts are limited to 5% of major receipts or profits, and if taxpayer payments estimated at 5% of total payments.

2. What is the structure of the ITR-3 Form for AY 2021-22?

ITR-3 is divided into:
Part A

  • Part A-GEN: General Information and Business Type
  • Part A-BS: Evaluation Sheet from March 31, 2021, for Proprietary Business or Profession
  • Part A- Production Account: Production 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 (preferably in the case of non-binding audit under Section 44AB)
  • Part A-QD: Measurement Details (preferably in the case of non-accounting audits under Section 44AB)

After this, there are the following schedules.
  • Program-S: Calculation of income under head income.
  • Program-HP: Head Income Calculation Revenue from Real Estate
  • Schedule BP: Calculation of income from a business or workplace
  • Schedule-DPM: Calculation of depreciation of machinery and equipment under the Income Tax Act
  • Schedule DOA: Calculation of depreciation of certain assets under the Income Tax Act
  • Schedule DEP: Summary of depreciation of all assets under the Income Tax Act
  • Schedule DCG: Calculation of profits that appear to be derived from the sale of declining assets
  • Schedule ESR: Drawing under section 35 (costs in scientific research)
  • Program-CG: Calculation of income under Capital capital gains.
  • Schedule 112A: Details of Major Benefits where section 112A applies
  • Schedule 115AD (1) (b) (iii) Provision: For Non-Profit Citizens Details of Section 112A
  • OS-OS: Head Income Calculation Revenue from other sources.
  • Schedule-CYLA-BFLA: Statement of income after the suspension of losses for this year and Statement of income after the suspension of unauthorized losses submitted in previous years.
  • Program-CYLA: Statement of income after the current set of losses
  • Program BFLA: Statement of income after the suspension of unauthorized losses submitted in previous years.
  • Schedule CFL: Statement of losses to be continued for years to come.
  • Schedule- UD: Unwritten descent statement.
  • Schedule ICDS - Result of Disclosure Accounting Standards for Profits
  • Schedule- 10AA: Calculation of deductions under section 10AA.
  • Schedule 80G: Statement of donations entitled to deductions under section 80G.
  • Schedule RA: Statement of contributions to research organizations etc.
  • Schedule- 80IA: Calculation of deductions under section 80IA.
  • Schedule- 80IB: Calculation of deductions under section 80IB.
  • Program- 80IC / 80-IE: Calculation of deductions under section 80IC / 80-IE.
  • Schedule VI-A: Statement of deduction (from gross salary) under Chapter VIA.
  • Schedule AMT: Calculation of the Minimum Tax payable under Section 115JC
  • Schedule AMTC: Calculation of tax debt under section 115JD
  • Schedule SPI: A statement of income from the spouse / child of the child / young son or other person or organization that will be included in the income of the beneficiary in Schedules - HP, BP, CG and OS.
  • Schedule SI: Statement of taxable income at special rates
  • Schedule-IF: Information relating to co-operative firms where one considers a partner.
  • Program EI: Income Statement is not included in total income (exempt)
  • Schedule PTI: Transfer income information from a business fund or investment fund in terms of section 115UA, 115UB
  • Schedule TPSA: Second Amendment Adjustment in terms of section 92CE (2A)
  • FSI program: Details of income from outside India and tax assistance
  • Schedule TR: Statement of tax relief required under section 90 or section 90A or section 91.
  • FA Program: Statement of Foreign Exports and Revenue from any source outside India.
  • Schedule 5A: Details relating to the distribution of income between spouses subject to the Civil Civil Code
  • Schedule AL: Assets and Payments at year end (applicable when total amount exceeds Rs 50 lakhs)
  • GST Program: Profit-related information / Complete receipt reported for GST
  • Part B-TI: Complete accounting.
  • Part B-TTI: Calculation of tax debt on gross income.
  • Verification

3. What is the structure of the ITR-3 Form for AY 2020-21?

ITR-3 is divided into:
Part A

  • Part A-GEN: General Information and Business Type
  • Part A-BS: Evaluation Sheet from March 31, 2020, for Proprietary Business or Profession
  • Part A- Production Account: Production 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 (preferably in the case of non-binding audit under Section 44AB)
  • Part A-QD: Measurement Details (preferably in the case of non-accounting audits under Section 44AB)

After this, there are the following schedules.

  • Program-S: Calculation of income under head income.
  • Program-HP: Head Income Calculation Revenue from Real Estate
  • Schedule BP: Calculation of income from a business or workplace
  • Schedule-DPM: Calculation of depreciation of machinery and equipment under the Income Tax Act
  • Schedule DOA: Calculation of depreciation of certain assets under the Income Tax Act
  • Schedule DEP: Summary of depreciation of all assets under the Income Tax Act
  • Schedule DCG: Calculation of profits that appear to be derived from the sale of declining assets
  • Schedule ESR: Drawing under section 35 (costs in scientific research)
  • Program-CG: Calculation of income under Capital capital gains.
  • Schedule 112A: Details of Major Benefits where section 112A applies
  • Schedule 115AD (1) (b) (iii) Provision: For Non-Profit Citizens Details of Section 112A
  • OS-OS: Head Income Calculation Revenue from other sources.
  • Schedule-CYLA-BFLA: Statement of income after the suspension of losses for this year and Statement of income after the suspension of unauthorized losses submitted in previous years.
  • Program-CYLA: Statement of income after the current set of losses
  • Program BFLA: Statement of income after the suspension of unauthorized losses submitted in previous years.
  • Schedule CFL: Statement of losses to be continued for years to come.
  • Schedule- UD: Unwritten descent statement.
  • Schedule ICDS - Result of Disclosure Accounting Standards for Profits
  • Schedule- 10AA: Calculation of deductions under section 10AA.
  • Schedule 80G: Statement of donations entitled to deductions under section 80G.
  • Schedule RA: Statement of contributions to research organizations etc.
  • Schedule- 80IA: Calculation of deductions under section 80IA.
  • Schedule- 80IB: Calculation of deductions under section 80IB.
  • Program- 80IC / 80-IE: Calculation of deductions under section 80IC / 80-IE.
  • Schedule VI-A: Statement of deduction (from gross salary) under Chapter VIA.
  • Schedule AMT: Calculation of the Minimum Tax payable under Section 115JC
  • Schedule AMTC: Calculation of tax debt under section 115JD
  • Schedule SPI: A statement of income from the spouse / child of the child / young son or other person or organization that will be included in the income of the beneficiary in Schedules - HP, BP, CG and OS.
  • Schedule SI: Statement of taxable income at special rates
  • Schedule-IF: Information relating to co-operative firms where one considers a partner.
  • Program EI: Income Statement is not included in total income (exempt)
  • Schedule PTI: Transfer income information from a business fund or investment fund in terms of section 115UA, 115UB
  • Schedule TPSA: Second Amendment Adjustment in terms of section 92CE (2A)
  • FSI program: Details of income from outside India and tax assistance
  • Schedule TR: Statement of tax relief required under section 90 or section 90A or section 91.
  • FA Program: Statement of Foreign Exports and Revenue from any source outside India.
  • Schedule 5A: Details relating to the distribution of income between spouses subject to the Civil Civil Code
  • Schedule AL: Assets and Payments at year end (applicable when total amount exceeds Rs 50 lakhs)
  • GST Program: Profit-related information / Complete receipt reported for GST
  • Part B-TI: Complete accounting.
  • Part B-TTI: Calculation of tax debt on gross income.
  • Verification

4. How do I file my ITR-3 Form?

The taxpayer must file the ITR-3 online. ITR-3 can be filed online / electronically:

  • By providing a computer return under digital signature
  • By transferring the information electronically and submitting the return confirmation to Form ITR-V

If you submit your ITR-3 form electronically under a digital signature, the information will be sent to your registered email ID. You can also choose to download it manually from the Income Tax website. You must then sign and send it to the CPC office of the Income Tax Department in Bangalore within 120 days of e-filing. Remember that ITR-3 is an additional form which means you do not have to attach any documents when you submit 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.

5. Major Changes in ITR form 3 for AY 2021-22

Below changes are incorporated in the ITR-3 form of the FY 2020-21:

  • From 1 April 2020, the recipient will be required to pay tax. Appropriate sections such as section 10 (34), 10 (35), 115-O, etc. Amended by the Act. Accordingly, appropriate changes are included in the ITR form.
  • Taxpayers are granted exemption from payment of prepayment tax if the allocation is not available. Therefore, the ITR form allows taxpayers to submit quarterly details of the dividend income so that interest under section 234C is calculated on the basis of non-payment of prepaid taxes.
  • As amended by Finance Bill 2021 in section 44AB, the tax audit limit has been increased to rs.10 crores from Rs.5 crores if cash payments are less than 5% of total sales or profits. The corresponding amendment is included in the ITR form.
  • Schedule DI is filed with AY 2020-21 for claims for deductions or expenses incurred in the extended period (1 April 2020 to 30 June 2020) removed in the form of ITR of AY 2021-22.
  • Schedule 112A and Schedule 115AD (1) (b) (iii) circumstances are amended by an additional column to specify the nature of the shares transferred for revenue received under section 112A or section 115AD (1) (b) (iii) of the Income Tax Act. Schedules are also adjusted so that the taxpayer can provide information on the sale price, fair market value, and security acquisition costs.
  • Part-A General Information is amended when a taxpayer is offered an alternative to the new tax administration under section 115BAC.
  • A taxpayer who has money from a business or sector and who chooses another tax is required to state the date of completion of Form and 10-IE and his or her consent number.

6. Major Changes in ITR form 3 for AY 2020-21

  • The taxpayer must disclose
    • The amount deposited in excess of Rs 1 crore on current and bank accounts,
    • costs incurred in excess of Rs 2 lakh for outdoor visits
    • costs incurred in excess of Rs 1 lakh in electricity.
  • In the event that a person is a director of a company or holds unregistered shares of shares, the 'type of company' must also be disclosed.
  • If short-term or long-term profits are obtained through the sale of land or property or both, the buyer's details namely name, PAN or Aadhaar, a percentage of ownership and address must be provided.
  • A separate 112A schedule for the calculation of long-term capital gains in the sale of equity shares or business trust units to be paid to STT.
  • Under ‘income from other sources’, the taxpayer must provide details of ‘any other income’.
  • Details of the reduction against ‘income from other sources’ should be provided.
  • The ‘Schedule VI-A’ of the tax deduction is amended to include deductions under section 80EEA and section 80EEB.
  • In the case of a business fund or investment fund, details of 'income' and 'share' income should be provided.
  • Details of the tax on the second amendment to the transfer of price under section 92CE (2A).
  • Details of investment tax deduction applications or payments or expenses incurred between 1 April 2020 and 30 June 2020.
  • While providing bank account details, if a taxpayer selects multiple bank accounts for a refund loan, the tax department may select any refund processing account.

7. Major Changes in ITR form 3 for AY 2019-20

  • The residence status is divided into “India (Individual) Residence” status and “India Residence (HUF) status”. In the case of “Individual (Individual) Residence” status, 3 sub-categories - “Resident”, “Resident but Non-Resident” and “Non-Citizen”, mentioned requiring the person to mark a particular category. Taxpayers must state the number of days of stay in India; In addition, in the event of non-residency, a person is required to specify a residential capacity for the past year provided by the Taxpayer Identification Number to the relevant authorities. Also, in the event that a person is an Indian citizen or a person from India (PIO), the period of residence in India last year (days) and the period of residence in India within the last 4 years (days).
  • In the event that the ITR is filed by an observant attorney, additional information about the competent attorney's attorney (optional on the withdrawal provided) should be provided.
  • Each taxpayer must provide details of the management held at any company in the past year, and state whether the shares are listed or not listed.
  • Each taxpayer must provide information on investments in unregistered shares and movements in that investment throughout the year.
  • Each Taxpayer partner of the Company must disclose the details of the name and PAN of the Partnership company.
  • Partners of cooperative firms as they oppose ITR 2 will have to submit their forms to ITR 3.
  • Details of the estimated revenue estimates under sections 44AD, 44ADA and 44AE.
  • Under Part A-OI, disclose the amount of unauthorized expenditure / s 14A.
  • Separation of all unpaid allowances and deductions under Schedule S - Income details from income.
  • In Schedule HP, under the details of the income from the asset, the PAN of the tenant in the event of a TDS debit receipt.
  • In the OS Schedule, under any other special levies, the taxpayer must provide details of each income specified in it, eg interest, income from units, etc. e.g. winning from lotteries, crossword puzzles, betting, etc
  • for the purpose of calculating interest under section 234C.
  • In the 80G schedule, the division of the contribution amount is to be deducted under section 80G into cash and other modes. Similar disclosures will be made under Schedule RA of contributions made to research organizations under section 35.
  • In Schedule VI-A, the introduction of section 80TTB for the detention of an adult citizen.
  • In the FA Schedule, details below, if held during the year: Foreign Savings Accounts (including interest-bearing) Foreign Savings Accounts (including interest-bearing) Foreign Equity and Debt Interest (including interest) Insurance contract foreign currency or withholding Annuity Contract (including interest-bearing)
  • In Schedule GST, Profits / Full Receipt are reported for GST

8. ITR 3 for AY 2018-19

ITR-3 is divided into:

  • Part A
  • Part A-GEN: General Information and Business Type
  • Part A-BS: Evaluation Sheet from March 31, 2017, for Proprietary Business or Profession
  • Part A-P&L: Profit and Loss for the 2016-17 Financial Year
  • Part A-OI: Other Information (preferably in the case of non-binding audit under Section 44AB)
  • Part A-QD: Measurement Details (preferably in the case of non-accounting audits under Section 44AB)
  • Part B: Framework for total income and tax rate in respect of total tax payable.
  • Verification
  • Tax Payments: Preliminary tax details, TDS, self-assessment tax.

After this, there are the following schedules.

  • Program-S: Calculation of income under head income.
  • Program-HP: Head Income Calculation Revenue from Real Estate
  • Schedule BP: Calculation of income from a business or workplace.
  • Schedule-DPM: Calculation of depreciation of machinery and equipment under the Income Tax Act
  • Schedule DOA: Calculation of depreciation of certain assets under the Income Tax Act
  • Schedule DEP: Summary of depreciation of all assets under the Income Tax Act
  • Schedule DCG: Calculation of profits that appear to be derived from the sale of declining assets
  • Schedule ESR: Drawing under section 35 (costs in scientific research)
  • Program-CG: Calculation of income under Capital capital gains.
  • OS-OS: Head Income Calculation Revenue from other sources.
  • Program-CYLA: Statement of income after the current set of losses
  • Program BFLA: Statement of income after the suspension of unauthorized losses submitted in previous years.
  • Schedule CFL: Statement of losses to be continued for years to come.
  • Schedule- UD: Unwritten descent statement.
  • Set ICDS - Outcome of Profit Disclosure Accounting Standards.
  • Schedule- 10AA: Calculation of deductions under section 10AA.
  • Schedule 80G: Statement of donations entitled to deductions under section 80G.
  • Schedule- 80IA: Calculation of deductions under section 80IA.
  • Schedule- 80IB: Calculation of deductions under section 80IB.
  • Program- 80IC / 80-IE: Calculation of deductions under section 80IC / 80-IE.
  • VIA Program: Statement of deduction (from gross salary) under Chapter VIA.
  • Schedule AMT: Calculation of the Minimum Tax payable under Section 115JC.
  • Schedule AMTC: Calculation of tax debt under section 115JD.
  • Schedule SPI: Income statement from spouse / child of the child / young son or other person or organization that will be included in the recognition fee in Schedules - HP, BP, CG and OS.
  • Schedule SI: Statement of taxable income at special rates
  • Schedule-IF: Information relating to co-operative firms where one considers a partner.
  • Program EI: Income Statement is not included in total income (exempt)
  • Schedule PTI: Transfer income information from a business fund or investment fund in terms of section 115UA, 115UB
  • FSI program: Details of income from outside India and tax assistance
  • Schedule TR: Statement of tax relief required under section 90 or section 90A or section 91.
  • FA Program: Export Statement.
  • Schedule 5A: Details relating to the distribution of income between spouses subject to the Civil Civil Code
  • Schedule AL: Assets and Payments at year end (applicable when total amount exceeds Rs 50 lakhs)

9. What is the structure of the ITR-3 Form for AY 2018-19?

Quoting of Aadhaar Number
Now, it is compulsory to state Aadhaar number on your refund or Aadhaar Enrollment ID when applying.
Declaration of the value of assets and liabilities by Individuals/HUF earning above Rs 50 lakhs in Schedule ‘AL’
Taxpayers are required to disclose the value of assets and liabilities if their total amount exceeds Rs. 50 lakhs and specify the cost of immovable property with details of address, jewelry, bullion, vehicles with details of moving goods, shares, bank and cash balance, etc.
Disclosure of unexplained income and Dividend Income

New fields have been added to the 'OS' system to declare undisclosed debt or investment and profits made from domestic companies in excess of Rs 10 lakhs. Such people cannot choose ITR 1 Sahaj.
Disclosure of GST related details
In the Profit and Loss Plan, GST-related information must be disclosed.
Limitation on claim for depreciation
A maximum limit of 40% is set for a decrease in all Schedule related to the decrease.
Partners filing of income tax return
Co-operative firms must complete tax returns on ITR 3 as compared to ITR 2
Option to select section 115H
In the General Details tab, the option to select section 115H (Indian who does not reside in any previous year, is assessed as an Indian resident in respect of income for any subsequent year) is added.

10. Major Changes in ITR form 3 for AY 2018-19

  • In the General Details tab, the option to select section 115H (Indian who does not reside in any previous year, is assessed as an Indian resident in respect of income for any subsequent year) is added.
  • In the Profit and Loss plan, GST-related information has been added to the 40% Declaration Limit on all Declaration-Related Schedules
  • Partners of cooperative firms as they oppose ITR 2 will have to submit their forms to ITR 3.

11. How to fill out the verification document?

While filling out the tax return details, the taxpayer must also complete the verification. Please note that anyone who makes a false statement to the company or to any of the related schedules will be subject to prosecution under section 277 of the Income-tax Act, 1961, and on conviction may be punished under this section with severe imprisonment and a fine.

Frequently Asked Questions

question_icon

I am an individual who has income from business and have opted for presumptive taxation. ITR 3 is applicable for me?

answer_icon

No, if you are opting for presumptive taxation of business or profession ITR3 is not applicable for you. ITR 4 will be applicable for you.


question_icon

ITR-3 is applicable for all assessee having a business income?

answer_icon

No, ITR-3 will apply to People or HUF with business and employment income that can be taxed under speculation tax.


CEO Krishna Gopal

Krishna Gopal Varshney is a Chartered Accountant by profession & entrepreneur by passion. He is the co-founder & CEO of Myitronline.com. Myitronline is amongst the top emerging startups of Asia and authorized ERI by the Income Tax Department. A dedicated and tireless Expert Service Provider for the clients seeking tax filing assistance and all other essential requirements associated with Business/Professional establishment. Connect to us and let us give the Best Support to make you a Success. ”

Krishna Gopal Varshney
Co-founder & CEO