How to File ITR 3 Online (2024)

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  1. Who should file ITR 3 for the assessment year 2023-24?
  2. Who cannot file ITR 3?
  3. Structure of ITR 3 Form
  4. How to file ITR 3 Form Online?
  5. How to file ITR 3 Form With Excel Utility?
  6. Major Recent Changes Made in ITR 3

ITR 3 is applicable to individuals and HUFs who have earned income from business or profession during the assessment year. You can file ITR 3 either by preparing online or through the excel utility available on the e-filing portal. This article is a complete guide to filing ITR 3 on the income tax e-filing portal.

Union Budget 2021 Update: The tax audit limit under section 44AB has been increased from Rs 5 crore to Rs 10 crore. The limit has been increased for taxpayers whose 95% of the business transactions are in a digital mode. Further, the taxpayers need to pay advance tax on dividend income only after a declaration of such dividends by the company.

The Income Tax Department has launched its new e-filing website on the 7th of June, 2021. This new portal will soon replace the existing portal www.incometaxindiaefiling.gov.in. With the main focus on a user-friendly e-filing experience for the taxpayers, the new portal ensures a quick and seamless ITR filing process. Currently, ITR-1 and ITR-4 (online and offline), and ITR-2 (offline) are available on the new portal. Other ITRs such as ITR-3, ITR-6, ITR-5, and ITR-7 will also be available. For the month of June 2021, the new ITR filing software will be free of cost for taxpayers. ITR will be immediately processed leading to a quick income tax refund. A single dashboard will represent all the tax-related interactions.

Who should file ITR 3 for the assessment year 2023-24?

  1. ITR 3 is applicable to any individual taxpayer or a HUF.
  2. An individual taxpayer or a HUF who has earned income from a proprietary business or by carrying profession during the financial year.
  3. The total income of such individual taxpayers or a HUF exceeds the maximum amount which is not chargeable to income tax. Such income is calculated before allowing deductions under Chapter VI-A of the Income-tax Act.

The amount not chargeable to income tax is different for each category of the taxpayer:

Category of TaxpayerAmount
Hindu Undivided Family (HUF) or an individual who is below the age of 60 years orRs 2,50,000
An individual, being resident in India, who is of the age of 60 years or more but below the age of 80 yearsRs 3,00,000
An individual, being resident in India, who is of the age of 80 years or moreRs 5,00,000

If the total income chargeable to tax does not exceed the basic exemption limit but any of the following conditions are satisfied, then the taxpayer needs to file ITR 3:

  1. The taxpayer holds the position of a director in a Company
  2. Taxpayer holds an Investment in unlisted equity shares at any point of time during the financial year
  3. The taxpayer is a partner in a firm and has income from the firm
  4. Deposit of amount or aggregates of amount exceeds Rs 1 crore in one or more current accounts held by the taxpayer
  5. The taxpayer incurs an expense for travel to a foreign country for yourself or any other person. The total amount of expense exceeds Rs. 2 lakhs
  6. The taxpayer incurs an expense on the consumption of electricity of an amount exceeding Rs. 1 lakh.
  7. You can also file income from salary or pension, house property, and other sources along with income from business and profession under ITR-3

Who cannot file ITR 3?

An individual taxpayer and HUF who is eligible to file ITR 1 Sahaj, ITR 2, or ITR 4 Sugam cannot file ITR 3. In such a case the assessee needs to file ITR 1 Sahaj, ITR 2, or ITR 4 Sugam as applicable according to the conditions.

Structure of ITR 3 Form

PART A- GeneralPersonal Info., Filing Status, Audit InfoDetails of Personal Information and filing status
Nature Of BusinessNature Of BusinessNature of business or profession, if more than one trade name
Part A – BSPart A-BSBalance Sheet as on 31st Day of March
(fill items 1 to 5 in a case where regular books of accounts are maintained, otherwise fill item 6)
Manufacturing AccountSchedule Manufacturing AccountManufacturing Account for the financial year
(fill items 1 to 3 in a case where regular books of accounts are maintained, otherwise fill items 61 to 64 as applicable)
Trading AccountSchedule Trading AccountPart A-Trading Account -Trading Account for the financial year
(fill items 4 to 12 in a case where regular books of accounts are maintained, otherwise fill items 61 to 64 as applicable)
Profit and LossPart A-P & LProfit and Loss Account for the previous year
(fill items 1 to 52 in a case where regular books of accounts are maintained, otherwise fill item 53)
Part A – OIPart A -OIOther Information (optional in a case not liable for audit under section 44AB)
Quantitative DetailsPart A-QDQuantitative details (optional in a case not liable for audit under section 44AB)
Schedule SSchedule SDetails of Salary
House PropertySchedule HPDetails of Income from House Property
BPSchedule BPComputation of income from business or profession
DPM – DOASchedule DPM, Schedule DOADepreciation on Plant and Machinery, Depreciation on other assets
DEP_DCGSchedule DEP, Schedule DCGSummary of depreciation on assets, Deemed Capital Gains on sale of depreciable assets
ESRSchedule ESRDeduction under section 35
CGSchedule CGDetails of income under the head Capital Gains
Schedule 112ASchedule 112ALTCG on sale of listed equity shares, equity-oriented mutual funds, and business trust
Schedule 115AD(1)(iii) provisoNon Resident Indian- LTCG on sale of listed equity shares, equity-oriented mutual funds, and business trust
OSSchedule OSIncome from other sources
CYLA – BFLASchedule CYLA, Schedule BFLADetails of Income after set-off of current years losses, Details of Income after Set off of Brought Forward Losses of earlier years
CFLSchedule CFLDetails of Losses to be carried forward to future Years
Unabsorbed DepreciationSchedule UDUnabsorbed depreciation and allowance under section 35(4)
ICDSSchedule ICDSEffect of Income Computation Disclosure Standards on profit
10AASchedule 10A, 10AA, 10B,10BDeduction under section 10A, Deduction under section 10AA
80GSchedule 80GDetails of donations entitled for deduction under section 80G
80DSchedule 80DDetails of health insurance for deduction under Section 80D
RASchedule 80RADetails of donations to research associations etc.
80Schedule80-IA,IB,ICDeductions under section 80-IA, Deductions under section 80-IB, Deductions under section 80-IC
VI-ASchedule VIADeductions under Chapter VI-A
SPI-SI-IFSchedule SPI, Schedule SI, Schedule IFThe income of specified persons (spouse, minor child, etc.) includable in the income of the assessee, Income chargeable to Income tax at special rates IB, Information regarding partnership firms in which you are a partner
AMTSchedule AMTComputation of Alternate Minimum Tax payable under section 115JC
AMTCSchedule AMTCComputation of tax credit under section 115JD
EISchedule EIDetails of Exempt Income (Income not to be included in Total Income)
PTISchedule PTIPass-Through Income details from business trust or investment fund as per section 115UA, 115UB
TPSASchedule TPSASchedule for Transfer Pricing Secondary Adjustment
FSISchedule FSIDetails of Income from outside India and tax relief
TR_FASchedule TR, Schedule FASummary of tax relief claimed for taxes paid outside India, Schedule FA Details of foreign assets
Sch 5ASchedule 5AInformation regarding apportionment of income between spouses governed by Portuguese Civil Code
ALSchedule ALAsset and Liability at the end of the year (other than those included in Part A – BS)
DISchedule DISchedule for Details of investment
GSTSchedule GSTInformation regarding turnover/ gross receipt reported for GST
Part B – TI TTIPart B-TI, Part B-TTIComputation of total income
ITTax PaymentsDetails of payments of Advance Tax and Self-Assessment Tax
TDSTax Payments(TDS1, TDS2, TDS3)Details of Tax Deducted at Source from SALARY, Details of Tax Collected at Source
VerificationVerificationVerification of the income tax return alternatives

How to file ITR 3 Form Online?

You can opt for the ‘Prepare and Submit Online’ option. You can prepare your income tax return online and submit it at the e-filing portal.

Follow the below-mentioned instructions to prepare and file ITR 3:

  • Go to the Income Tax e-Filing portal, www.incometaxindiaefiling.gov.in
  • Login to the e-Filing portal by entering user ID (PAN), Password, Captcha code and click ‘Login’. If you are a new user then you will have to first register on the income tax e-filing portal and then follow the instructions.
  • Click on the ‘e-File’ menu and select the ‘Income Tax Return’ option from the drop-down menu.
  • Your PAN will be auto-populated on the ‘Income Tax Return’ Page. Select ‘Assessment Year’ for which you need to file the ITR and ‘ITR Form Number as ITR 3′.
  • Select ‘Filing Type’ as ‘Original’. In case you are filing a revised return against an already filed original return then select ‘Revised Return’
  • Select ‘Submission Mode’ as ‘Prepare and Submit Online’ and continue.
  • Fill in the details of your income, deductions, exemptions, and investments. Add the details of your tax payments through TDS/ TCS, advance tax, and self assessment tax.
  • Fill every schedule carefully and save the draft to avoid any data loss. Click on the ‘Save Draft’ button periodically and save the ITR details as a draft.
  • The saved draft is available for 30 days from the date of saving the details. However, once you file the ITR or there is no change in the XML schema of the ITR, the draft will not be available.
  • Choose the Verification option under the ‘Taxes Paid and Verification’ schedule
  • You can verify the Income Tax Return through any of the following options:
  1. I would like to e-Verify
  2. I would like to e-Verify later within 120 days from the date of filing.
  3. I don’t want to e-Verify and would like to send a signed ITR-V through normal or speed post to “Centralized Processing Center, Income Tax Department, Bengaluru – 560500” within 120 days from the date of filing.
  • Click on the ‘Preview and Submit’ button to preview and verify all the details before finally submitting ITR 3.
  • Now, ‘Submit’ the ITR.

You can follow the following steps to proceed to E-verification on your return:

  • On Choosing ‘I would like to E-Verify option, you can e-verify through the following options. All you need to do is enter the EVC/OTP when asked for.
  1. EVC generated through bank ATM or Generate EVC option under My Account
  2. Aadhaar OTP
  3. Prevalidated Bank Account
  4. Prevalidated Demat Account
  • The EVC/OTP should be entered within 60 seconds else, the Income Tax Return (ITR) will be auto-submitted. You can verify the ITR later through your ITR login account. Just login and click on the ‘My Account > e-Verify Return’ option. You can also verify by sending a signed ITR-V to CPC, Bengaluru.

Check Out ITR 2 Form

How to file ITR 3 Form With Excel Utility?

You can either prepare the ITR online on the e-filing portal or prepare offline using an excel utility. Under both the options you will be submitting the ITR on the e-filing portal. Both the options have their own benefits for a taxpayer. Many taxpayers believe in preparing in an excel utility, taking a print out and then reviewing the entire ITR.

The income tax department releases the excel utility every year before the due date of filing ITR as per the updated Income Tax Act.

You can follow this instruction to file ITR 3 using an excel utility:

  • Visit the Income Tax e-Filing portal Downloads
  • Select the assessment year from the dropdown menu
  • Download the Microsoft Excel’ file form ITR 3
  • A zip file will be downloaded to your computer.
  • Extract the downloaded utility from the ZIP file.
  • Open the file and click on ‘enable content’
  • Now, click on ‘enable macros’.
  • Always remember the following instruction regarding the excel utility:
  1. Green cells are for data entry
  2. Red fields are mandatory to fill
  3. Do not use cut, and paste i.e. no CTRL X and CTRL V. You can paste any data.
  • The form has navigation options such as previous, calculate tax, validate, print, and help.
  • Add the details under each schedule. Validate each schedule by clicking on ‘validate’ to ensure you have not made any mistakes.
  • After validation of all schedules and calculate the total tax.
  • Generate and Save the XML
  • Login to the e-Filing portal by entering user ID (PAN), Password, Captcha code and click ‘Login’.
  • Click on the ‘e-File’ menu and select the ‘Income Tax Return’ option.
  • Your PAN will be auto-populated on the ‘Income Tax Return’ Page
  • Select ‘Assessment Year’, ‘ITR form Number’ as ITR 3
  • Select ‘Filing Type’ as ‘Original’. In case you are filing a revised return against an already filed original return then select ‘Revised Return’
  • Select ‘Submission Mode’ as ‘Upload XML’
  • Choose the appropriate Verification option in the ‘Taxes Paid and Verification’ tab

Lastly, follow the following steps to complete submission and E-verification:

  • You can verify the Income Tax Return through any of the following options:
  1. I would like to e-Verify
  2. I would like to e-Verify later within 120 days from the date of filing.
  3. I don’t want to e-Verify and would like to send signed ITR-V through normal or speed post to “Centralized Processing Center, Income Tax Department, Bengaluru – 560 500” within 120 days from the date of filing.
  • Click ‘Continue’
  • Attach the ITR XML file.
  • DSC as verification option, Attach the signature file generated from the DSC management utility.
  • Aadhaar OTP as verification option, Enter the Aadhaar OTP received in the mobile number registered with UIDAI.
  • EVC through Bank account, Demat account or Bank ATM as verification option, Enter the EVC received in the mobile number registered with Bank or Demat Account respectively.
  • The other two verification options, the ITR will be submitted but the process of filing the ITRs is not complete until it is verified. The submitted ITR should be e-Verified later by using the ‘My Account > e-Verify Return’ option or the signed ITR-V should be sent to CPC, Bengaluru.
  • Submit the ITR.

Major Recent Changes Made in ITR 3

  • The taxpayer must disclose the below transactions made during the financial year:
  1. Deposit of amount or aggregates of amount exceeds Rs 1 crore in one or more current accounts held by the taxpayer
  2. The taxpayer incurs an expense for travel to a foreign country for yourself or any other person. The total amount of expense exceeds Rs. 2 lakhs
  3. The taxpayer incurs an expense on the consumption of electricity of an amount exceeding Rs. 1 lakh.
  • An assessee who either holds the position of a director in a company or unlisted equity shares will have to declare the type of the company. The company in which he/ she holds the position of a director in a company or unlisted equity shares.
  • Declare the details of the buyer on sale the land, building, or both. The details must be provided in the case of a long-term capital gain as well as a short-term capital gain. The details of the buyer are name, address, PAN or Aadhaar, and percentage share of ownership.
  • Introduction of a separate section for calculation of LTCG on the sale of shares of a unit of a business trust wherein STT is applicable.
  • Under the schedule ‘Income From Other Sources,’ the taxpayer must disclose any deduction against such income and details of other income.
  • An amendment of ‘Schedule VI-A’ to include deduction under section 80EEA and section 80EEB.
  • The details of tax on secondary adjustments to transfer price under section 92CE(2A).
  • The details of deduction against investments made during the period 1 April 2020 to 30 June 2020.
  • A taxpayer can add the details of more than one bank account while filing ITR. The income tax department will on its own select the bank account for the purpose of an income tax refund.

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Posted on 24 Oct, 2023

How to File ITR 3 Online (9)

Last updated October 24, 2023

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How to File ITR 3 Online (2024)

FAQs

How to File ITR 3 Online? ›

Step 1: Visit the official e-filing portal of the Income Tax Department and log in with your PAN details and CAPTCHA code. Step 2: Locate 'e-File' in the menu and go to 'Income Tax Forms'. Select the assessment year as 2023-24 and 'ITR Form 3'. Following this, click on 'Continue'.

Can we file ITR 3 online? ›

This Return Form can be filed with the Income-tax Department electronically on the e- filingweb portal of Income-tax Department (www.incometaxindiaefiling.gov.in) [www.incometax.gov.in from 7-June-2021]and verified in any one of the following manners – (i) digitally signing the verification part, or (ii) authenticating ...

What is the rule for ITR 3? ›

Additionally, taxpayers can use the ITR Form 3 if their total income includes the following: Income from a single-house property or multiple-house property. Income from activities like lotteries, betting on races, and other legal forms of gambling as per Indian law. Income from short-term or long-term capital gains.

Can I file ITR 3 for presumptive income? ›

It is mandatory for taxpayers who have chosen to be subject to presumptive taxes under Sections 44AD, 44ADA, or 44AE to submit an ITR 4. You must file an ITR 4 since ITR 3 is only for people who earn money from their business or profession.

How to open ITR 3? ›

Your PAN will be auto-populated on the 'Income Tax Return' Page. Select 'Assessment Year' for which you need to file the ITR and 'ITR Form Number as ITR 3′. Select 'Filing Type' as 'Original'. In case you are filing a revised return against an already filed original return then select 'Revised Return'

Should I file ITR 2 or ITR-3? ›

ITR-3 is for individuals and HUFs who have income under the head "profits or gains of business or profession" and who do not qualify to file Form ITR-1 (Sahaj), ITR-2, or ITR-4 (Sugam). ITR-3 is for those who have income derived from profits or gains of business or profession.

What is the difference between ITR-1 and ITR-3? ›

Which ITR do I have to fill for two incomes, such as commissions -194H and Salary? If income is from salary or other sources of income, then ITR-1 is applicable. While ITR-3 would be used if commission is business income of the individual.

Who can file ITR 3 with no account case? ›

The ITR-3 Form can be filed by those Individuals and Hindu Undivided Families who earn income from Proprietary business or by practising his/her profession. However, when an Individual/HUF earns income as a partner of a partnership firm which is carrying out business/profession, he cannot file ITR-3.

What is the limit of ITR 3 audit? ›

A taxpayer is required to have a tax audit carried out if the sales, turnover or gross receipts of business exceed Rs 1 crore and in case of profession exceed Rs 50 lakhs in the financial year. However, a taxpayer may be required to get their accounts audited in certain other circumstances.

What is the IRS rule of 3? ›

An activity is presumed for profit if it makes a profit in at least three of the last five tax years, including the current year (or at least two of the last seven years for activities that consist primarily of breeding, showing, training or racing horses).

What is speculative income in ITR 3? ›

Speculative income is income that is based on some future event. For example, if you buy stock in a company, then you expect to receive dividends at some point in the future based on the amount you paid for shares. One of the most common examples would be intra-day trading income.

What is the ITR for presumptive income? ›

What is the ITR-4? ITR-4 is the Income Tax Return form for taxpayers who opt for a presumptive income scheme under Section 44AD, Section 44ADA and Section 44AE of the Income-tax Act,1961. However, if the turnover of the business mentioned above exceeds Rs. 2 crore, the taxpayer will have to file ITR-3.

What is TDS in income tax? ›

TDS or Tax Deducted at Source is an income tax that is collected from certain payments like rent, salary, commission, interest, professional fees, etc. The person paying the amount should deduct TDS from such a payment.

Who uses ITR 3? ›

The ITR-3 is applicable for individual and HUF who have income from profits and gains from business or profession. One can call it a master Form, as this is the one form where an individual or HUF can report all the possible incomes.

What are the conditions for 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.

Can I file ITR 3 offline? ›

You can file for an income tax return through the ITR Form 3 by using either online or offline mode.

How do I file a W 3 form electronically? ›

To file W-2 and W-3 forms electronically, you'll need to register for the Social Security Administration's business services online (BSO) platform. Once you're in, you have two options: Use fill-in forms to create W-2s for each of your employees; or. Upload wage files from your payroll or tax software.

Can tax returns be filed online? ›

Use CalFile to e-file your state tax return directly to the Franchise Tax Board. Get real-time confirmation and the fastest refund possible. And best of all, it's free.

How can I file ITR online and offline? ›

To file ITR through offline mode, log on to the e-filing portal using PAN based login credentials. Go to the “e-file” tab and open the “income tax return” link from the drop-down. Fill in the relevant details and select the filing type as 'Offline' in the next step.

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