ITR-3 EFiling <= 50 Lakhs
Documents Needed:
1. Your Permanent Account Number (PAN) is crucial, as it serves as your unique identifier in the tax system.
2. An Aadhaar Card is also necessary, providing a means of verifying your identity and linking your tax records.
3. You must include your bank account information, specifically your account number and the IFSC code, to facilitate any potential refunds or transactions.
4. If you are a salaried individual, Form 16 is important to include, as it summarizes your earnings and the tax deducted at source (TDS).
5. It is essential to gather details regarding your investments, as these can impact your taxable income and potential deductions.
6. If you operate a business or have professional income, you will need to prepare and present your books of accounts to substantiate your earnings.
7. Ensuring that all these documents are organized and readily available will significantly enhance the efficiency and ease of the ITR filing process.
Being well-prepared can help you avoid delays and complications, allowing for a smoother experience when submitting your return. Taking the time to compile these documents in advance will contribute to a more streamlined and effective tax filing procedure.
Key Due Dates
Filing Due Date (non-audited cases): 31st July of the assessment year.
Tax Audit Cases:
Filing due date: 31st October of the assessment year.
Report submission under Section 44AB: 31st October.
Penalties for Non-Filing
Late Filing Fee under Section 234F:
₹1,000 if total income is less than ₹5 lakh.
₹5,000 for income above ₹5 lakh.
Interest under Section 234A: 1% per month on unpaid tax.
Who Should File ITR-3?
1. Individuals and HUFs earning income from:
2. Business or profession (including proprietary business or profession).
3. Income as a partner in a partnership firm (business or profession).
4. Other sources such as:
5. Salary or pension.
6. House property.
7. Capital gains.
8. Other sources like interest, dividend, etc.
9. Taxpayers who are required to maintain books of accounts under the Income Tax Act.
Who Should NOT File ITR-3?
1. Companies, LLPs, and firms (other than sole proprietorship).
2. Individuals or HUFs with income only from salary, one house property, or other sources (can use ITR-1 or ITR-2, as applicable).
3. Taxpayers eligible for presumptive taxation under Sections 44AD, 44ADA, or 44AE and filing ITR-4.
Key Features of ITR-3
1. Comprehensive Coverage: Designed for taxpayers with diverse and complex income sources.
2. Business & Profession Reporting:
a. Report gross receipts, profit & loss, and balance sheet.
b. Include information about audit reports (if applicable).
3. Mandatory Filing Requirements:
a. If total income exceeds ₹2.5 lakh (basic exemption limit, subject to age and tax regime).
b. If turnover exceeds the audit threshold.
4. Tax Audit Reporting:
a. If turnover exceeds ₹1 crore (business) or ₹50 lakh (profession).
b. For certain cases under presumptive taxation.
Structure of ITR-3
The form has several sections, categorized for efficient reporting:
Part A: General Information
Name, PAN, Aadhaar, contact details, filing section, residential status, etc.
Part B: Total Income & Tax Computation
Income from all heads, deductions, exemptions, and tax computation.
Schedules:
Schedule-S: Income from salary/pension.
Schedule-HP: Income from house property.
Schedule-CG: Capital gains (short-term and long-term).
Schedule-OS: Income from other sources (interest, dividend, etc.).
Schedule-BP: Business or profession income computation.
Schedule-DPM: Depreciation details on plant and machinery.
Schedule-OI: Other information (disallowances under the Income Tax Act).
Schedule-IT: Advance tax and self-assessment tax payments.
Schedule-TDS: Tax deducted at source.
Schedule-FA: Foreign assets and income from outside India (if applicable).
Tax Audit Requirements
Taxpayers filing ITR-3 may need a tax audit if:
Business turnover exceeds ₹1 crore.
Professional receipts exceed ₹50 lakh.
Declaring lower income than prescribed under presumptive taxation schemes.
Advantages of ITR-3
Suitable for diverse income sources, including capital gains and foreign assets.
Allows detailed reporting of business and professional income.
Helps in proper tax compliance for taxpayers with complex financial situations.
FAQs
1. Can a salaried individual file ITR-3?
Yes, if they also have income from business, profession, or capital gains.
2. Is ITR-3 mandatory for all professionals?
No, professionals with gross receipts up to ₹50 lakh can opt for ITR-4 under presumptive taxation.
3. Can I file ITR-3 without an audit?
Yes, if turnover or receipts are below the audit threshold.
