ITR-3 refers to Income Tax Return Form 3 in India. It is one of the forms prescribed by the Income Tax Department of India for individuals and Hindu Undivided Families (HUFs) who have income from business or profession.
Here’s a detailed breakdown:
Who should file ITR-3?
ITR-3 is applicable to individuals and HUFs who have income under the head “Profits or gains of business or profession.” This includes:
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Income from a proprietary business
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Income from profession (like doctors, lawyers, architects, consultants, freelancers, etc.)
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Income from partnership firms (not as a partner’s share but other income like interest, remuneration)
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Speculative income (like intraday stock trading)
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Commission or brokerage income
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Capital gains
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Income from house property
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Salary or pension
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Other sources (like interest, dividends, etc.)
Who should NOT file ITR-3?
ITR-3 is not applicable to:
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Individuals/HUFs who do not have business/profession income
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Companies
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LLPs and Firms (they file ITR-5)
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Individuals who opt for presumptive taxation under sections 44AD, 44ADA, or 44AE (they file ITR-4 instead)
Key Features of ITR-3:
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Requires detailed disclosure of assets and liabilities if income exceeds ₹50 lakh.
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Balance sheet and profit & loss account details need to be reported.
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Audit information must be provided if applicable under Section 44AB.
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Offers the option to carry forward business losses.
Documents Needed:
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PAN and Aadhaar
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Bank account details
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Profit & Loss Account and Balance Sheet
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Audit reports (if applicable)
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Form 16 (if also earning salary)
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TDS/TCS certificates (Form 26AS, AIS)
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Investment proofs, etc.
Due Date for Filing:
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Non-audit cases: Usually 31st July of the assessment year.
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Audit cases: 31st October (subject to government extensions).
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