Income Tax Return is thus a proof that he has paid his income tax. It thus contains the details about the individuals’s annual income and the amount of tax which he has paid. Every year, Indian citizens who thus earn taxable income have to file Income Tax Return (ITR). ITR filing will help the individual in getting a refund in case he pays more tax than what he is required to pay.
A return of income is a defined form which however lists out the particulars of the income and the taxes that are paid on the same by an individual, firm or an organisation in a financial year. This in turn can thus be presented to the Income Tax Department. There are thus differing forms for the incomes of different status and the nature and they are also readily available on the online portal of the Income Tax Department of India.
There are thus currently nine different forms available for filing of income tax returns. They thus go from ITR-1 to ITR-7 and it also includes the ITR-4S and ITR-V.
For income tax return filing, various forms need to be submitted. One such form is ITR 3. It is paid by certain taxpayers as per the provisions of the income tax act. The income tax act of 1961 provides that every individual who is earning an amount of income is required to pay taxes to the income tax department.
ITR 3 is also a part of the process of filing return. This form is applicable to those persons who are registered as partners in the firm. As per rules of income tax act of 1962, this form is not applicable to the sole proprietorship. It is for partnership firms or partnership profession.
Eligibility criteria are different for various forms as per the rules and regulations of the income tax act. The below-mentioned conditions should be fulfilled for the ITR 3 form
1. The individual should be the partner of the firm.
2. Income comes from a profit of the business or profession.
3. Income comes by means of salary, interest, remuneration or commission.
4. An important point to note is that if the individual is earning income just by having a share in the profit of the firm not by other means such as commission or remuneration then that person is required to file only Form ITR3, not ITR2.
The return form should not be filed by a person in the business of proprietorship.
The process of filing ITR 3 form:
This type of return can be filled by two ways. One way is an offline method and other is by online or electronically method.
1. It can be done by furnishing the return in paper form.
2. By burnishing a bar coded return is also a way for filling the form by offline mode.
1. The return can be filed by using the digital signature certificate.
2. Data in the return should be transmitted electronically and should be verified thoroughly.
3. While filing the return online the assessee should print two copies of ITR 5 form which will serve as the acknowledgment slip. One of the copies should be sensed to Bangalore, electronic city office.
The structure of ITR 3 form:
The ITR 3 form is divided into two parts and further divided into 23 schedules. The two parts are explained below:
Part A- It contains all the general information.
Part B- It represents the total income and tax computation.
The form has 23 schedules. These schedules are such as computation of income under the heads salaries, computation of income under the heads of property, information regarding partnership firm etc.
No annexure required- While filing this ITR 3 form no other documents are required to filled with this.