ITR 3 is applicable for those Individuals and HUFs who have income from proprietary business or are carrying on any profession.

The persons having income from following sources are eligible to file ITR 3:

  • Carrying on a business or profession
  • Return may include income from House property, Salary/Pension and Income from other sources

ITR 3 Form is applicable for the Assessment Year 2017-18, i.e. it relates to income earned in Financial Year 2016- 17.

Eligibility to file ITR 3 Form

ITR 3 is applicable for those Individual or a Hindu Undivided Family (HUF) whose total income for the assessment year includes: 

  • Income from House Property (Multiple)
  • Income from Capital Gains (Short Term and Long Term)
  • Income from Business or Profession carried under a Proprietorship Firm (where the Individual/ HUF is the proprietor)
  • Income from Other Sources (Including Winning from Lottery, bets on Race Horses and other legal means of gambling)
  • Foreign Asset

Not Eligible to file ITR 3 

  • If Individual/HUF is having income as a partner of a partnership firm carrying out business/profession, he cannot file ITR-3. In such case, he is required to file ITR 2.

Structure of the ITR 3 

The form is divided into 2 parts and 23 schedules

  • Part A – General information
  • Part B – Summarize the total income and tax computation with respect to income chargeable to tax

Modes to file ITR 3 Form

ITR 3  return can be filed by two ways i.e. Online and Offline mode. After submitting the return, the Income Tax Department gives an acknowledgment in Form ITR V which u also can download from its website. You have to sign it and send it to the Income Tax Department’s CPC Office in Bengaluru within 120 days of e-filing or e-verify.

Sequence to fill ITR 3 form

The easiest way to fill out your ITR 3Form is to follow this order

  • Part A- General
  • Schedules
  • Part B-TI and Part B-TTI
  • Verification

Major Changes in ITR 3 

Aadhaar Number

It is necessary to quote the Aadhaar number in the return of income. If any person does not have the Aadhaar Number but he had applied so, then he can quote the  Enrollment ID of Aadhaar Application Form in the ITR.

Declaration of value of assets and liabilities 

In 2016 taxpayers have to declare the value of assets and liabilities if the total income is more than Rs.50 lakhs but from now they have to declare also the description of movable assets and disclose the address of the immovable property.

Disclosure of Cash deposits during Demonetisation

It is necessary to fill this new column which introduced in all ITR forms if the taxpayer has deposited Rs 2 lakh or more during the demonetization period.

Disclosure of unexplained income and Dividend Income 

New fields inserted in Schedule ‘OS’ to declare unexplained credit or investment and dividend received from domestic companies above Rs 10 lakhs. Such persons cannot opt for ITR 1 (Sahaj).

Registration number of Chartered Accountant Firm

It is mandatory to mention the registration number of the firm of Chartered Accountant which has done the audit in ITR forms.

For any help on ITR Filing feel free to consult the tax experts at LegalRaasta. You can file ITR yourself via our ITR software or get CA’s help on filing income tax return. You can also use the option of Business Return, Bulk Return or Revised Return Filing.