Table of Contents
ITR 3 – What is ITR-3 Form & How to File ITR-3?
ITR-3 Form is an income tax return form that is applicable for individuals and HUF who have income from profits and gains from business or profession (both tax audit and non-audit cases)necessitating the maintenance of comprehensive books of accounts. To be eligible to file ITR with this form, you must have a proprietorship or a business as one of your income sources. ITR 3 Form is crucial for taxpayers earning income from a business or profession. It plays a vital role in the Income Tax Department’s efforts to collect comprehensive financial information, ensuring tax compliance.
Contact us today for expert assistance in meeting your tax obligations and ensuring a smooth filing experience
What is ITR-3 Form?
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.
Who Can File ITR-3 Form?
ITR-3 is an income tax return form that is applicable for individuals and HUF who have income from profits and gains from business or profession. The persons having income from following sources are eligible to file ITR-3: Carrying on a business or profession (both tax audit and non-audit cases). To be eligible to file ITR with this form, you must have a proprietorship or a business as one of your income sources.
ITR 3 applicability criteria:
- Directorship: The taxpayer is a director of a company or is engaged in a business.
- Residential Status: The taxpayer’s residential status can be either resident or non-resident of India.
- Pension Income: The taxpayer is receiving income from a pension.
- House Property Income: The taxpayer is earning income from house property.
- Investments in Unlisted Equity Shares: The taxpayer has investments in unlisted equity shares.
- Income from Profits and Gains of Business or Profession: The taxpayer’s income is taxable under the category of profits and gains of business or profession. This can include income elements such as salary, interest, commission, bonus, or remuneration etc.
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 other source like lotteries, betting on races, and other legal forms of gambling.
- Income from short-term or long-term capital gains.
- Income earned from a business or profession conducted under a proprietorship firm owned by the individual or a Hindu Undivided Family (HUF).
- Income earned from foreign assets.
Meeting these eligibility criteria allows individuals and HUFs to use the ITR Form 3 for filing their income tax returns, provided that their income falls into the specified categories mentioned above.
Who is Not Eligible to File the ITR 3 Form?
- No persons other than individuals & HUF are eligible to file ITR -3 Form.
- Individuals & HUFs not having income by way of business or profession or partnership firm are not eligible to file the ITR-3 Form.
Due Date for Filing Form ITR-3 Return
The due date for filing the ITR Form 3, which is the income tax return, varies depending on whether the case is an audit case or a non-audit case for different assessment years:
- For Assessment Year 2025-26:
- Non-audit Cases: The due date is July 31, 2025
- Audit Cases: The due date is October 31, 2025
- These dates are subject to change by the income tax authorities, so it’s essential to stay updated with any revisions or extensions of the due dates.
Late Filing Penalties for ITR-3 Form
The penalties for late filing of the ITR-3 form in India are as follows:
If you file your return after notified due date but before December 31 of the assessment year:
- A late filing fee of ₹ 5,000 may be levied.
- If you file your return after December 31 of the assessment year:
- A late filing fee of ₹ 10,000 may be levied.
It’s important to note that the late filing fee may vary based on the taxpayer’s total income and other factors. Additionally, if your total income is less than ₹ 5 lakh, the maximum late filing fee is capped at ₹ 1,000. Therefore, it’s advisable to file your ITR form 3 on time to avoid these late fees, interest and any potential legal consequences.
Documents required for ITR 3 filing
To file your income tax return ITR-3, the following documents are required.
- PAN (Permanent Account Number)
- Aadhaar Card
- Bank account details (account number and IFSC code)
- Details of your investments
- Books of accounts (if you have a business or professional income)
- Having these documents ready will make the ITR filing process smoother and more efficient.
- Form 16 / Salary Slips (in case of income from salary)
- Rental Agreement, if any
- Proof of Rental Income if any
- Proof of Investments to claim Tax Exemption
- Form 26AS
- Purchase Bill
- Sales Bill
- Sales Return Details
- Purchase Return Details
- Tax Paid Challans for GST
- Day to day Administration expenses and General expenses details
- Fixed Assets Invoice Copy (if Applicable)
- Investment details made by Cash
- Investment details made through Bank
- Proof of Source of Cash In-flow and Cash Out-flow
- Outstanding receivables and payables
- Bank Statement
- Break-up of Bank Statement
- Loan Details from bank
- Proof of Foreign Income (if applicable)
- Details of Foreign Assets (if applicable)
How to file ITR 3 Form
Step-1: Register or log in to the e-Filing portal using your PAN as user ID.
Step-2:Navigate to e-File and click on Income Tax Return.
Step-3: Choose the ITR-3 form number and Assessment Year from the drop-down menu.
Step-4:Fill in the essential details demanded in six sections given below in that ITR form and
calculate the payable tax.
Step-5: Pay the final tax liability, if any, and file the income tax return.
Step-6:Verify the ITR using Aadhaar OTP, EVC, or digital signature
ITR 3 Form is structure
The ITR 3 Form is structured into 6 sections, each serving a distinct purpose:
- General Information: In this segment, you are required to provide your personal particulars, including your name, address, date of birth, email address, and PAN number. Additionally, you’ll specify the assessment year and indicate whether you are filing your return as a self-assessment.
- Income Details: This section necessitates the disclosure of your income from various sources, encompassing salaries, pensions, annuities, family pensions, and other avenues. You will also calculate your total taxable income and the corresponding tax liability.
- Deductions and Taxes Paid: In this category, you have the opportunity to claim deductions permitted under various sections of the Income Tax Act. Additionally, you must report the taxes you have paid during the financial year, such as advance tax and self-assessment tax.
- TDS/TCS Credit: This division mandates the inclusion of details regarding any Tax Deducted at Source (TDS) or Tax Collected at Source (TCS) credits that are applicable to you.
- Verification and Declaration: In this final section, you are tasked with validating your return through either a digital signature or by dispatching a physical copy of the signed return to the Centralized Processing Center (CPC). Moreover, you must make a declaration affirming that all the information furnished in the return is accurate and true to the best of your knowledge.
How DisyTax Simplifies Your ITR-3 return Filing
Filing your ITR-3 form accurately and on time is crucial. DisyTax makes it hassle-free with expert guidance, a user-friendly platform, document management, deduction optimization, review and verifying ITR 3 applicability, secure filing, timely reminders, and post-filing support.
Let DisyTax assist you in filing your ITR-3 form, allowing you to focus on your business and financial well-being. Contact us today for expert assistance in meeting your tax obligations and ensuring a smooth filing experience
ITR-3 Return Filing FAQ’s
What is the ITR 3 form?
The ITR-3 form is an income tax return form used in India for individuals and Hindu Undivided Families (HUFs) who earn income from a business or profession.
Who should file the ITR-3 form?
Individuals or HUFs should file the ITR-3 form if they meet specific criteria, including being a company director, receiving pension income, earning income from house property, or having investments in unlisted equity shares
Who is not eligible to file the ITR-3 form?
Individuals or HUFs earning income as a partner of a partnership firm engaged in a business or profession fall out of ITR 3 applicability. They should file the ITR-2 form instead of the ITR-3.
What is ITR 3 due date for filing it for non-audit cases in the assessment year 2025-26?
The due date for non-audit cases for the assessment year 2023-24 is July 31, 2025.
What are the penalties for late filing of the ITR-3 form in India?
If filed after the due date but before December 31 of the assessment year, a late filing fee of 5,000 may be levied. If filed after December 31, a late filing fee of 10,000 may be levied. The fee may vary based on income and other factors.
What documents are required to file the ITR-3 form?
Required documents include PAN, Aadhaar card, bank account details, Form 16 (if applicable), investment details, and books of accounts (for business or professional income).
How many sections are there in the ITR-3 form?
The ITR-3 form is divided into six sections: General Information, Income Details, Deductions and Taxes Paid, TDS/TCS Credit, Verification and Declaration, and Schedules.
What information is required in the “Income Details” section of the ITR-3 form?
This section requires disclosure of income from various sources, including salaries, pensions, annuities, family pensions, and other avenues, along with total taxable income and tax liability calculation.
Can I claim deductions in the ITR-3 form?
Yes, you can claim deductions permitted under various sections of the Income Tax Act in the “Deductions and Taxes Paid” section.
What is TDS and TCS credit in the ITR-3 form?
TDS stands for Tax Deducted at Source, and TCS stands for Tax Collected at Source. You need to include details of these credits in the respective section.
How can I verify my ITR-3 form?
You can verify your ITR-3 form either through a digital signature or by sending a physical copy of the signed return to the Centralized Processing Center (CPC).
Why should I choose DisyTax for filing the ITR-3 form?
DisyTax offers expert guidance, accurate filing, documentation assistance, secure filing, and timely reminders to simplify the ITR-3 filing process.
What services does DisyTax provide to simplify ITR-3 filing?
DisyTax offers expert guidance, document management, deduction optimization, review and verification, secure filing, timely reminders, and post-filing support to simplify ITR-3 filing.
Is there a specific format to fill out the ITR-3 form?
Yes, the ITR-3 form must be filled out following the format and guidelines provided by the Income Tax Departme
Are there any exceptions to the late filing penalties for the ITR-3 form?
If your total income is less than 5 lakh, the maximum late filing fee is capped at 1,000
What should I do if I miss the due date for filing the ITR-3 form?
If you miss the due date, you should file your ITR-3 form as soon as possible to avoid additional late filing penalties and potential legal consequences.
Is it essential to file the ITR-3 form accurately and on time?
Yes, filing the ITR-3 form accurately and on time is crucial to avoid penalties and comply with tax regulations. Our experts can help you file ITR-3 error-free.
What is the benefit of using DisyTax for ITR-3 filing?
DisyTax ensures a smooth filing experience, allowing you to focus on your business and financial well-being while meeting your tax obligations.
Can I contact DisyTax for assistance with my ITR-3 filing?
Yes, you can contact DisyTax for expert assistance with your ITR-3 filing.
�