Eligibility criteria for filing ITR 3 Form

 Who is eligible to file it?

- ITR 3 Form is for individuals and HUFs with income from profession or proprietary business

- It can also be used for income from house property, salary/pension, and other sources

- Eligibility:

  - Income from carrying a profession

  - Income from proprietary business

Who cannot file the ITR 3 Form?

If an individual or Hindu Undivided Family is a partner in a business or profession of a partnership firm, they cannot file ITR 3 and must file ITR 2 instead.

 ITR- 3 Form Structure

ITR-3 has various sections, including:

- Part A-GEN for general information and nature of business.

- Part A-BS to show the balance sheet as of March 31, 2020, for the proprietary business or profession.

- Part A-Manufacturing Account to display the manufacturing account for the financial year 2019-20.

- Part A-Trading Account to reveal the trading account for the financial year 2019-20.

- Part A-P&L to present a profit and loss statement for the financial year 2019-20.

- Part A-OI (optional for cases not liable for audit under Section 44AB) for other information.

- Part A-QD (optional for cases not liable for audit under Section 44AB) for quantitative details.

 Schedules to be aware of in the tax return form are:

- Schedule-S: for calculating income from salaries

- Schedule-HP: for determining income from house property

- Schedule BP: for computing income from business or profession

- Schedule-DPM: specifically for calculating depreciation on plant and machinery under the Income-tax Act

- Schedule DOA: dedicated to calculating depreciation on other assets under the Income-tax Act

- Schedule DEP: a summary of depreciation on all assets under the Income-tax Act

- Schedule DCG: for determining deemed capital gains on the sale of depreciable assets

- Schedule ESR: for deducting expenditure on scientific research under section 35

- Schedule-CG: specifically for computing income from capital gains.

- Schedule 112A: Details of Capital Gains where section 112A is applicable.

- Schedule 115AD(1)(iii) Provision: For Non-Residents Details of Capital Gains where section 112A is applicable.

- Schedule-OS: Computation of income under the head Income from other sources.

- Schedule-CYLA-BFLA: Statement of income after set off of current year’s losses and Statement of income after set off of unabsorbed loss brought forward from earlier years.

- Schedule-CYLA: Statement of income after set off of current year’s losses.

- Schedule BFLA: Statement of income after set off of unabsorbed loss brought forward from earlier years.

- Schedule CFL: Statement of losses to be carried forward to future years.

- Schedule-UD: Statement of unabsorbed depreciation.

- Schedule ICDS: Effect of Income Computation Disclosure Standards on Profit.

- Schedule-10AA: Computation of deduction under section 10AA.

- Schedule 80G: Statement of donations eligible for deduction under section 80G.

- Schedule RA: Statement of donations to research associations, etc. eligible for deduction under various sections of 35.

- Schedule 80IA, 80IB, 80IC, and 80-IE: Computation of deductions under specific sections.

- Schedule VIA: Statement of deductions (from total income) under Chapter VIA.

- Schedule SPI-SI-IF: Information on income of specified persons, income chargeable at special rates, and partnership firms.

- Schedule AMT: Computation of Alternate Minimum Tax Payable under Section 115JC.

- Schedule AMTC: Computation of tax credit under section 115JD.

- Schedule SPI: This includes the statement of income arising to the assessee's spouse, minor child, son's wife or any other person or association of persons. Such income should be included in Schedules-HP, BP, CG, and OS.

- Schedule SI: This is for income that is chargeable to tax at special rates.

- Schedule-IF: This provides information regarding partnership firms in which the assessee is a partner.

- Schedule EI: This is for incomes that are exempt and therefore not included in the total income.

- Schedule PTI: This details pass-through income from a business trust or investment fund as per section 115UA, 115UB.

- Schedule TPSA: This is for secondary adjustment to transfer price as per section 92CE(2A).

- Schedule FSI: This provides details of income from outside India and tax relief.

- Schedule TR: This includes the statement of tax relief claimed under section 90 or section 90A or section 91.

- Schedule FA: Record your foreign assets and income earned abroad.

- Schedule 5A: Indicate the income split between you and your spouse if you're governed by the Portuguese Civil Code.

- Schedule AL: Declare your assets and liabilities for the year if your total income is above Rs. 50 lakhs.

- Schedule DI: Provide details on tax-saving investments, deposits, or payments made between April 1 to June 30, 2020, for deductions or exemptions.

- Schedule GST: Report your turnover or gross receipt for GST purposes.

- Part B-TI: Compute your total income.

- Part B-TTI: Calculate the tax liability on your total income.

- Don't forget to complete the verification section and submit your filing on time.

GUIDELINES FOR FILLING ITR-3 FORM

Here are the main guidelines to follow when filling out the ITR 3 Form. While the Sections listed above must be addressed, it's important to keep in mind these important instructions:

·         If a Schedule is inapplicable to the assessee, simply write -NA-.

·         If no figure is available, state Nil.

·         When indicating negative balances under a profit column, add a " - " sign before the figure.

·         Round off all figures to the nearest one rupee.

·         Round off the total income or payable loss to the nearest multiple of Rs.10.

·         Complete Part A before moving on to filling out the 23 schedules in Part B. Finally, don't forget to verify the document.