ITR- 3 Return Filing
- Art Teacher
- London, UK
- 5-7 Hrs
Thinking about filing your income tax return and confused between ITR-2 and ITR-3? Here’s the golden rule: If you earn from business or profession, ITR-3 is your go-to form. Whether you’re a freelancer, doctor, chartered accountant, consultant, or running a proprietorship, ITR-3 is mandatory. It covers not just professional income, but also income from salary, capital gains, house property, and other sources.
What makes ITR-3 different is its detailed reporting requirement. You must disclose balance sheets, profit & loss accounts, and even asset-liability statements in certain cases. If you’ve opted for presumptive taxation under Section 44ADA or 44AD, you still need to use ITR-3 if turnover crosses limits or books are maintained.
- PAN, Aadhaar, and active bank account details
- Form 16 (if also salaried)
- Form 26AS, AIS & TIS for tax credit matching
- Profit & Loss Account and Balance Sheet
- Invoices, bills, and receipts of business/profession
- Interest certificates (Savings/FD/RD)
- Rent agreements, municipal taxes (for house property)
- Capital gains statement (if applicable)
- Investment proofs for deductions (80C, 80D, etc.)
- GST returns (if registered)
- Details of loans, advances, debtors, creditors (if applicable)
- Login to incometax.gov.in
- Go to e-File > File Income Tax Return
- Choose: AY: Relevant Assessment Year, ITR Form: ITR-3 and Filing Type: Original / Revised
- Fill the schedules: Salary, Business/Profession, P&L, Balance Sheet, etc.
- Add deduction details under Chapter VI-A
- Compute tax liability and pay dues (if any)
- Submit and e-verify your return within 30 days
FAQs
Maintaining books of accounts is mandatory if the turnover exceeds ₹1 crore (₹10 crore for specified cases) or if profit exceeds ₹2.5 lakh in trading business under ITR-3; otherwise, it may not be required but recommended for accurate filing.
The due date for filing ITR-3 is typically July 31 of the assessment year for non-audit cases and October 31 if tax audit is applicable.
Filing a wrong ITR form can lead to re-assessment, scrutiny, and penalties including fines up to ₹10,000 for late or inaccurate filing, and potential loss of benefits like carry-forward of losses.
A balance sheet is mandatory for ITR-3 filers who maintain regular books and have audit requirements or business income; others without audit or turnover limits may not need to submit a balance sheet.
No, GST registration is not mandatory to file ITR-3, but if the business is required to register under GST as per turnover or activity, then GST compliance is separate and must be followed independently of income tax filings.