SUB GST p5.10

What is the ITR-3 Form?

8 May 2020

About:

The ITR 3 is applicable for individuals and HUF who have income from PGBP. Persons generating income from the following sources are eligible to file ITR 3.

a. Carrying on a profession or business ( both tax audit and non-audit cases).

b. The return may include income from  Salary/Pension, House property, and Income from other sources.

Structure of the ITR-3 Form 

ITR-3 is divided into:

• Part A

  •  General information and Nature of Business

  •  Balance Sheet  of the Proprietary Profession or Business  as at March 31st 

  •  Manufacturing Account: 

  • Trading Account for the financial year.

  •  Profit and Loss for the Financial Year

  •  Other Information 

  •  Quantitative Details 

Filing of ITR-3 Form

ITR-3 shall compulsorily be filed online.

It can be filed Online/Electronically:

1. By furnishing the return electronically through digital signature

2. Transmitting the data by electronic mode and then submitting the verification of the return in Return Form ITR-V

Major Changes in ITR form 3 

Categorization of the field for residential status into :

for Individuals and

for HUF

In the case of 

For Residential status in India, the 3 sub-categories – R, ROR, and Non-resident have been mentioned which requires the individual to tick against the specific category they belong to.

A Non-resident individual is also required to specify the jurisdiction(s) of his residence during the previous year providing the Taxpayer Identification Number(s) of the relevant jurisdictions. It also requires, in case the individual is a Citizen of India or a Person of Indian Origin (PIO), to give information of his stay in India during the previous year (in days) and the duration of stay in India during the 4 preceding years (in days).

Structure of the ITR-3 for AY 2018-19

Aadhaar Number – Quoting

Mentioning Aadhaar number in the return of Income is mandatory.

Declaration of the value of assets and liabilities by Individuals/HUF earning above Rs 50 lakhs in Schedule ‘AL’

 If their total income exceeds Rs. 50 lakhs, the value of assets and liabilities shall be disclosed along with mentioning the cost of immovable property with details.

Disclosure of unexplained income and Dividend Income

To declare unexplained credit or investment and dividend received from domestic companies above Rs 10 lakhs new fields have been inserted in schedule ‘OS’. ITR 1 Sahaj cannot be opted by such a person.

Disclosure of GST related details

In the Profit and Loss schedule, the GST related details have to be disclosed.

Limitation on the claim for depreciation

A limitation of the maximum 40% is placed on depreciation in all depreciation-related Schedules.

Partners filing of income tax return

Partners of partnership firms have to file returns in ITR 3 as against ITR 2