Income Tax Return -3 (ITR-3)
The ITR-3 form is used by individuals and Hindu Undivided Families (HUFs) who have income from business or profession, but do not have income from carrying on a business or profession under a proprietorship. The form consists of several sections that need to be filled out accurately to report all relevant income and deductions.
In the ITR-3 form, taxpayers need to provide details of their income from business or profession, including turnover or gross receipts, profit and loss account, and balance sheet. They also need to provide information about any deductions claimed, such as depreciation on assets, expenses incurred in the course of business or profession, and any other exemptions or deductions allowed under the Income Tax Act.
Additionally, taxpayers need to disclose any other income they may have earned during the financial year, such as income from house property, capital gains, or income from other sources. They also need to provide details of any taxes paid or deducted at source, as well as any advanced tax payments made during the year.
The ITR-3 form also requires taxpayers to provide details of their assets and liabilities, including investments made, bank accounts held, and loans taken or given. Additionally, taxpayers need to provide information about any foreign assets or income they may have, as well as any tax relief claimed under the Double Taxation Avoidance Agreements (DTAA).
↠The form consists of several sections, each of which requires specific information to be filled out.
These sections include:
Personal information: This section requires the taxpayer to provide details such as name, address, PAN, and contact information.
Income details: This section requires the taxpayer to provide information about their income from various sources, including salary, house property, capital gains, and business or profession.
Deductions: This section allows the taxpayer to claim deductions under various sections of the Income Tax Act, such as Section 80C, Section 80D, and Section 80G.
Tax computation: This section calculates the total taxable income of the taxpayer and determines the tax liability.
TDS details: This section requires the taxpayer to provide information about tax deducted at source (TDS) from their income.
Advance tax and self-assessment tax payments: This section requires the taxpayer to provide details of any advance tax or self-assessment tax payments made during the financial year.
Bank details: This section requires the taxpayer to provide details of the bank account in which they want to receive any tax refund.
↠The form is divided into several sections, with each section covering different aspects of the taxpayer's finances.
Some of the key sections of the ITR-3 form include:
Personal Information: This section requires the taxpayer to provide their basic personal details such as name, address, and PAN number.
Income Details: In this section, the taxpayer needs to provide details of their income from business or profession, including income from salary, house property, capital gains, and other sources.
Deductions: The taxpayer is required to provide details of any deductions they are eligible for, such as deductions for investments in specified instruments like PPF or NSC, medical insurance premiums, and contributions to pension funds.
Tax Calculation: This section requires the taxpayer to calculate their total tax liability based on the income and deductions provided in the form.
Verification: The taxpayer needs to sign and date the form to verify that all the information provided is true and accurate.
↠Overall, the ITR-3 form is a comprehensive document that requires detailed information about a taxpayer's income, deductions, assets, and liabilities. By accurately completing the form and submitting it on time, taxpayers can ensure compliance with their tax obligations and avoid any potential penalties or fines for non-compliance.
