Understanding ITR-3 Form

The ITR-3 form is crucial for taxpayers earning income from a business or a profession. It plays a vital role in the Income Tax Department's efforts to collect comprehensive financial information, ensuring tax compliance.

Who Should File ITR-3 Form?

The ITR Form 3 can be used for filing an income tax return by individuals or Hindu Undivided Families (HUFs) who meet the following eligibility 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 Under '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.

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 activities like lotteries, betting on races, and other legal forms of gambling as per Indian law.

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?

An individual or Hindu Undivided Family (HUF) earning income as a partner of a partnership firm engaged in a business or profession is not eligible to file ITR-3. In such cases, they should file ITR-2 instead.

Due Date for Filing Form ITR 3

The due date for filing the ITR-3 form, 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 2023-24:

Audit Cases: The due date is October 31, 2023

Non-audit Cases: The due date is July 31, 2023

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 the 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-3 form on time to avoid these penalties and any potential legal consequences.

Documents Required

To file your income tax return (ITR) on Leagel Edge Advice Care for ITR-3, the following documents are needed.

PAN (Permanent Account Number)

Aadhaar Card

Bank account details (account number and IFSC code)

Form 16, if applicable (for salaried individuals)

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.

Sections of the ITR-3 Form

The ITR-3 form is structured into six 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.

Why Choose Leagel Edge Advice Care for ITR-3 Form Filing?

Leagel Edge Advice Care is your ideal partner for ITR-3 form filing, offering expert guidance, accuracy, timely filing, documentation assistance, and a secure platform. We simplify the process, ensuring your compliance with tax regulations.

How Leagel Edge Advice Care Simplifies Your ITR-3 Filing

Filing your ITR-3 form accurately and on time is crucial. Leagel Edge Advice Care makes it hassle-free with expert guidance, a user-friendly platform, document management, deduction optimization, review and verification, secure filing, timely reminders, and post-filing support.

Let Leagel Edge Advice Care 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.