ITR-3 Return

ITR-3 Return

One of the most important things to remember while completing an ITR is filling out the forms, which vary depending on the amount and source of income.

The income tax return form (ITR-3) is intended for people and HUFs with income from head profits or profits from business and profession. It is one of the many ITR forms created by India's IT department. There are seven ITR forms (ITR 1 through ITR 7) for various taxpayer categories.

What is the ITR 3 form?

In India, individuals and Hindu Undivided Families (HUFs) with income from the following sources file an income tax return using ITR-3.

1. revenue from a career or business
2. earnings from a pension or salary
3. revenue from real estate
4. revenue from capital appreciation
5. revenue from additional sources

Taxpayers who get income from any of the above sources must file ITR-3; however, ITR-4 applies to those who receive income from profits and gains from a company or profession under the presumptive taxation plan. The information regarding the taxpayer's income and deductions is detailed in the ITR-3, which is extensive and divided into many sections. Taxpayers are required to provide some pertinent data, such as information on other sources of income, taxes paid, deductions made, confirmation, etc.

Who can submit a Form ITR-3?

Individuals belonging to the following category can file an ITR-3 Form:

1. Maintaining a business or career (including non-audit and audited tax matters)
2. The income from capital gains, salaries and pensions, real estate, and other sources may all be included in the return.
3. Payment received from a partnered company

Who is not eligible to submit an ITR-3 Form?

Individuals belonging to the following category are not eligible to file an ITR-3 Form:

1. ITR-3 Forms can only be filed by individuals and HUF. No other parties are permitted.
2. Individuals or HUFs can only file the ITR-3 Form with income from a business, profession, or partnership entity. 

Steps followed by Lawgical Adda to help you submit the ITR Form 3

1. Contact us through our portal. Our experts will connect with you to know your requirements.
2. Send our professionals all the necessary documentation.
3. Our professionals will file your income tax return online using the registered site. An ITR Filing Form will be chosen based on your category, and professionals will complete all the necessary fields and claim any relevant exemptions.
4. After accounting for all exemptions, our professionals will advise you of any taxes that may be due.
5. Your income tax return will then be easily filed after that.
6. Lawgical Adda keeps you updated throughout the process to maintain transparency. 

What documentation is needed to file an ITR 3?

1. Permanent Account Number (PAN card)
2. Aadhaar Identity Card
3. Information about bank account Form 16 (if applicable) for salaried individuals
4. Investment specifics
5. You must produce books of accounts if you receive income from a business or profession.

What is the ITR-3 form's structure?

ITR-3's structure is broken down into six components. They are as follows:

1. General information: This section includes the person's name, address, date of birth, email address, and other information. A PAN card is required, and the assessment year must be indicated. It is also necessary to mention whether you are filing a return as a self-assessment.
2. Income information: This section requests information about your income from various sources, such as pay, pensions, and other forms of income. You must calculate your income and your tax liability.
3. Paid taxes and deductions: This segment can submit claims for deductions allowed by specific IT Act sections. You must declare all of your taxes for the fiscal year, including advanced taxes and self-assessment.
4. Credit to TCS and TDS: This section handles the required inclusion of information on Tax Deducted at Source (TDS) and Tax Collected at Source (TCS).
5. Confirming and Declaring: This part validates the ITR using the Digital Signature Certificate (DSC) technique. Alternatively, you can send the Centralized Processing Center a copy of the signed return. Next, you must attest to the accuracy of all the information you have provided in return.

ITR-3 form modifications for AY 2023–2024 and AY 2024–2025

The modifications listed below are included in the FY 2022–2023 ITR-3 form and are also relevant for FY 2023–2024:

1. You can now record your cryptocurrency and other VDA income separately by adding a new scheduled VDA. A quarterly separation under the Capital Gains Schedule is required if income from VDAs is treated as capital gains. Every VDA transaction, including the sale and purchase dates, must be disclosed in the new ITR-3.
2. The new ITR 3 form now includes a few additional inquiries to determine whether you previously chose to opt out of the New Tax Regime.
3. Foreign institutional investors (FII/FPI) are required to supply their SEBI registration number as an extra measure of disclosure. 
4. A minor modification has been made to the reporting of balance sheets. Advances from individuals listed in Sec. 40A(2)(b) of the Income Tax Act and others must be recorded under the 'Advances' heading in Source of Funds, per the updated ITR-3 form.
5. Revenue from intraday trading and turnover must be reported under the recently added "Trading Account" column.

With its professional advice, accuracy, timely filing, assistance with paperwork, secure platform, and timely filing of ITR 3 Forms, Lawgical Adda is your perfect partner. We streamline the procedure to guarantee that you abide by tax laws.

It's critical that you accurately and promptly file your ITR-3 form. With our professional advice, an easy-to-use platform, organising documents, deduction optimization, review and verification of the ITR 3 application, secure filing, prompt reminders, and post-filing support, we make it hassle-free.

Let us help you file your ITR-3 so you can concentrate on running your company and taking care of your finances. For professional help fulfilling your tax duties and guaranteeing a hassle-free filing process, contact us right now.