What is the ITR 3 Form?

The ITR 3 Form is meant for individuals who run sole proprietorship businesses. It helps report income and calculate tax liability. This form must be filed yearly and submitted to the Income Tax Department before the due date.

Who is Eligible to File ITR 3 Form?

Individuals or Hindu Undivided Families (HUFs) earning income from business, profession, capital gains, or interest (other than salary, pension, or property) must file ITR 3. First-time filers also need to provide PAN details and a bank account for refunds, if applicable.

When is the ITR 3 Form Due?

ITR 3 must be filed by 31st July every year by individuals who are self-employed or run a business.

Penalties for Late Filing of ITR 3

Filing after the deadline can lead to penalties. A fee of ₹5,000 applies if delayed by over a month, and ₹10,000 if delayed beyond six months.

How to File the ITR 3 Form

The ITR 3 form is used by individuals who are self-employed or running a business.

Documents Required:

• PAN Card
• Bank account details
• Salary slips for the financial year
• Form 16 or 16A (as applicable)
• Other relevant ITR forms

Sections in the ITR 3 Form:

• General Information: Provide personal details like name, address, DOB, email, PAN, and assessment year. Specify if it’s self-assessment.
• Income Details: Mention income from salary, pension, annuities, and other sources, along with total taxable income and tax liability.
• Deductions & Taxes Paid: Claim deductions under the Income Tax Act and report taxes like advance or self-assessment tax.
• TDS/TCS Credit: Enter details of TDS or TCS credits available.
• Verification & Declaration: Confirm the accuracy of the information using a digital signature or by sending a signed physical copy to CPC.

Structure of the ITR 3 Form for Assessment Year 2022–2023

The ITR 3 Form is for individuals classified as ‘residents and ordinary residents’ for AY 2022–23, who earn income from sources other than salary, pension, or family income.

It can be downloaded from the Income Tax Department’s website and consists of 7 key schedules:

• Schedule HP: Calculates income and tax liability from house property.
• Schedule CG: Covers income and tax on capital gains from assets other than stock-in-trade securities.
• Schedule SI: Computes income and tax liability from salaries.
• Schedule SSI: Computes income and tax liability from pensions.
• Schedule OS: Calculates income and tax liability from other sources like interest, lotteries, horse races, etc.
• Schedule VI-A: Records basic assessee details like name, address, and PAN.

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