Income Tax Return: Detailed Guide on filing ITR-3

Income Tax Return - filing ITR-3 - Taxscan

The Central Board of Direct Taxes (CBDT) notified the guidelines for filling the particulars in Income‐tax Return Form‐ 3 for the Assessment Year 2021‐22 relating to the Financial Year 2020‐21.

What is ITR-3?

The ITR 3 is applicable for individual and HUF who have income from profits and gains from business or profession.

Who is eligible to use this Return Form?

This Return Form is to be used by an individual or a Hindu Undivided Family who is having income under the head “profits or gains of business or profession” and who is not eligible to file Form ITR‐1 (Sahaj), ITR‐2 or ITR‐4 (Sugam).

This Return Form can be filed with the Income‐tax Department electronically on the e‐ filing web portal of Income‐tax Department (www.incometaxindiaefiling.gov.in) [www.incometax.gov.in from 7‐June‐2021]and verified by digitally signing the verification part, or authenticating by way of electronic verification code (EVC), or Aadhaar OTP, or by sending duly signed paper Form ITR‐V – Income Tax Return Verification Form by post to CPC at the Centralized Processing Centre, Income Tax Department, Bengaluru— 560500, Karnataka.

The Form ITR‐V‐Income Tax Return Verification Form should reach within 120 days from the date of e‐filing the return.

The confirmation of the receipt of ITR‐V at the Centralized Processing Centre will be sent to the assessee on e‐mail ID registered in the e‐filing account.

However, in a case where accounts are required to be audited u/s 44AB, it is mandatory to verify the return electronically under digital signature.

In case an assessee is required to furnish a report of audit under sections 10AA, 44AB, 44DA, 50B, 80 ‐IA, 80‐IB, 80‐IC, 80‐ID, 80JJAA, 80LA, 92E, 115JB or 115JC, he shall file such report electronically one month before the due date of filing of return of income.

Filling out the ITR V‐Income Tax Return Verification Form

Where the Return Form is furnished in the manner mentioned at 3(iv), the assessee should print out Form ITR‐V‐Income Tax Return Verification Form. ITR‐V‐Income Tax Return Verification Form, duly signed by the assessee, has to be sent by ordinary post or speed post only to Centralized Processing Centre, Income Tax Department, Bengaluru–560500 (Karnataka).

Obligation to file return

Every individual or HUF whose total income before allowing deductions under Chapter VI‐A of the Income‐tax Act, exceeds the maximum amount which is not chargeable to income tax is obligated to furnish his return of income. The claim of deduction(s) under Chapter VI‐A is to be mentioned in Part C of thisReturn Form.

If the new regime is not opted for, the maximum amount of Rs.2,50,000 which is not chargeable to income‐tax for Assessment Year 2021‐22, in case of an individual who is below the age of 60 years or a Hindu Undivided Family (HUF).

If the new regime is not opted for, the maximum amount of Rs.3,00,000 which is not chargeable to income‐tax for Assessment Year 2021‐22, in case of an individual, being resident in India, who is of the age of 60 years or more at any time during the financial year 2020‐21 but below the age of 80 years.

If the new regime is not opted for, the maximum amount of Rs.5,00,000 which is not chargeable to income‐tax for Assessment Year 2021‐22, In case of an individual, being resident in India, who is of the age of 80 years or more at any time during the financial year 2020‐21.

If the new regime is opted for, the maximum amount of Rs.2,50,000 which is not chargeable to income‐tax for Assessment Year 2021‐22 in case of an individual who is below the age of 60 years or a Hindu Undivided Family (HUF), in case of an individual, being resident in India, who is of the age of 60 years or more at any time during the previous year 2020‐21 and in case of an individual, being resident in India, who is of the age of 80 years or more at any time during the previous year 2020‐21.

If a person whose total income before allowing deductions under Chapter VI‐A of the Income-tax Act or deduction for capital gains (section 54 to 54GB), does not exceed the maximum amount which is not chargeable to income‐tax but fulfils one or more conditions namely Deposit of amount or aggregates of the amount exceeding Rs 1 crore in one or more current accounts; Incurred expenditure of an amount or aggregate of the amount exceeding Rs. 2 lakhs for travel to a foreign country for yourself or any other person; Incurred expenditure of amount or aggregate of the amount exceeding Rs. 1 lakh on the consumption of electricity.

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