ITR-3 is an Income Tax Return form used by individuals and Hindu Undivided Families (HUFs) who have income from proprietary business or profession. It is applicable for individuals and HUFs who have income from business or profession but do not have income from any other source under the head "Profit and Gains from Business or Profession."
Key points about ITR-3:
Applicability: Individuals and HUFs who have income from proprietary business or profession can use ITR-3. This includes individuals who are partners in a partnership firm but do not qualify for ITR-2.
Ineligibility: Individuals who are eligible to file ITR-1 (Sahaj) or ITR-2, directors in a company, or have income from capital gains or foreign assets, cannot use ITR-3.
Filing Mode: ITR-3 can be filed online on the Income Tax Department's e-filing portal or offline by submitting a physical copy of the form.
Sections in ITR-3: The form is divided into several sections, including personal information, income details, tax computation, and tax deductions related to business or profession.
Verification: The taxpayer is required to verify the return using a digital signature, Aadhaar OTP, or by sending a signed physical copy to the Centralized Processing Center (CPC) within 120 days of filing the return online.
Deadline: The due date for filing ITR-3 for the assessment year 2023-24 (financial year 2022-23) is typically July 31, 2023. However, this deadline can be extended by the government.