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What is ITR-3?

ITR-3 is a form that is mainly required to file an income tax return by individuals who are members of a Hindu Undivided Family and are a partner at a Partnership Firm. The mode of income for such a person can be either in the form of a salary or bonus, interest, etc.

There are a lot of forms that an assessee uses while filing his income tax return. ITR-3 is a form used by the Hindu Undivided Families and individuals who are basically registered as ‘Partners’ in a firm. This form does not apply to the proprietors of that particular firm but applies to all the professionals in a partnership profession. All the partners must be earning income in the form of salary, commission, bonus, etc.


ITR-3 Can Be Used By Whom?

This form can be filed by the following: –

  1. Hindu Undivided Family or an individual who is a partner in a firm.
  2. Where the income chargeable includes income in the form of salary, bonus, interest, commission, remuneration.

How To File ITR-3?

A person can file the form by following the steps mentioned below: –

  • If the schedule does not apply to him, he has to put ‘NA’.
  • If there is not any figure to denote, he has to put ‘Nil’.
  • If the balance is negative and he writes it against a profit column, he can put the ‘-‘ sign before that figure.
  • He has to round off the figures to the nearest one rupee.
  • The loss payable or the total income must be rounded off to the nearest multiple of Rs. 10.
  • After that, he has to fill the Sections in Part A and then can move to fill the 23 Schedules in Part B.

In How Many Ways Can You File An ITR-3?

A person can file this form in two modes which are mentioned below: –

  • Offline Mode: In the offline mode, a person can furnish the return in paper form and can return it through a bar-coded return.
  • Online Mode: However, in the online method, a person can furnish the return electronically with the help of a digital signature. The data will be transmitted after the submission of the verification of the return. This method is convenient as a person can file the form without going anywhere and just from the comfort of his home. He has to print the copies of the form as a record.

When Can You File The Returns Electronically?

A person can file his returns electronically or online when: –

  • the resident assessee has some assets outside the country (India) or if the signing authority is outside India.
  • the income of the assessee is more than Rs. 5 lakhs.
  • the assessee is claiming relief under Section 90, 90A or 91 for whom Schedule TR and Schedule FSI applies.

How Can A Person Fill Out The Verification Documents?

When a person is filling up the data in the income tax return, he should also fill up the verification. Also, any person who makes any false or wrong statement in the return or in any accompanying schedules shall be liable to be prosecuted under Section- 227 of the Income Tax Act 1961. And on the conviction, he would be punished under this section with fine and rigorous punishment.

Important Points: – 

  • The due date for filing this form in the case of a taxpayer who is subject to tax audit is extended to 15th February 2022 when before it was 31st October 2021 for AY 2021-22.
  • The due date for furnishing the tax audit report is also extended to 15th January 2022.
  • The threshold limit was Rs. 1 crore for a tax audit has also been increased to Rs. 5 crores with effect from AY 2020-21 if the receipts of cash payer are limited to 5% and if the cash payments of the taxpayer are limited to 5%.


Is ITR-3 applicable to me, If the income is from my business and I have opted for presumptive taxation?

If a person opts for presumptive taxation of profession or business, ITR-4 will be applicable.

Is ITR-3 applicable to all the assessee who has their income from a business?

No, it is only applicable for HUF and individuals with professional and business income not chargeable under the category of presumptive taxation.

Which ITR Form is applicable for salary?

If a person has a total income of up to Rs. 50 lakh as salary and one house and property from the other sources, he can file his return of income using the Form ITR-1.