This is third article in the series ” Which ITR is to be filed?”. This article will provide an overview of ITR 3.
Who should file ITR 3?
- Individuals and Hindu Undivided Family (HUF) earning income under the head “Income from Business or Profession”
- Individuals and HUF earning income under following heads of income (in addition to 1 above)
- Salary / Pension
- House Property ( includes income from more than house property)
- Capital Gains (Short term and Long term)
- Other Sources (includes winnings from Horse races and lottery winnings)
- ITR 3 can be filed where the assessee earns income through foreign assets (assets located outside India) in addition to 1 above
If the assessee earn beneficial interest from assets or bank accounts etc. located outside India, then ITR 3 should be filed (in addition to 1 above)
ITR 3 can be filed by Not Ordinarily Resident (RNOR) and Non Resident (NR)
ITR 3 is to be filed if the assessee is Director in any listed or unlisted company
If exempt income exceeds Rs. 5 lakhs (in addition to 1 above) then ITR 3 is to be filed
ITR 3 can be filed if the individual is eligible to and wishes to claim Relief under section 90 or 90A or 91 (in addition to 1 above)
Partners drawing income from Partnership firm or LLP (Limited Liability Partnership)
Who should not file ITR 3?
- Those who are required to file ITR 1 or ITR 2
- Those assessees having status other than Individual or HUF who do not have income from Business or Profession
- Schedule ICDS – computation of income for calculation of impact of Income Computation of Disclosure Standards on profit calculation.
- Schedule GST requires disclosure of Turnover / Gross receipts reported under GST
- ITR 3 has Schedule AL which requires disclosure of asset details if the value exceeds Rs.50 lakhs along with asset details
- If the assessee needs to declare dividend income (exceeding Rs.10 lakhs) then disclosure has to be reported under Schedule OS