Form ITR 3 (Proprietor/ Others)

ITR-3 is an Income Tax Return form applicable to individuals and Hindu Undivided Families (HUFs) who have income from business or profession. This form is commonly used by proprietors, freelancers, and professionals such as doctors, lawyers, and consultants. It also applies to individuals earning from partnership firms (excluding salary as a partner), capital gains, multiple house properties, and foreign assets. Additionally, taxpayers with directorship in a company or income from presumptive taxation exceeding the limits of ITR-4 should file ITR-3.

This form cannot be used by individuals whose income is only from salary, single house property, or other sources like interest and dividends—such taxpayers should opt for ITR-1 or ITR-2 instead. ITR-3 requires detailed financial disclosures, including profit and loss statements, balance sheets, and tax audit details (if applicable).

Filing ITR-3 is done online through the Income Tax e-Filing portal, where taxpayers can submit their returns and verify them using Aadhaar OTP, net banking, or Digital Signature Certificate (DSC). Proper filing of ITR-3 ensures tax compliance while allowing business owners and professionals to claim deductions, depreciation, and expenses against their income.

Procedure for Income Tax Filing

Simple Easy Process

Documentation

Filing Application

Deed Drafting

Verification

Uploading forms

Get Certificates

Benefits of ITR Filing

Compliance & Avoiding Penalties
Filing an ITR ensures compliance with tax laws and helps avoid penalties for non-filing or late filing. If a taxpayer’s income exceeds the exemption limit, filing ITR is mandatory. Failure to do so can result in fines of up to ₹10,000 under Section 234F of the Income Tax Act.

Claiming Tax Refunds
If excess tax has been deducted at source (TDS) or paid as advance tax, filing an ITR allows taxpayers to claim refunds. This ensures they get back the excess amount paid, improving their financial liquidity.

Easy Loan & Credit Card Approvals
ITR serves as proof of income and financial stability. Banks and financial institutions often require ITR receipts for approving home loans, car loans, and high-value credit cards. A consistent ITR history increases credibility for borrowing.

Proof of Income for Visa Processing
Many foreign embassies and consulates require ITR documents during visa applications. It acts as a financial record, ensuring authorities that the applicant has a stable income source and is financially capable of traveling.

Carry Forward of Losses
Filing an ITR allows individuals and businesses to carry forward losses (such as business losses or capital losses) to offset against future profits, reducing future tax liabilities. This benefit is not available to non-filers.

Documents Required

Identity proof

Address proof

Photograph

Contact details

Bank Statement

Other documents required will be informed by the Account Manager.

Who is Eligible to File Income Tax?
Any individual whose income falls below the taxable limit set by the government from time to time is not required to file an Income Tax Return. However, it is mandatory for entities such as Proprietorships, Partnerships, Private Limited Companies, Public Limited Companies, Societies, Joint Ventures, and other businesses to file their tax returns within the prescribed due date.

Is it Compulsory to Pay Tax?
Tax liability arises only after deducting eligible expenses and exemptions from the total income. The final tax amount is determined as per the income tax slabs set by the Income Tax Department. If the taxable income is zero (nil return), no tax payment is required.

How to Claim a Refund from Income Tax?
To check the refundable tax amount, taxpayers can download Form 26AS, which contains details of the TDS deducted on their salary, rent, commission, professional fees, or other sources of income. A tax refund can be claimed by filing an Income Tax Return (ITR) and ensuring accurate reporting of tax deductions.

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