ITR-3 for AY 2020-2021

ITR-3 for AY 2020-2021

The Central Board of Direct Taxes (CBDT) issued the Guidelines for filling ITR-3 to help the taxpayers for filing the particulars in Income-tax Return Form-3 for the Assessment Year 2020-2021 relating to the Financial Year 2019-2020. The ITR-3 Form is for individuals and HUFs having income from profits and gains of business or profession. The current article briefs the Guidelines for filling ITR-3 for AY 2020-2021.

Know more about Form ITR-3 for AY 2020-21

Eligibility Criteria to file ITR-3

The ITR-3 form is to be filed by an individual or a Hindu Undivided Family (HUF) who is not eligible to file Form ITR-1 (SAHAJ), Form ITR-2, or Form ITR-4 (SUGAM) and who is having any income under the head “Profits or gains of business or professions. 

Thus persons having income from the following sources are eligible to file ITR 3:

    • Income from House Property(Income Can be from more than one house property)
    • Income from Salary and Pension
    • Income from Capital Gains or loss on the sale of property (Both Short Term and Long Term)
    • Income from Other Sources (including Winning from Lottery, bets on Race Horses, and other legal means of gambling)
    • Income from Foreign Assets
    • Agricultural Income more than Rs.5000

Assessment Year for which this Return Form is applicable 

The ITR-3 is applicable for the assessment year 2020-2021 only, that is, it relates to income earned during the Financial Year 2018-2019.

Tax Computation Details

The Computation for filing the ITR-3 is tabulated here:

Tax computation for every individual other than the resident individual who is of the age of 60 years or more at any time during the financial year 2019-2020 is as follows:

Sl.No Income Tax Liability
1 Upto Rs.2,50,000 Nil
2 Between Rs.2,50,001 – Rs.5,00,000 5% of income in excess of Rs.2,50,000
3 Between Rs.5,00,001 – Rs.10,00,000 Rs.12,500 + 20% of income in excess of Rs.5,00,000
4 Above Rs.10,00,000 Rs.1,12,500 + 30% of income in excess of Rs.10,00,000

Tax liability for an individual who is of the age of 60 years or more but less than 80 years at any time during the financial year 2019-2020 is as follows:

Sl.No Income Tax Liability
1 Upto   3,00,000 Nil
2 Between 3,00,001 – 5,00,000 5% of income in excess of 3,00,000
3 Between 5,00,001 – 10,00,000 10,000 + 20% of income in excess of 5,00,000
4 Above  10,00,000 1,10,000  +  30%    of    income   in    excess   of 10,00,000

In case of a resident individual who is of the age of 80 years or more at any time during the financial year 2019-2020

Sl.No Income Tax Liability
1 Upto   5,00,000 Nil
2 Between 5,00,001 – 10,00,000 20% of income in excess of  5,00,000
3 Above  10,00,000 1,00,000+ 30% of    income   in    excess   of 10,00,000

Procedure for filling and verification of ITR-3 

The applicant can file the ITR-3 form electronically on the e-filing web portal of the Income-tax Department and verify in any one of the following manners:

  • Digitally signing the verification part
  • Authenticating by way of electronic verification code (EVC)
  • Aadhaar OTP
  • By forwarding duly signed paper Form ITR-V (Acknowledgment) by post to CPC at the following address 
    • Centralized Processing Centre
    • Income Tax Department
    • Bengaluru— 560500
    • Karnataka

The applicant is required to furnish the following details in the income tax return form-3 (ITR-3):

  • Part A: General Information
  • Audit Information
  • Details of the Balance Sheet
  • Manufacturing Account Details
  • Trading Account Details
  • Details of the profit and loss account
  • Details of income from the business of plying, hiring, or leasing of goods carriages on a presumptive basis as per section 44AE
  • Quantitative details of trading and manufacturing account
  • Details of Income from any business activity on a presumptive basis as per section 44AD
  • Schedule S -Details of income from salaries
  • Schedule HP- Details of income from House Property
  • Schedule BP – Computation of income from business or profession
  • ScheduleDPM – Computation of depreciation admissible under the Income-tax Act
  • Schedule DOA – Computation of depreciation admissible under the Income-tax Act
  • Schedule DEP – Summary of depreciation admissible under the Income-tax Act
  • Schedule DCG – summary of deemed short-term capital gains on the sale of a depreciable asset
  • Schedule ESR – details of expenditure on scientific research
  • Schedule CG – Computation of income under Capital gains
  • Schedule OS – Computation of income under Income from other sources
  • Schedule CYLA- Statement of income after set off of current year’s losses
  • Schedule BFLA: Details of income after set off of unabsorbed loss brought forward from earlier years
  • Schedule CFL- Statement of losses to be carried forward to future years
  • Schedule-UD – Unabsorbed depreciation and allowance under section 35(4)
  • Schedule-ICDS- Effect of Income Computation Disclosure Standards on profit
  • Schedule-10AA-Deduction in respect of units located in Special Economic Zon
  • Schedule 80G- Statement of donations entitled for deduction under section 80G
  • Schedule 80D – Deduction in respect of health insurance premium
  • Schedule- RA- Details of donations to research associations etc. [deduction under sections 35(1)(ii) or 35(1)(iia) or 35(1)(iii) or 35(2AA)]
  • Schedule- 80IA, Schedule- 80IB, Schedule- 80IC, and Schedule-80-IE – details of deduction in relevant Schedule for each undertaking
  • Schedule-VIA-Deductions under Chapter VI-A
  • Schedule AMT – Computation of Alternate Minimum Tax payable under section 115JC
  • Schedule AMTC- Computation of tax credit under section 115JD
  • Schedule SPI- Income of specified persons (spouse, minor child, etc.) includable in the income of the assesses as per section 64
  • Schedule-SI –Income chargeable to tax at special rates
  • Schedule-IF- Information regarding partnership firms in which you are a partner
  • Schedule-EI – Details of Exempt Income (Income not to be included in Total Income or not chargeable to tax)
  • Schedule PTI-Pass through Income details from business trust or investment fund as per section 115UA, 115UB
  • Schedule FSI- Details of Income from outside India and tax relief
  • Schedule TR- Summary of tax relief claimed for taxes paid outside India
  • Schedule FA- Details of Foreign Assets and Income from any source outside India
  • Schedule 5A- Information regarding apportionment of income between spouses governed by Portuguese Civil Code
  • Schedule AL- Assets and Liabilities at the end of the year
  • Schedule DI – Details of Investments
  • Schedule GST – Information regarding turnover/gross receipt reported for GST
  • Details of payments of Advance Tax and Self-Assessment Tax
  • Details of Tax Deducted at Source from Salary
  • Details of Tax Deducted at Source (TDS) on Income

Note: The Form ITR-V should reach within 120 days from the date of e-filing the return

ITR-3_Notified_Form

The confirmation of the receipt of ITR V (Income Tax Return Verification Form) at Centralized Processing Centre will be sent to the taxpayer through mail ID registered in the e-filing portal

Filling out the ITR V- Income Tax Return Verification Form

After filing the ITR form – 2, the taxpayer needs to print out the Form ITRV- Income Tax Return and send it to Processing Centre, Income Tax Department, Bengaluru- 560500 (Karnataka) by ordinary post or speed post.

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 in form ITR-2.

The maximum amount which is not chargeable to income tax for Assessment Year 2020-2021 for different categories of individuals/HUF is as follows:

Sl.No Category Amount
1 An individual whose age is below 60 years or a Hindu Undivided Family (HUF) Rs.2,50,000
2 An individual, being resident in India, who is of the age of 60 years or more at any time during the previous year 2019-2020 but below the age of 80 years

Rs

3,00,000

3 An individual, being resident in India, whose age is 80 years or more at any time during the previous year 2018-2019 Rs.5,00,000

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 mentioned below is obligated to furnish his return of income

  • Deposit of amount or aggregates of the amount exceeding one crore in one or more current accounts
  • Incurred expenditure of an amount or aggregate of the amount exceeding two lakhs for travel to a foreign country for yourself or any other person
  • Incurred expenditure of amount or aggregate of the amount exceeding one lakh on the consumption of electricity

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) or exempt long term capital gains (section 10(38)), does not exceed the maximum amount which is not chargeable to income-tax but fulfils one or more conditions mentioned below is obligated to furnish his return of income

  • Deposit of amount or aggregates of the amount exceeding Rs.1 crore in 1 or more current accounts
  • Incurred expenditure of an amount exceeding two lakhs for travel to a foreign country for yourself or any other person
  • The aggregate of the amount exceeding one lakh on the consumption of electricity

Please click on the official link Guidelines for filling ITR-3 for AY 2020-2021 for reference.

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