ITR 3 Form - Know Eligibility and How to File ITR 3 Online?

1. Income generated from short or long-term capital gains

1. income from house property, salary/pension, and income from other sources.

1. Remuneration from a partnership firm

Who is not Eligible to File ITR 3 in FY 2024-25 (AY 2025-26)?

1. A person cannot file Form ITR 3 if they or the Hindu Undivided Family is a partner in a partnership firm that is engaged in business or practice since they are only qualified to file Form ITR 2.

1. Individuals who can file ITR-1, ITR-2, and ITR-4 cannot file ITR-3.

Due Date to File ITR-3 in FY 2024-25 (AY 2025-26)

The due date for filing ITR-3 is 31 September 2025 for non-audit cases and for audit cases, the due date is 31 October 2025.

Major Changes to ITR-3 for FY 2024-25 (AY 2025-26)

The major changes to form ITR-3 for AY 2025-26 are mentioned below:

1. TDS Code: The TDS section code must be provided when filing ITR-3 form. This helps in easier tracking of TDS.

1. Disclosure of Deductions: Section 80C, Section 80E, Section 80EE, Section 24(b), and Section 10(13A) have detailed fields. HRA details, policy numbers, and loan account numbers must be provided.

1. Section 44BBC: Any income that is earned from cruise shipping business must be entered under Section 44BBC under business or profession income.

1. Threshold for Reporting Asset and Liability: The limit has been increased to Rs.1 crore for mandatory reporting of assets and liabilities.

1. Capital Loss Reporting from Buyback of Shares: Capital loss from shares that are bought back on or later than 1 October 2024 must be reported.

1. Capital Gains:
   1. Detailed classification of short-term and long-term capital assets.
   2. Tax rates have been adjusted for short-term and long-term capital gains.
   3. The method for computing indexed cost has been revised.
   4. Details of capital gain must be provided separately for any before and after 23 July 2024.

Major Changes to ITR 3 for FY 2023-24(AY 2024-25)

The major changes to form ITR 3 for AY 2023 to 2024 are mentioned below -

1. There is now a new schedule VDA where you can individually record your cryptocurrency and other VDA income. A quarterly split will be required to be provided under the Capital Gains Schedule if you classify income from VDAs as capital gains. Every VDA transaction, as well as the sale and purchase dates, must be disclosed in the new ITR-3.

1. The SEBI registration number of foreign institutional investors (FII/FPI) is a further disclosure requirement.

1. In order to ascertain if you have previously opted out of the New Tax Regime, a few questions have been added to the new ITR 3 form.

1. The newly created section "Trading Account" is where turnover and earnings from intraday trading must be disclosed.

1. The balance sheet reporting has undergone a minor adjustment. Advances from people listed in Sec. 40A(2)(b) of the Income Tax Act and other sources must be disclosed on the new ITR-3 form under the 'Advances' heading in the Source of Funds section.

ITR 3 Form Structure FY 2024-25 (AY 2025-26)

Part A of ITR-3 form

Part A of the form is divided into the below-mentioned sections:

1. Part A-GEN: Personal information, filing status, audit information, and nature of business must be entered in this section.

1. Part A-BS: Sources of funds, application of funds, and no-account case must be entered.

1. Part A-Manufacturing Account: Details of the manufacturing account must be entered.

1. Part A-Trading Account: The credits to the trading account must be provided.

1. Part A-P & L: The profit and loss account details must be provided.

1. Part A-OI: Any other information will need to be provided.

1. Part A-QD: Quantitative details will need to be provided.

Schedules of ITR-3

The below-mentioned schedules must be entered in the ITR-3 Form:

1. Schedule S: The amount of salary that you earn.

1. Schedule HP: Any income that you make from house property.

1. Schedule BP: Details about the income that you make from your profession or business must be entered.

1. Schedule DPM: Depreciation on Plant and Machinery.

1. Schedule DOA: Any depreciation on other assets.

1. Schedule DEP: Summary of the depreciation on assets.

1. Schedule DCG: Deemed Capital Gains on sale of depreciable assets.

1. Schedule ESR: Any expenditure that is made on scientific research.

1. Schedule CG: Capital Gains.

1. Schedule 112A: Various information on Capital Gains that must be paid under Section 112A must be provided.

1. Schedule 115 AD: This section must be filled by non-residents.

1. Schedule OS: Any income that is generated from other sources.

1. Schedule CYLA: Information on the income after a set-off has been made for the current year's losses.

1. Schedule BFLA: Information on the income that has been set-off after the losses of earlier years have been brought forward.

1. Schedule CFL: Any information on the losses that must be carried forward to the future years.

1. Schedule UD: Any unabsorbed depreciation and allowance that comes under Section 35 (A).

1. Schedule ICDS: The outcome of the Income Computation Disclosure Standards on profit.

1. Schedule 10AA: Any deductions under Section 10AA.

1. Schedule 80G: Any donations that are entitled for deductions under Section 80G.

1. Schedule RA: Any donations that are made towards research associations. The deductions must fall under Section 35 (I) (ii), Section 35 (I) (iia), or Section 35 (2AA).

1. Schedule 80-IA: Any deductions under Section 80IA.

1. Schedule 80-IB: Any deductions under Section 80B.

1. Section 80-IC: Also known as Section 80-IE. Any deductions that come under Section 80-IC and Section 80-IE must be entered.

1. Schedule VI-A: Any deductions that come under Section VI-A must be entered.

1. Schedule AMT: Any Alternate Minimum Tax that must be paid under Section 115JC.

1. Schedule AMTC: Any tax that must be credited under Section 115JD.

1. Schedule SPI: Income of minor child, spouse, etc., that can be included in the income of the taxpayer under Section 64.

1. Schedule SI: Tax at special rates.

1. Schedule IF: Any information in regard to a partnership firm that you are a partner at.

1. Schedule EI: Any income that is exempt from tax.

1. Schedule PTI: Pass through details of the income.

1. Schedule-TPSA: Any information in regard to tax on secondary adjustments under Section 92CE (2A).

1. Schedule FSI: Any income that has been generated outside India.

1. Schedule TR: Any tax relief that has been claimed for tax paid outside India.

1. Schedule FA: Foreign asset details and any income that is generated from outside India.

1. Schedule 5A: Information regarding any income between spouses who are governed by the Portuguese Civil Code.

1. Schedule AL: Your assets and liabilities available by year's end. This section is applicable only if your income is more than Rs.50 lakh.

1. Schedule DI: Investment details under various sections.

Part B of ITR-3

The different sections that come under Part B are mentioned below:

Part B-TI: Computation of the total income.

Part B-TTI: Computation of the tax that must be paid on the total income.

Verification:

You must verify all the details that have been provided on the form.

Step by Step Guide to File ITR-3 Online for FY 2024-25 (AY 2025-26)

Follow the steps mentioned below to file returns with ITR 3 form:

Step 1: Go to the Income Tax Department's official e-filing website to file ITR-3 form.

Step 2: Enter your user ID (PAN), password, to log in to this portal.

Step 3: From the drop-down menu, select "Income Tax Return" under the "e-File" option.

Step 4: Your PAN information automatically fills this page. Select the "Assessment Year" for which you are filing the ITR now.

Step 5: Next, choose "ITR Form Number" and "ITR-3."

Step 6: "Filing Type" should be set to "Original." Select "Revised Return" if you want to file a revised return in place of an initial return that was already filed.

Step 7: Find the "Submission Mode" option and choose "Prepare and Submit Online". Now select "Continue."

Step 8: You must now give information about your income, exemptions, deductions, and investments. Then, provide the information regarding tax payments made through TDS, TCS, and/or advance tax.

Step 9: Do not forget to enter all information precisely and attentively. Also, to prevent data loss, click on "Save the Draft" sometimes.

Step 10: Select the type of verification suitable to you from instant e-verification, e-verification within 120 days of the ITR-3 filing date but at a later time, or Within 120 days of submitting a return, verification via an ITR-V that has been duly signed and forwarded by mail to the CPC (Centralised Processing Centre) is required.

Step 11: Select "Preview and Submit," then click "Submit."