The Income Tax Department has released ITR Form-3 which is relevant for Assessment Year 2017-18 (Financial Year 2016-17). The last date to file the return of income is 31st July 2017 when tax audit is not required to be done (In case of tax audit is required to be done, the due date is 30th September). Let us have a look on who is eligible to use this return form and what is the procedure to use this form. This form can be used by those Individuals or HUFs who have income from proprietary business or profession. Note: A person who is liable for tax audit has to compulsorily file his return electronically. You have to fill the basic details in this part including section under which return is filed. Also, a person is required to mention whether he is liable to maintain books of accounts as per section 44AA and whether he is liable for tax audit under section 44AAB. If a person is liable for tax audits, audit details like name and membership no of auditor, date of audit report etc. have to be mentioned. Select the nature of business from the drop down menu and mention the trade name. Balance sheet as on 31st March 2017 and profit and loss for the financial year 2016-17 has to be filed in the format provided in the return in case you were required to maintain accounts of the business or profession during the year. In case you were not required to maintain books of accounts then fill the information in “no accounts case’ section as bellows: Part A- OI (other information) and QD (quantitative details) It is optional to fill these details (OI and QD) if you were not liable for tax audit under section 44AB. When you were liable for tax audit, these details are compulsorily to be filled and the details that are mentioned here shall match with the same details in the tax audit report. In Quantitative details stock details have to be given by a trading or a manufacturing concern. Purchases are to be shown exclusive of taxes. If it is not possible to segregate the tax amount then the tax amount may be included. If you were employed by more than one employer during the year, provide the details for both the employments. You can use Form 16 to fill the salary details in the schedule. The computation of income under this head will start from the net profit shown in Part A- P&L. Any item of allowance of disallowance under the Income Tax Act is taken into consideration here. Profit from non-speculative business, speculative business and specified business under section 35AD will all be taken here. Set-off of business losses will be specified in item ‘E’ of the schedule. Losses from speculative business or specified business are not allowable to be set off with normal business profits. Schedule-DPM, Schedule DOA, Schedule DEP and Schedule DCG Schedule DPM shows the depreciation on plant and machinery while schedule DOA shows depreciation on other assets. Schedule DEP is a summary of depreciation charged on all assets. If any short term capital is deemed as calculated in the schedules DPM or DOA it has to be shown in schedule DCG (Deemed capital gains). Any amount that is allowed under section 35 on scientific research has to be entered here. Remember that depreciation can’t be claimed on assets on which deduction is taken. Details of deduction under section 35CCC and 33CCD are also to be mentioned here. Schedule OS: Income from other sources Here, the set-off of losses from various heads of income will be done as per the applicable provisions automatically. Example, the loss of business can be set-off from any income other than salary. Any loss which could not be set-off entirely will be carried forward to next year as per the applicable provisions. Also, the current income remaining after set-off will be reflected under this schedule. After the losses of current year have been set-off, the losses of previous years which are brought forward to this year are set-off against the current year income as per the applicable provisions. In column 5, current year income after set-off of losses is reflected. In this schedule, the summary of losses carried forward from earlier years, their set-off from the current year and any loss which is still left for carry is provided for each assessment year. In this Schedule, the details of brought forward unabsorbed depreciation and brought forward unabsorbed capital expenditure of scientific research under section 35 for each assessment year, depreciation and allowance for capital expenditure of scientific research under section 35 set-off against the current year’s income and the balance unabsorbed depreciation and unabsorbed capital expenditure of scientific research to be carried forward to the next assessment year are mentioned. Deviation from each ICDS that has an effect on profit is to be filled in column(iii) of the said Schedule. The assessee is required to fill the details of computation of AMT payable under section 115JC (special provisions for payment of tax by certain persons other than a company). The tax liability under the section shall be 18.5 percent of the adjusted total income computed under the said section. Credit for AMT paid in excess of normal tax liability, is allowed to be set-off against the normal tax liability of current assessment year. The amount of credit is restricted to normal tax liability for the current assessment year exceeding the AMT liability for the current assessment year. Details of income of specified persons being spouse, minor child etc. as per the clubbing provisions have to be provided (name and PAN of person, relationship, nature and amount of income). For the income of minor child, a deduction of ₹ 1,500 is available per child. Mention the income included in Schedule-CG and Schedule-OS which is chargeable to tax at special rates. Such income will be taken from the appropriate columns in schedule BFLA/CYLA or schedule OS as indicated. Mention the name of the firm, PAN of the firm, % of profit sharing, amount of profit share and capital balance as on 31st March. In this schedule, incomes which are exempt from tax have to be mentioned. Example: dividend in excess of ₹ 10 lakhs. Income received from business trust or investment fund has to be mentioned. The name and PAN of trust or fund has to be mentioned along with the amount of income various heads. This allocation of income will be as per the form provided by the trust or fund. TDS, if deducted has to be filed. The income which is received from outside India (already included in total income) has to be mentioned. Country code has to be selected from the drop down menu. TIN of assessee in the other country has to be mentioned. In its absence, passport number has to be mentioned. Relief of tax will be calculated based on the tax paid outside India and tax payable on such income in India. Based on the previous schedule, summary of tax relief will be made here. Read points to take care while sending ITR-V to the income tax department.
Who can use this form?
How to file the return?
Content of the form and guide to fill each part
PART-A- General
Part A- Nature of business
Part A- Balance sheet and profit and loss account
Schedule S: Salary
Schedule HP: Income form house property
Schedule BP: Income from business or profession
Schedule ESR (Deduction under section 35, 35CCC, 33CCD)
Schedule CG: Capital Gains
Schedule CYLA: Set-off of current year losses
Schedule BFLA: Details of income after set-off of losses from previous years
Schedule CFL: Carry forward of losses to future years
Schedule UD: Unabsorbed depreciation
Schedule ICDS: Effect of Income Computation and Disclosure Standards on profits
Schedule AMT: Alternate Minimum Tax
Schedule AMTC: AMT Credit
Schedule SPI: Income of specified persons includible in your income
Schedule SI: Income chargeable to tax at special rates
Schedule IF: Information of firms in which you are partner
Schedule EI: Exempt income
Schedule PTI: Pass through income
Schedule FSI: Income from outside India and relief of tax
Schedule TR: Summary of tax relief for taxes paid outside India
Schedule FA: Foreign assets and income from sources outside India
Schedule AL: Schedule of assets and liabilities
How to verify the return?
Detailed guide to file ITR Form 3 – applicable for AY 2017-18 (FY 2016-17)
