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Legal Darbar is providing the ITR-3 Return filing service, which is an income tax return form for individuals and Hindu Undivided Families (HUFs) having income from businesses or professions. It applies to those earning from proprietorship businesses, working for themselves, or providing professional services, along with other income sources like salary, house property, capital gains, or foreign property. Taxpayers must provide details of profit and loss statements, balance sheets, GST information, and tax payments. Filing can be done online through the Income Tax portal using Form 26AS, AIS, and DSC. This return is essential for self-employed individuals and business owners to report their earnings and claim expenses effectively. legaldarbar.com

The legal darbar will tell who should file an ITR-3 return filing.

1. Business or Professional Income:

  • If you operate a business or work as a contractor or professional (e.g., doctor, lawyer, consultant).
  • If you have income from partnership firms (excluding repayment earned as a partner, which falls under ITR-2).

2. Other income sources:

  • Salary/pension Income
  • House Property Income (Rent or Self-Occupied)
  • Capital Gains Stocks, Mutual Funds, Real Estate, etc.
  • Other Sources (interest, dividends, etc.)
  • Foreign Income and Liabilities

3. If You Are Subject to a Tax Inspection:

  • If your business turnover exceeds ₹1 crore
  • If your professional receipts exceed ₹ 50 lakh.
  • If you choose the probable taxation scheme under Section but exceed the required limitations.

4. Income from Futures and Options (F&O) or Daily Trading:

  • If you trade F&O on a daily basis, trading in goods and services stock.

Need Help ?

    Legal Darbar provides the best advantages for ITR-3 return filing:

    1. Legal Compliance and Avoiding Penalties:

    • Filing on time can help avoid penalties of up to ₹10,000 under Section 234F.
    • Ensures complying with the Income Tax Act, so avoiding legal difficulties.

    2. Claim Business and Professional Deductions:

    • Rent, salary, travel, office expenses, impairment, and other company expenses are all allowable deductions.
    • It helps to lower taxable income and overall tax liability.

    3. Carry Forward of Losses:

    • Business losses can be carried forward for up to eight years and used against future profits.
    • Helps in tax savings in future years.

    4. Requirement for Loans and Credit Services:

    • Banks and financial institutions require ITR proof for loan applications.
    • A good earning history improves reputation for loans, business loans, and credit cards.

    5. Claiming Tax Refunds:

    • If extra tax has been paid (TDS or advanced Tax)
    • Filing ITR-3 allows you to claim your refunds quickly.

    6. Global Income and Foreign Transactions:

    • Individuals must record any overseas income, investments, or assets.
    • Encourages compliance with domestic and international tax regulations.

    7. Proof of Income and Investment:

    • Essential for visa applications, company growth, and government contracts.
    • Serves as income proof for a variety of financial operations.

    Legal Darbar will tell the importance of ITR-3 return filing:

    1. To maintain a basic deduction level, you must file an ITR: 

    • Failure to file might result in fines under the Income Tax Act of 1961.
    • Late filing might result in a penalty of up to ₹5,000 (under section 234F).

    2. Deductions & Refunds:

    • Assists in claiming deductions under Sections and more.
    • If you have had excess tax deducted (TDS), you can obtain a refund by filing an ITR.

    3. Loan and Credit Card Approval:

    • ITR filings are accepted as proof of income by banks when applying for loans such as home, personal, and vehicle loans.
    • Higher ITR filings boost the reputation and speed up the loan approvals.

    4. Carry Forward Losses:

    • ITR-3 allows you to carry forward business losses to make up for future profits.

    5. Visa and Citizenship Benefits:

    • Many nations, like the USA, UK, and Canada, need ITR proof of financial stability for the past 2-3 years when applying for visas.

    6. Proof of Income for Self-Employed Individuals:

    • Unlike salary-based employees, business owners, freelancers, and professionals (e.g., doctors, lawyers, consultants) do not receive Form 16.
    • ITR-3 serves as an official document that confirms their earnings.

    7. Avoiding Income Tax Liabilities:

    • Filing the correct ITR-3 reduces the possibility of getting letters from the tax department for hidden income. legaldarbar.com

    Documents Required for ITR-3 Filing:

    1. Personal Information: 

    • PAN Card Aadhaar Card of the person.
    • Bank Account Details (Bank name, IFSC, Account number, etc.) of that particular person. 

    2. Income Documents: 

    • Salary/Pension Income
    • Form 16 from your employer
    • Salary slips 
    • House Property Income 
    • Rental agreement
    • Home loan 
    • Interest certificate 
    • Municipal tax receipts
    • Capital Gains Income
    • Stock trading statement (for shares, mutual funds) 
    • Property sale contract 
    • Purchase contract of the sold property 
    • Interest documents from banks, post offices, etc. 
    • Dividend income statement 
    • PPF/NSC interest details 

    3. Investment and deductions documents:

    • LIC/PPF/EPF receipts 
    • ELSS/Mutual Fund investment proofs 
    • Home loan interest & principal payment receipts 
    • Tuition fee receipts 
    • Medical insurance premium receipts 

    4. Foreign Income & Assets: Details of foreign bank accounts, properties, and income sources 

    5. Tax Payments: Form 27AS used for verifying TDS Details Advance tax/ self-evolution tax payment challans. legaldarbar.com

    FAQs for ITR-3 Return filing?

    ITR-3 is for individuals/HUFs who obtain income from a business or profession, including partnership firms. It consists of earnings from salaries, real estate, investments, and other sources.

    The filing due date for ITR-3 is July 31 for non-audit cases and October 31 for taxpayers in India who require a tax inspection.

    ITR-3’s “Income Details” section includes pay, house property income, business/professional income, gains from investments, other sources, tax-free earnings, and reduction losses.

    Yes, you can claim deductions in ITR-3, including under Sections 80C to 80U, if eligible, for investments, insurance, loans, and other specified expenses.

    Yes, limitations include income below the taxable limit, technical portal concerns Otherwise, late filing penalties are imposed under Section 234F.

    If you miss the ITR-3 due date, then you can file a late return by December 31 with a late charge penalty fees and interest under Sections 234F and 234A.

    Yes, the Income Tax Department has specified an exact structure for ITR 3. It contains plans for income, deductions, taxes, and disclosures, mainly for business and professional income.

    You can validate your ITR-3 through online using Aadhaar OTP, net banking, or DSC and through offline by submitting a signed ITR-V to CPC Bangalore.

    In order to handle ITR-3 filing for professionals and businesses, Legal Darbar analyzes sources of income, verifies compliance, prepares documentation, minimizes tax liabilities, and files correctly.

    Audit Booking, ROC Compliances Booking Open for Assessment Year 2025-26 / The due date of filing of ITRs for AY2025-26, which are due for filing by 31st July 2025 has been extended to 15th September 2025.