ITR 3

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There are various forms that Assessees use while filing Income Tax Returns in India and the ITR-3 Form is one such form. The ITR-3 Form is used by a certain section of Tax payers as per the guidelines laid down by the Income Tax Department of India.

ITR-3 Form [1][edit]

The Income Tax Act, 1961, and the Income Tax Rules, 1962 , of India require those who have earned income in India to file Income Tax Returns with the Income Tax Department of India. The ITR-3 Form is a part of this process of filing returns and is in accordance with the rules and regulations laid down by the Government of India.

The ITR-3 Form particularly applies to those Individuals and Hindu Undivided Families who are registered as Partners in a firm. As per Rule 12 of the Income Tax Rules, 1962, this form does not apply to those who are Proprietors of a firm. it is mainly for the business which includes partnership deals. It is also applicable for professionals but it should be a partnership profession.

Eligible Assessees for the ITR-3 Form [2][3][edit]

The eligibility criteria of every Income Tax Return form are governed by a set of rules and conditions. The ITR-3 Form is applicable only to those Individuals and Hindu Undivided Families that can be placed under the following categories

  • Is a Partner in a firm
  • Gains Income through ‘Profits or gains of business or profession’
  • Gains Income by means of interest, salary, bonus, commission, remuneration, as a partner

If the partner of a firm only earns income from the firm as a share in the profits and not by any other means such as interest, bonus, salary, remuneration, or commission etc. then such an Individual or Hindu Undivided Family should file Income Tax Returns using only the ITR-3 Form,[4] and not the ITR-2 Form.

Non-eligible Assessees for the ITR-3 Form [5][edit]

Individuals and Hindu Undivided Families who are not eligible to fill the ITR-3 Form are those who have earned Income through a Business or Profession operated as a Proprietorship firm. Assessees, who apart from being a partner in a firm, also have sources of income from a business or profession, including the speculation market, are also not eligible to file their Income Tax Returns through

References[edit]

  1. ^ "INDIAN INCOME TAX RETURN" (PDF). Government of India - Income Tax Dept. Retrieved 2012-11-20. 
  2. ^ "Instructions for filling out FORM ITR-3" (PDF). Taxguru. Retrieved 2012-11-20. 
  3. ^ "Instructions for filling out FORM ITR-3" (PDF). Government of India - Income Tax Dept. Retrieved 2012-11-20. 
  4. ^ "ITR-3 - For Individuals / HUFs being partners in firms and not carrying business or Profession under any Proprietorship (2012-13)". MakeMyReturns. 8 September 2012. Retrieved 2012-11-20. 
  5. ^ "INDIAN INCOME TAX RETURN" (PDF). Government of India - Income Tax Dept. Retrieved 2012-11-20.