ITR 3 form is a crucial filing option for individuals and Hindu Undivided Families (HUFs) who engage in business or professional activities. Here’s what you need to know: Who is Eligible to File ITR 3? ITR 3 is meant for individuals and HUFs who have income from profits and gains of business or profession, as per the Income Tax Department. Step-by-Step Guide to Filing ITR 3: Gather PAN, Aadhaar, bank details, Form 16 (if applicable), and detailed records of business/profession income and expenses. Visit https://www.incometax.gov.in/iec/foportal/. Select ITR 3 for the relevant assessment year. Enter all required personal, income, and tax details, including balance sheet and profit & loss account information. Use the portal’s tools to validate your entries and calculate your tax liability. Upload your return and complete e-verification via Aadhaar OTP, net banking, or other approved methods. Save the ITR-V acknowledgement for your records. Recent Updates for ITR 3 Filing: AY 2024-25 Filing ITR 3 for Assessment Year 2024-25 comes with several important changes, as highlighted by the Income Tax Department:Many taxpayers are unable to select ITR 1 or 4. If you have special income taxed at special rates (such as lottery winnings under section 115BB), only ITR 2 or 3 are available.With the new tax regime now the default from AY 2024-25, most deductions (except for a few like 80CCH/80JJAA) are disallowed unless the old regime is specifically chosen in the ITR form. To claim deductions, select the old regime in the “Personal Information” or “General” section during filing.Special incomes such as lottery or horse race winnings also make ITR 1 and 4 unavailable. Taxpayers should check Form 26AS and AIS to ensure correct reporting.If deductions like HRA, interest on self-occupied property, or VIA chapter deductions appear greyed out, it’s because the new regime is set as default. To claim these, opt for the old regime. Additionally, once Form 10IEA for opting out of the new regime is submitted, changes cannot be made for the same year. (Disclaimer: The above article is meant for informational purposes only, and should not be considered as any investment advice. ET NOW DIGITAL suggests its readers/audience to consult their financial advisors before making any money related decisions.)
Who can file ITR 3: eligibility, steps to file, recent updates, assessment year 2024-25
