Personal & Corporate Tax

  What is ITR-3 Form? ITR 3 is the form used by the individuals and Hindu Undivided Families who are registered as ‘Partners’ in a firm. This form is not applicable to the proprietors of the firm. This is applicable for the professionals but in a partnership profession. The partner must be earning income in the form of interest, salary, bonus, commission, etc. ELIGIBILITY TO FILE ITR-3: ITR-3 is Prepared, when: • Income earned from Proprietary Business • Income gained by conducting a profession • Income from House property • an individual or an HUF is a partner in a firm AND where the Partner gets income under the head "Profits or gains of business or profession" does not include any income except the income by way of any interest, salary, bonus, commission or remuneration, due to, or received by him from such firm. The amount not chargeable to income tax is different for each category of the taxpayer: If the total income chargeable to tax does not exceed the basic exemption limit but any of the following conditions are satisfied, then the taxpayer needs to file ITR 3: 1. The taxpayer holds the position of a director in a Company 2. Taxpayer holds an Investment in unlisted equity shares at any point of time during the financial year 3. The taxpayer is a partner in a firm and has income from the firm 4. Deposit of amount or aggregates of amount exceeds Rs 1 crore in one or more current accounts held by the taxpayer 5. The taxpayer incurs an expense for travel to a foreign country for yourself or any other person. The total amount of expense exceeds Rs. 2 lakhs 6. The taxpayer incurs an expense on the consumption of electricity of an amount exceeding Rs. 1 lakh. 7. You can also file income from salary or pension, house property, and other sources along with income from business and profession under ITR-3 In case a partner in the firm does not have any income from the firm by way of interest, salary, etc. and has only exempt income by way of share in the profit of the firm, the assessee shall use this form only; not Form ITR-2. IN-ELIGIBILITY TO FILE ITR-3: An Individual or HUF who is earning income as a partner of a partnership firm which is engaged in a business/profession is not eligible to file ITR-3. In this case, he can file ITR 2. This ITR Form should not be used by an Individual or HUF who is eligible to file ITR-1, ITR-2 or ITR-4. PENALTY PROVISION AS PER INCOME TAX ACT1961: As per section 234F of the Income Tax Act where a person is required to mandatorily furnish a return of income under section 139, fails to do so by the due date, attracts levy of late fee under this section to the amount of Rs 5,000/-, if the return is furnished on or before the 31st day of December of the assessment year; Rs 10,000/-, in any other case: In case the total income of the taxpayer does not exceed Rs 5,00,000/- then, the late fee payable shall not exceed Rs 1,000/- in any circumstances. Section 234F was made applicable in respect of Income Tax Return filed on or after the 1st April, 2018. MODE TO FILE INCOME TAX RETURN: Filing ITR in India is completely online and paperless. • In online mode, file return online and e-verifying the ITR V through net banking/Aadhaar OTP/EVC. • By feeding the data electronically and then submitting the physical copy of the return in the form of ITR-V to CPC, Bengaluru. All taxpayers filing the ITR-3 form and who require a tax audit must file the ITR-3 form using a digital signature. Assesse filing ITR-2 form under the third method must complete the acknowledgment in ITR-V. NOTE- When Individual/Tax Payer furnish the ITR-1 return using electronic medium, the acknowledgement will be seen in the inbox of the registered email id. It can also be downloaded from the official income tax website manually. After downloading the acknowledgement, you need to sign the form and then send to the CPC office, Bangalore through registered/Speed post before completing 120 days counting from the e-filing date. On the other side, it is not required to send the ITR V to the CPC if EVC/OTP option is used. DUE DATE OF ITR FOR AY2020-2021: The due date for filing income tax return is as follows, for individuals and business: • FY 2019-20 (AY 2020-21): 10th Jan 2021 for Non-audit Cases and 15th Feb 2021 for Audit Cases • FY 2020-21 (AY 2021-22): 30th September 2021 (Revised) for Non-audit Cases and 30th November 2021 (Revised) for Audit Cases. Annexure-less ITR Form: No document (including TDS certificate) should be attached to this ITR Form. Exemption Limit For Tax Payer: Category of Taxpayer Amount-

1. Hindu Undivided Family (HUF) or an individual who is below the age of 60 years or Rs 2,50,000
2. An individual, being resident in India, who is of the age of 60 years or more but below the age of 80 years Rs 3,00,000
3. An individual, being resident in India, who is of the age of 80 years or more Rs 5,00,000• The taxpayer should disclose
4. Changes In ITR 2 For Assessment Year AY 2020-21:

 the amount of cash deposits above Rs 1 crore in the current accounts with a bank,  expenditure incurred above Rs 2 lakh on foreign travel  Expenditure incurred above Rs 1 lakh on electricity. • In case an individual is a director in a company or holds unlisted equity investments, the ‘type of company’ should also be disclosed. • In case of short-term or long term capital gains from sale of land or building or both, the details of the buyer(s) i.e. name, PAN or Aadhaar, percentage share of ownership and address have to be given. • A separate schedule 112A for the calculation of the long-term capital gains on the sale of equity shares or units of a business trust which are liable to STT. • Under ‘income from other sources’, a taxpayer should provide the details of ‘any other income’. • The details of the deductions against ‘income from other sources’ should be provided. • The ‘Schedule VI-A’ for tax deductions is amended to include deduction under section 80EEA and section 80EEB. • In the case of a business trust or investment fund, the details of ‘capital gains’ income and ‘dividend’ income should be provided. • The details of tax on secondary adjustments to transfer price under section 92CE(2A). • The details of tax deduction claims for investments or payments or expenditure made between 1 April 2020 until 30 June 2020. • While providing the details of bank accounts, if a taxpayer selects multiple bank accounts for credit of refund, the income tax department may choose any account for processing the refund. Structure of Form-ITR 3? ITR-3 is divided into: • Part A • Part A-GEN: General information and Nature of Business • Part A-BS: Balance Sheet as of March 31, 2020, of the Proprietary Business or Profession • Part A- Manufacturing Account: Manufacturing Account for the financial year 2020-21 • Part A- Trading Account: Trading Account for the financial year 2020-21 • Part A-P&L: Profit and Loss for the financial Year 2020-21 • Part A-OI: Other Information (optional in a case not liable for audit under Section 44AB) • Part A-QD: Quantitative Details (optional in a case not liable for audit under Section 44AB) • Schedule-S: Computation of income under the head Salaries. • Schedule-HP: Computation of income under the head Income from House Property • Schedule BP: Computation of income from business or profession • Schedule-DPM: Computation of depreciation on plant and machinery under the Income-tax Act • Schedule DOA: Computation of depreciation on other assets under the Income-tax Act • Schedule DEP: Summary of depreciation on all the assets under the Income-tax Act • Schedule DCG: Computation of deemed capital gains on the sale of depreciable assets • Schedule ESR: Deduction under section 35 (expenditure on scientific research) • Schedule-CG: Computation of income under the head Capital gains. • Schedule 112A: Details of Capital Gains where section 112A is applicable • Schedule 115AD(1)(b)(iii)Proviso: For Non Residents Details of Capital Gains where section 112A is applicable • Schedule-OS: Computation of income under the head Income from other sources. • Schedule-CYLA-BFLA: Statement of income after set off of current year’s losses and Statement of income after set off of unabsorbed loss brought forward from earlier years. • Schedule-CYLA: Statement of income after set off of current year’s losses • Schedule BFLA: Statement of income after set off of unabsorbed loss brought forward from earlier years. • Schedule CFL: Statement of losses to be carried forward to future years. • Schedule- UD: Statement of unabsorbed depreciation. • Schedule ICDS – Effect of Income Computation Disclosure Standards on Profit • Schedule- 10AA: Computation of deduction under section 10AA. • Schedule 80G: Statement of donations entitled for deduction under section 80G. • Schedule RA: Statement of donations to research associations etc. entitled for deduction under section 35(1)(ii) or 35(1)(iia) or 35(1)(iii) or 35(2AA) • Schedule- 80IA: Computation of deduction under section 80IA. • Schedule- 80IB: Computation of deduction under section 80IB. • Schedule- 80IC/ 80-IE: Computation of deduction under section 80IC/ 80-IE. • Schedule VI-A: Statement of deductions (from total income) under Chapter VIA. • Schedule AMT: Computation of Alternate Minimum Tax Payable under Section 115JC • Schedule AMTC: Computation of tax credit under section 115JD • Schedule SPI: Statement of income arising to spouse/ minor child/ son’s wife or any other person or association of persons to be included in the income of the assessee in Schedules-HP, BP, CG and OS. • Schedule SI: Statement of income which is chargeable to tax at special rates • Schedule-IF: Information regarding partnership firms in which assessee is a partner. • Schedule EI: Statement of Income not included in total income (exempt incomes) • Schedule PTI: Pass through income details from a business trust or investment fund as per section 115UA, 115UB • Schedule TPSA: Secondary adjustment to transfer price as per section 92CE(2A) • Schedule FSI: Details of income from outside India and tax relief • Schedule TR: Statement of tax relief claimed under section 90 or section 90A or section 91. • Schedule FA: Statement of Foreign Assets and income from any source outside India. • Schedule 5A: Information regarding apportionment of income between spouses governed by Portuguese Civil Code • Schedule AL: Asset and Liability at the end of the year(applicable where the total income exceeds Rs 50 lakhs) • Schedule GST: Information regarding turnover/ Gross receipt reported for GST • Part B-TI: Computation of Total Income. • Part B-TTI: Computation of tax liability on total income. • Verification DOCUMENT REQUIRED FOR FILING ITR-3: • Aadhaar card copy. • Form 16 issued by employer in case salary income is earned. • Month wise salary slip where form 16 is not been issued by the employer in case salary income is earned. • Rent receipts in case of rental income and rental agreement. • Bank statement for the financial year for interest on savings account. • Form 16A or Interest Statement issued by Banks for Fixed Deposit Interest Income. • In case of capital gains, tax profit and loss or capital gain statement issued by the Share broker. • Chapter VIA Investment details for claiming deduction as follows: • Receipt of children’s school tuition fees. • Life insurance premium receipt. • Stamp-duty and registration charges. • Principal repayment on your home loan. • Equity Linked Savings Scheme/Mutual funds investment. • Mediclaim payment receipt etc. • Profit and loss statement and Balancesheet for the previous year • Details of Chartered Accountant conducting Tax audit in case the person is covered under section 44AB. • Copies of books of accounts required to be maintained as per section 44AB i.e. Cash book, Journal book, Sales and Purchase register in case of business and Receipt book in case of profession. SERVICE PROVIDED & PROCESS: • Collection of necessary documents such as Form 16 (TDS Certificate issued by the employer in case tax is deducted from salary), Form 16A ( issued by the bank for TDS deducted on the interest payment on the fixed deposit) in the TRACES format & capital gain statement. TDS certificate should be digitally signed by the taxpayer. • Download Form 26AS & cross check with TDS certificate to ensure that tax deducted from taxpayer salary or from taxpayer interest income is deposited with the government. • In case of any error, rectify Form 26AS. If the error is not rectified, taxpayer won’t be able to claim credit on deducted tax. • Next step is to calculate total income chargeable to tax. • After this, taxpayer needs to calculate tax liability. • Once all the taxes are paid, taxpayer can proceed for Income Tax Return filing. taxpayer can only claim for refund if taxpayer file income tax return. • Verification of Income Tax Return • Receive e-verification acknowledgement • Department will process taxpayer return and will communicate through mail. CHOOSE REQUIRED PLAN: • Basic: ITR-3 FILING for taxable income less than 20 lakhs  Service Fees- 2999/- Including Taxes • Standard: ITR-3 FILING FOR for taxable income less than 50 lakhs Service Fees- 5999/- Including Taxes • Ace: ITR-3 FILING for taxable income less than 100 lakhs  Service Fees- 9999/- Including Taxes Working Process : >Choose your Plan and Pay Securely. > Upload required document > A Tax expert will be assigned to you for the procedure of submission of the application. > Our Tax Expert will complete process required for your work along with the necessary assistance over call during business hours. FREQUENTLY ASKED QUESTION (FAQ): Q-Is balance sheet compulsory for ITR 3? Yes, it is compulsory to fill the schedules 'Balance sheet' and 'P&L' in ITR 3 if you have income from business. It is so, even if you have income from speculative business only and no income from any other business. Q-what is the due date to file ITR-3 Form? Due date for filing income tax return is 31st July for Individuals and 30th September for Businesses. Q- ITR-3 is applicable for all assessees having a business income? No, ITR-3 will be applicable for Individuals or HUF having business and profession income not chargeable under presumptive taxation. Q- How an Acknowledgement in ITR-V is Filed Out? After furnishing all the necessary details, the assessee should print out two copies of Form ITR-V (verification). One copy of ITR-V, properly signed by the assessee, has to be posted to Post Bag No. 1, Electronic City Office, Bengaluru–560100 (Karnataka). The other copy can be held back by the assessee for his record. Q-what is the amended income tax return? • Income Tax section allows reducing the ITR if the new ITR includes oversight or wrong report accidentally • A taxpayer can register the amended return up to the end of Annual Year (2018-2019, 31 March 2020) or before the conclusion of the assessment whichever is prior ***