Income Tax Return Filing ITR-3

How to File ITR 3 Form Online for AY 2020-21?

The ‘Prepare and Submit Online’ option is available. You can submit the income tax return online using the e-filing platform.

To prepare and file ITR 3, follow the steps outlined below:

• Go to www.incometaxindiaefiling.gov.in to access the Income Tax e-Filing portal.
• Type your user ID (PAN), password, and captcha code, then click ‘Login’ to use the e-Filing portal. If you’re a first-time user, you’ll need to create an account on the income tax e-filing portal and follow the on-screen instructions.
• Choose the ‘Income Tax Return’ option from the dropdown menu under the ‘e-File’ menu.
• Your PAN card will be auto-populated on the ‘Income Tax Return’ page. Choose the ‘Assessment Year’ for which you need to file an ITR and the ‘ITR Form Number as ITR 3′ option.
• Choose ‘Original’ as the ‘Filing Type.’ Choose ‘ Revised Return’ if you’re filing a revised return to replace a previously filed original return.’
• Continue by selecting ‘Prepare and Submit Online’ as the ‘Submission Mode.’
• Fill in the blanks with information on your earnings, deductions, exemptions, andinvestments. Add information about your TDS/TCS, advance tax, and self-assessment tax payments.
• To avoid data loss, correctly fill out each Schedule and save the document. Periodically, click the ‘Save Draft’ button to save the ITR details as a draft.
• The saved draught is available for 30 days from the date of saving the details. The draught will not be available once you file the ITR or if the XML schema of the ITR does not change.
• Select the Verification option under the ‘Taxes Paid and Verification’ schedule.
• You can check your tax return using any of the following methods:
  • I want to use e-Verify.
  • I want to e-Verify my application within 120 days after filing.
  • I don’t want to use e-Verify and instead prefer to mail a signed ITR-V to the “Centralized Processing Center, Income Tax Department, Bengaluru – 560500” within 120 days of filing.
• Before submitting ITR 3, click the ‘Preview and Submit’ button to preview and validate all details.
• ‘Submit’ the ITR now.

To proceed to E-verification on your return, complete the steps below:

You can e-verify using the following alternatives if you select the ‘I would like to E-Verify’ option. You only need to enter the EVC/OTP when prompted.

1. EVCs can be generated at a bank ATM or using the Generate EVC option in My Account Aadhaar. OTP

2. Bank Account that has been pre-validated

3. Demat Account That is Pre-Validated

How to Use Excel to File ITR 3 Forms for AY 2020-21?

You can either fill out the ITR online through the e-filing portal or print it off using an excel tool. Both alternatives require you to submit your ITR via the e-filing system. Both solutions offer their own set of advantages for taxpayers. Many taxpayers assume that they should prepare their ITR on an excel programme, print it off, and then review the entire document.

According to the amended Income Tax Act, the income tax agency publishes the excel utility every year before the due date for filing ITR.

You can use an excel utility to file ITR 3 by following these instructions:

• Go to the IRS e-Filing website. Downloads
• From the dropdown option, choose the assessment year.
• ITR 3’s Microsoft Excel file can be downloaded here.
• Your computer will be downloaded with a zip file.
• The downloaded utility can be extracted from the ZIP file.
• Open the file and click the ‘enable content’ button to activate the content.
• Now select ‘enable macros’ from the dropdown menu.
• Always keep the following instructions in mind when using the excel programme:
• Data can be entered in the green cells.
• Fields in red must be completed.
• Use CTRL X and CTRL V instead of cut and paste. Any data can be pasted.
• Previous, calculate tax, validate, print, and help are navigation choices on the Form.
• Under each Schedule, fill in the details. Click’ verify’ on each Schedule to ensure you haven’t made any mistakes.
• Calculate the total tax after validating all schedules.
• Create the XML and save it.
• Type your user ID (PAN), password, and captcha code, then click ‘Login’ to access the e- Filing portal.
• Choose the ‘Income Tax Return’ option from the ‘e-File’ menu.
• The PAN will be auto-populated on the ‘Income Tax Return’ page.
• Choose ITR 3 for ‘Assessment Year’ and ‘ITR Form Number’.
• Choose ‘Original’ as the ‘Filing Type.’ Choose ‘ Revised Return’ if you’re filing a revised return to replace a previously filed original return.’
• Choose ‘Upload XML’ for ‘Submission Mode.’
• Select the appropriate Verification option on the ‘Taxes Paid and Verification’ page.

Finally, complete the submission and E-verification process by following the procedures below:

You can check your tax return using any of the following methods:

I want to e-Verify my application within 120 days of the filing date.

I do not wish to use e-Verify and instead mail my signed ITR-V to “Centralized Processing Center, Income Tax Department, Bengaluru – 560 500” within 120 days of filing.

Continue by clicking the ‘Continue’ button.

• Please upload the ITR XML file.
• As a method of verification, DSC can be used. The signature file generated by the DSC administration software should be attached
• As a verification option, Aadhaar OTP is available. Enter the Aadhaar OTP sent to the UIDAI-registered mobile number.
• You can use an EVC from a bank account, a Demat account, or a bank ATM as a verification option. Enter the EVC received in the mobile phone associated with your bank or Demat account.
• The ITR will be submitted in the other two verification choices, but the process of submitting the ITRs will only be complete after validation. The signed ITR-V should be delivered to CPC, Bengaluru, or the submitted ITR should be e-Verified later using the ‘My Account > e-Verify Return’ option.
• Complete the ITR and send it in.

For the evaluation year 2020-21, who should file ITR 3?

1. Individual taxpayers and HUFs are both covered by ITR 3.

2. An individual taxpayer or a HUF earned money from a proprietary business or by carrying on a profession during the financial year.

3. Individual taxpayers’ or a HUF’s total income exceeds the amount not subject to income tax. Such payment is determined before enabling deductions under Chapter VI-A of the Income-tax Act.

For each kind of taxpayer, the amount not subject to income tax is different:

If the total taxable income does not exceed the basic exemption level, but if one or more of the following requirements are met, the taxpayer must file Form ITR 3:

•  The taxpayer serves as a director of a corporation.
• During the fiscal year, a taxpayer has an investment in unlisted equity shares.
• The taxpayer is a partner in a business and earns money from it.
• Amounts or aggregates of amounts deposited in one or more current accounts held by the taxpayer exceed Rs 1 crore.
• The taxpayer bears the cost of your or another person’s travel to a foreign country. The overall cost is more than Rs. 2 lakhs.
• The taxpayer incurs an expense of more than Rs. 1 lakh due to power use.
• Along with revenue from business and profession, you can file ITR-3 for income from pay or pension, house property, and other sources.

Changes to ITR Form 3 for the 2020-21 fiscal year

The taxpayer is required to provide the cash deposits in current accounts with a bank over Rs 1 crore, international travel expenses over Rs 2 lakh, and power expenses over Rs 1 lakh.

• The ‘kind of company’ should also be stated if an individual is a firm director or owns unlisted equity investments.
• The buyer’s details, such as name, PAN or Aadhaar, percentage share of ownership, and address, must be provided in the case of short-term or long-term capital gains from the sale of land or building, or both.
• A separate schedule 112A calculates long-term capital gains on selling STT-eligible equity shares or units of a business trust.
• A taxpayer should submit information of ‘any other income’ under ‘income from other sources.’
• The deductions’ details from ‘other sources of income should be disclosed.
• The ‘Schedule VI-A’ for tax deductions has been updated to cover sections 80EEA and 80EEB.
• The ‘capital gains’ and ‘dividend’ details income should be included in the case of a business trust or investment fund.
• Section 92CE details tax on secondary adjustments to transfer price (2A).
• Details of tax deduction claims for investments, payments, and expenses made between April 1 and June 30, 2020.
• If a taxpayer selects numerous bank accounts for refund credit when providing bank account information, the income tax department may choose an account to execute the return.