All You Need To Know About The ITR-3 Form

Find out the basic details of ITR-3, who is required to file it and which incomes can be reported in this ITR.

Things You Must Know About ITR-3

Regular taxpayers would know that there are seven Income Tax Returns (ITR) under the Income Tax Act. Which form you use depends on a variety of factors, including your income type and taxpayer category. 

One of these seven ITRs is ITR-3. In this article, we try to find out all about this ITR, including its applicability and features.

  • ITR 3 is one of the seven ITRs you can use to file your annual return
  • ITR 3 is one of the most inclusive forms with multiple income disclosures
  • There have been a few new introductions in ITR 3 form
  • Professional advice may be sought while filing this return, given its complexity

When and to Whom is ITR-3 Applicable?

  • ITR-3 is meant for individuals and Hindu Undivided Families (HUF)
  • They can report their income from profits and gains from business and profession. This includes professions like law, medicine, architecture, etc.
  • Businesses and professions with or without tax audit applicability can file this return
  • Rental income from a let-out or deemed to be let out property is also reported
  • Salary and pension income can be reported in ITR-3
  • Income from other sources like lottery, interest income, dividends, etc
  • Capital gains from the sale of capital assets, including shares
  • If you have a foreign asset or financial interest in a foreign entity, you must file ITR-3
  • ITR-3 is also filed if your income from agriculture exceeds Rs 5,000
  • Professionals opting for a presumptive income scheme can file ITR-3 but must disclose additional information
  • Taxpayers with the newly taxed income from virtual digital assets must check their ITR applicability 


Who Cannot File ITR-3?


If you are an individual or HUF who is a partner of a partnership firm engaged in business or profession, you cannot file ITR-3. In your case, ITR-2 will be applicable.


Also Read: Strategies to Maximise Tax Refunds: Key Tips For Indian Income Tax Return (ITR)


A Snapshot of ITR-3


The ITR-3 form constitutes Part-A, a long line of schedules, and Part B.


Part A consists of general information, a balance sheet, a manufacturing account, a trading account, a profit-and-loss account, other information, and quantitative details. Part B consists of the computation of total income and tax liability on total income. 


Important Updates


Here are the key updates in ITR-3 that are applicable for the assessment year 2023-24 –


  • The schedule VDA was introduced to report income from crypto and other virtual digital assets. All transactions with their date of sale and purchase must be reported


Also Read: Don’t Miss Out On These Income Tax Rules If You Have Crypto Gains


  • A few questions are added for taxpayers who had opted out of the new tax regime in previous years
  • Foreign institutional investors are now required to mention their SEBI registration number
  • In the balance sheet, advances received from individuals must now be reported under “Advances” in the source of funds
  • Turnover and income from intraday trading are to be reported in Trading Account


Also Read: Don’t File Your ITR Until You Read About The New Tax Regime




Filing the correct ITR is important, as is the disclosure of correct information. Do not hesitate to consult a financial advisor for timely and correct reporting of your annual income.


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Also Read: A Step-by-Step Guide To Filing Tax Returns Using The IT Department’s Excel Utilities








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