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Filing of Income Tax Return - 3

3950* Basic Package

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Overview

ITR-3 is the income tax return form for individuals earning from a proprietary business or by individual profession. But any individual who is having income as a partner in a business firm or a profession cannot file ITR-3. In such cases, you need to file ITR-2.

Eligibility to File ITR-3 online for AY 2020-21:

The ITR-3 form only applies to the individuals having income from a proprietary business or profession. If you earn from any such businesses, then as per the IT Act, you have to file the ITR-3. You can file ITR-3 only when you have income from the following sources.

1) Income earned from proprietary business

2) Income from any profession that you conduct

3) Income from house properties

4) Income from interest, salary, bonus, or commission those are chargeable to Tax under gains of business or profession.

Taxpayers who are not eligible for filing ITR-3:

Any individuals who are earning as partners in partnership business or profession are not eligible to file ITR-3. In such cases, they can file ITR-2.

Due dates for filing ITR-3 online AY 2020-21:

The due dates for filing ITR-3 is 30th November. Any individual who earns from a proprietary business should file ITR-3 before the due date. For business, due is also the same. They can file ITR-3 on or before 30th November of every year.

Advantages

1. ITR receipt is a precious document

When you file your income tax returns, the income tax department provides you a receipt in return. This receipt is a precious document. It contains more detailed data as compared to Form 16. Thus, filing your income tax returns helps you record all your taxations with revenue from different sources.

2. ITR receipt serves as address proof

When an individual files his/her income tax returns, the IT department sends the receipt to the registered address of the person/ entity. Thus, it serves you as your residential proof. You can show it as your proof of address in organizations like banks and NBFCs. 

3. Easy processing of bank loans

Filing your income tax returns offers you various benefits to avail loans. One such is easy processing of bank loans. When you apply for a bank loan, the bank will verify your eligibility. Thus, filing income tax returns makes it easier for you to avail any loan. The returns act as a strong document. It shows the poof of income to the loan provider. 

Whether it is a house credit, personal mortgage, or vehicle loan, you can show provide the copies of your ITR statements for easy processing of the bank loans.

4. Compensation of the losses in the next financial year

Until you file your income tax returns, you cannot compensate for your losses to the next financial year. According to the IT Act, if you do not file your income tax returns on time, your losses will not be adjusted. You cannot compensate losses for the next financial year. Thus, to ensure that you compensate your losses, you must file your Income-tax returns on time. 

5. Avoid extra interests

If you don’t file your income tax returns on time, you will be liable to pay extra interest 1% on the tax as a penalty. This penalty shall keep on adding until you file your returns. For example, a bank deducts taxes at source from the interest of the fixed deposit. In order to claim the refund of the TDS, you must file your taxable income. In case you don’t file your returns then you have to pay extra interest on the deposits, 

6. Avoid penalties

As per the IT Act, if an individual doesn’t file income tax returns on time, he/she will be held liable to pay the penalty up to INR10, 000. and this penalty shall keep on adding until you file your returns.

7. Easy credit card processing

When you apply for credit cards, the banks usually verify your income tax returns. So, if you don’t file your income tax returns, the bank may reject your credit card application. 

8. Hassle-free visa processing 

Sometimes the Visa Authorities may ask you the documents of your past tax returns. Thus, if you are applying for Visa, you must file your income tax returns on time. Filing the IT will eliminate all the hassles in Visa applications. You can get a Visa easily. 

9. Helpful for the freelancers and independent professionals 

The individuals who are independent professionals or freelancers don’t have form 16. Thus it might get difficult for them to avail of any financial benefits. Income tax returns are the only document that shows the proof of income for them. Thus, if you are freelancers or independent professional, you must file you ITR without wasting time. It will eliminate the funding issues and transactional problems.

Disadvantages

1. Interest loss on refunds: 

When you file for a refund in your tax returns that you paid in advance, you will lose some interest in filing your ITR late

2. Losses will not carry forward: 

If you file ITR-3 after the due dates, your losses will not be carried forward except house property losses.

3. Penalties: 

Filing the ITR late also results in a penalty of interest 1% per month. The penalty starts from the due date and continues until you make the payment.

Document Required

Documents related to interest income:  

  • It provides all the information about the interests you receive as interest from saving accounts and fixed deposits. It also includes the TDS certificate issued by the bank. When a bank deducts Tax for your interests, they provide you a statement. You should attach such a statement to your ITR-3 form.

Form 26AS:  

  • It is usually the summary of taxes deducted on your behalf. It shows all details about deductions made by deductors.

Documents to claim expenses as deductions: 

Many expenses can be shown for tax deductions. It included documents like:

  • Contribution to provident fund
  • Child’s school or tuition fee
  • Life insurance premium payment
  • Stamp duty or registration charges
  • Repayment of home loan
  • Equity-linked with mutual investments

Deductions under 80D to 80U: It includes the interest you have paid for home loans and education loans. The stock trades that you have made.  

  • Aadhar card
  • PAN card

Time Lines

  • (3 to 5 Days)
  • Purchase the Service
  • Upload / send the Documents
  • Discussion with expert
  • Filing of application with department
  • Receipt of Acknowledgement
  • Confirmation to client

Service Covered

Pricing for what you want required service

Basic

3950*
  • Return filing for a taxpayer with business taxable income upto Rs.10 lakhs.

Business

6450*
  • Return filing for a taxpayer with business taxable income upto Rs.25 lakhs.

Enterprise

9450*
  • Return filing for a taxpayer with business taxable income more than Rs.25 lakhs.
  • Notes:
  • * This price is inclusive of all Govt filing fee and excluding GST amount.

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