ITR3 is to be used by an individual or an Hindu Undivided Family who is a partner in a firm and where income chargeable to Income Tax 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, by whatever name called, due to, or received by him from such firm.
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, he shall use ITR3 form only and not Form ITR-2.
ITR3 form should not be used by an individual whose total income for the assessment year 2013-14 includes profits from Business or Profession under any proprietorship.
ITR3 can be filed with the IT Department in any of the following ways, –
- by furnishing the return in a paper form;
- by furnishing the return electronically under digital signature;
- by transmitting the data in the return electronically and thereafter submitting the verification of the return in Return Form ITR-V;
- by furnishing a Bar-coded return.
A resident assessee having any assets (including financial interest in any entity) located outside India or signing authority in any account located outside India, shall fill out schedule FA and furnish the return in the manner provided at either (ii) or (iii) above.
From the assessment year 2013-14 onwards all the assessees having total income more than 5 lakh rupees are required to furnish the return in the manner provided at (2) or (3) above. Also in case of an assessee to whom Schedule FSI and Schedule TR apply, has to furnish the return in the manner provided at (2) or (3) above.
Where the ITR3 is furnished in the manner mentioned at point number 3, the assessee should print out two copies of Form ITR-V. One copy of ITR-V, duly signed by the assessee, has to be sent by ordinary post to Post Bag No. 1, Electronic City Office, Bengaluru–560100 (Karnataka). The other copy may be retained by the assessee for his record.