Filing ITR-3 Online for AY 2023-24 with Important Due Dates- A Complete Guide

Filing your income tax return (ITR) is an essential responsibility for every taxpayer. If you are an individual or a Hindu Undivided Family (HUF) with income from business or profession, you need to file ITR-3 Form. In this comprehensive guide, we will walk you through the process of filing ITR-3 Form  for the Assessment Year (AY) 2023-24, along with important due dates to keep in mind.

1. What does ITR-3 Form Mean?

ITR-3 Form is an income tax return form specifically designed for individuals and HUFs having income from business or profession. It is a detailed form that requires you to provide information about your business income, gains or losses from partnerships, and other related financial details. 

2. Who is eligible to file the ITR-3 Form?

Individuals or entities engaged in business or profession, whether subject to tax audit or not, can itr 3 form. The filed return may encompass income from house property, salary/pension, capital gains, and income from other sources. 

Also Learn; How to file Income Tax Return (ITR1, ITR2, ITR4) Practically

3. What are the Major Changes in ITR 3 Form for AY 2023-24?

The ITR 3 form for the Assessment Year 2023-24 has undergone significant changes. Here are the key modifications incorporated in the form:-

✅ A new schedule called VDA (Virtual Digital Assets) has been added to the ITR-3 form. This schedule aims to separately report income from crypto and other virtual digital assets. If you consider the income from VDAs as capital gains, you need to provide a quarterly breakup of the transactions under the Capital Gains Schedule. Each VDA transaction must be reported, including the dates of sale and purchase.

✅ The new ITR-3 form includes additional questions to determine whether you have opted out of the New Tax Regime in previous years. These questions help the tax authorities assess your eligibility and tax liabilities accurately.

✅ Foreign institutional investors, such as FII/FPI, are required to disclose their SEBI registration number in the ITR-3 form. This measure ensures transparency and enables proper identification of these investors.

✅ There is a minor change in reporting the balance sheet. As per the updated ITR-3 form, advances received from individuals mentioned in Section 40A(2)(b) of the Income Tax Act, 1961 and others should be reported under the 'Advances' category in the Source of Funds section.

✅ The newly introduced 'Trading Account' section in the ITR-3 form requires taxpayers to report their turnover and income from intraday trading activities. This addition facilitates the proper recording and assessment of trading-related transactions.

4. What are the Due Dates to file the return?

To avoid penalties and ensure a smooth filing process, it's crucial to be aware of the due dates for filing your ITR-3. Here are the important dates for AY 2023-24:

✅ July 31, 2023:

This is the due date for individuals and HUFs who are not required to get their accounts audited under the Income Tax Act.

✅ October 31, 2023:

 If your accounts need to be audited under any law other than the Income Tax Act, this is the due date for filing your ITR-3.

✅ January 31, 2024:

For taxpayers who are required to furnish a report under Section 92E (Transfer Pricing) of the Income Tax Act, the due date is extended to January 31, 2024.

5. Step-by-Step Guide to File ITR-3 Online:

Filing ITR-3 online is a convenient and hassle-free process. Here's a step-by-step guide to help you through the process:

✓Step 1. Gather the Required Documents:

 Before you begin filing your ITR-3, ensure that you have the following documents and information handy:

✅ PAN (Permanent Account Number)

✅ Aadhaar Card

✅ Bank Statements

✅ TDS Certificates (Form 16 and Form 16A)

✅ Profit and Loss Statement, Balance Sheet, and other financial statements of your business or profession

✅ Details of investments, such as Fixed Deposits, Mutual Funds, or Property

✅ Any other relevant documents related to your income and expenses

✓Step 2: Choose the Appropriate Online Portal

The Income Tax Department provides two online portals for filing ITR-3: the official e-filing website- (incometaxindiaefiling.gov.in) and the income tax department's mobile app. Choose the platform that suits you best.

✓Step 3: Register/Login and Download ITR-3 Form

If you are a first-time user, you need to register on the chosen portal. If you've already registered, log in using your credentials. Once logged in, download the ITR-3 form for AY 2023-24 in the required format (Java or Excel).

✓Step 4: Fill in the ITR-3 Form

Open the downloaded form and fill in the necessary details as per the instructions provided. Ensure accuracy and cross-check the information entered. The form consists of various sections, including Personal Information, Business or Profession Details, Tax Computation, and Tax Payments.

✓Step 5: Validate and Generate XML

After completing the form, validate the information to check for any errors or omissions. Once validated, save the form and generate the XML file.

✓Step 6: Upload the XML File

Visit the online portal and navigate to the 'Upload Return' section. Choose the assessment year and upload the XML file of your ITR-3 form. Ensure a successful upload, and verify the acknowledgement.

✓Step 7: Verify ITR-3

After uploading the XML file, you need to verify your ITR-3 form. The verification process can be completed either electronically (through Aadhaar OTP, EVC, or DSC) or by sending a signed copy of the ITR-V to the Centralized Processing Center (CPC) within 120 days of filing.

✓Step 8: Keep the Acknowledgment and ITR-V

After successful verification, download and save the acknowledgement generated by the portal. If you have chosen to verify offline, print the ITR-V and send it to the CPC address mentioned on the acknowledgement within the specified timeframe.

Conclusion:-

Filing ITR-3 online for AY 2023-24 is a crucial task that demands careful attention and adherence to deadlines. By following the step-by-step guide outlined above, you can ensure a smooth and accurate filing process. Remember to gather all the necessary documents, be aware of the due dates, and stay updated with any changes or notifications from the Income Tax Department. Filing  ITR-3 Form on time not only fulfills your legal obligations but also helps you maintain financial transparency and avoid penalties.

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