ITR-3 Filing (Business & Professional Income)
For proprietors and professionals maintaining books, including profit and loss and balance sheet reporting.
ITR-3 is the return for individuals and Hindu undivided families carrying on a business or profession and maintaining books of account. It is the most detailed of the individual return forms, because it carries a full balance sheet and profit and loss statement alongside the personal income schedules.
You end up here either because you do not qualify for presumptive taxation, or because you opted out of it, or because your income sources are varied enough that the simpler forms do not accommodate them.
What this costs
Assisted Tax Filing
₹4,654 plus GST
- Document collection & review
- ITR form identification
- Income computation
- Standard deduction claimed, along with 80C, 80D and 80TTA
- Your liability computed, with a clear statement of tax payable or refund due
- ITR preparation & filing
- ITR acknowledgement copy
Who files ITR-3
- Individuals and HUFs with income from a proprietary business
- Professionals maintaining regular books of account
- Partners in a firm receiving remuneration, interest or share of profit
- Anyone with business income who also has capital gains or foreign assets
- Those who opted out of presumptive taxation and are within the five-year bar
- Those whose turnover exceeds the presumptive scheme ceilings
The tax audit question
A tax audit under Section 44AB becomes necessary where turnover or gross receipts cross the prescribed threshold. A higher threshold applies where cash receipts and cash payments are each within the small percentage the Act permits, which rewards businesses that transact digitally.
A separate trigger applies to anyone who declared under presumptive taxation and then declared lower profits. Where audit applies, the report must be filed before the return, and the return deadline extends accordingly.
What the form demands that simpler ones do not
- A complete balance sheet as at the year end
- A profit and loss statement for the year
- Quantitative details of stock, for trading and manufacturing businesses
- Depreciation schedules under the Income Tax Act, which differ from book depreciation
- Details of partners and their capital, where the assessee is a partner
- Disallowances under Sections 40A, 43B and related provisions
- GST turnover reconciled against the turnover declared
How we handle it
- 1 Finalising the books The books are closed and the financial statements prepared, since the return carries them in full.
- 2 Computing business income Profit is computed under the Act, with depreciation and disallowances applied, which rarely matches the book figure.
- 3 Checking the audit trigger Turnover and cash proportions are tested against the Section 44AB thresholds.
- 4 Reconciling Turnover is reconciled against GST returns and against Form 26AS so nothing is inconsistent.
- 5 Preparing the return The return is prepared with all schedules and the computation sent for your approval.
- 6 Filing and verification The return is filed and e-verified, without which it is not treated as filed.
Frequently asked questions
When does a tax audit become necessary?
When turnover or gross receipts cross the threshold in Section 44AB. A higher threshold applies where cash receipts and payments are each within the small permitted percentage, so businesses transacting digitally often avoid it.
I am a partner in a firm. Which form do I use?
ITR-3. Remuneration, interest and share of profit from the firm are reported in your personal return, even though the firm files its own ITR-5.
Can I switch to ITR-4 next year?
Only if you are eligible for presumptive taxation and not within the five-year bar that follows opting out of Section 44AD.
Do I have to maintain books?
Yes, where income or turnover exceeds the limits in Section 44AA. ITR-3 requires a balance sheet and profit and loss statement, which presupposes books.
What if book profit and taxable profit differ?
They usually do. Depreciation rates under the Act differ from book rates, and disallowances under Sections 40A and 43B apply. The reconciliation is part of the return.
What is not included. Government fees, statutory charges, stamp duty, court and registry fees, digital signature costs and any third-party professional charges are separate and payable at actuals. GST applies on professional fees where indicated. Prices shown are indicative and may change without notice; we confirm the total in writing before any work begins — see our terms on pricing.
Talk to us about ITR-3 Filing (Business & Professional Income)
Share your requirement and our team will confirm the documents needed, the exact charges and a realistic timeline — usually the same working day.
- Expert document checking before submission
- Regular status updates on WhatsApp
- Transparent professional charges
- Assistance in Marathi & English
Request This Service
Have a Legal or Documentation Need?
Talk to our experts today. Transparent pricing, fast processing and dedicated support.