HOW TO FILE ITR-3 ONLINE: SIMPLIFIED INCOME TAX RETURN FILING PROCESS

INTRODUCTION

Income tax return filing for professionals and business owners is more than a legal obligation; it’s a key part of responsible financial planning. For individuals and Hindu Undivided Families (HUFs) with income from business or profession, filing IT return through the appropriate form ensures compliance, avoids penalties, and simplifies financial documentation for future needs.

Among the multiple ITR forms notified by the Income Tax Department, ITR-3 is designed specifically for individuals and HUFs who earn income from proprietary business or profession. If you fall into this category, this article will walk you through everything you need to know, including how to file ITR 3 online, eligibility criteria, important deadlines, and the documents required.

TMWala can assist you throughout the process from selecting the correct form to ensuring accurate data entry and submission, making tax filing stress-free and accurate.

WHO SHOULD FILE ITR 3

Understanding who should file ITR 3 is the first step. The ITR-3 form applies to:

• Individuals or HUFs earning income from a proprietary business or from carrying out a profession, such as doctors, lawyers, consultants, architects, etc.
• Partners in firms where the firm itself is not taxed (i.e., income is taxed in the hands of the partner).
• Individuals with income from salary or pension, house property, capital gains, and other sources, in addition to business or professional income.
• Individuals with foreign assets or foreign income.
• Individuals earning agricultural income exceeding ₹5,000.

It is important to note that those who are eligible to file ITR-1 or ITR-2 cannot use ITR-3. Similarly, companies, LLPs, and trusts are also not allowed to use this form. To know more, visit: https://incometaxindia.gov.in/forms/income-tax%2520rules/2024/itr3_english.pdf

INCOME TAX RETURN FILING ONLINE: STEP-BY-STEP PROCESS

Income Tax Return filing online has become streamlined through the Income Tax Department’s e-filing portal. Below are the steps for how to file ITR 3 online for FY 2024–25:

Step 1: Log in to the Income Tax Portal

Visit the official Income Tax e-Filing website and log in using your PAN/Aadhaar number, password, and captcha. Visit here: Home | Income Tax Department

Step 2: Select Assessment Year and Filing Mode

Choose the relevant assessment year, which is AY 2025–26 for income earned in FY 2024–25. Select the online filing mode.

Step 3: Choose Filing Status

You will be prompted to select your filing status: Individual, HUF, or Others.

Step 4: Select ITR Form

Choose the applicable form ITR-3 based on your sources of income. If you are filing for professional or business income, this is the correct form.

Step 5: Choose Reason for Filing

You must specify your reason for filing, which may include:

• Your total income exceeds the basic exemption limit.
• You meet specific conditions that make ITR filing mandatory.
• You are claiming a tax refund.

Step 6: Fill in All Information

The portal auto-calculates your tax liability based on the provided details. Ensure they are accurate.

Then proceed to:

• Report salary income from Form 16 if you are a salaried individual.
• Disclose income from house property.
• Provide financial statements, including profit and loss and balance sheet, for a business/profession.
• Add details of capital gains, if any.
• Include income from other sources, like interest and dividends.
• Claim applicable deductions under Sections 80C, 80D, 80G, 80E, and others.

TMWala offers guided services to help professionals accurately report all income sources and claim eligible deductions, eliminating the risk of missing crucial details.

Step 7: Validate, Submit, and E-Verify

After confirming the summary and validating the return, submit it and proceed to E-Verify using Aadhaar OTP, Net Banking, EVC, or by sending a signed ITR-V to the Centralised Processing Centre(CPC) Bengaluru.

DOCUMENTS REQUIRED FOR ITR FILING

Whether you are a salaried employee, business owner, or professional, keeping your documents in order is crucial. The documents required for ITR filing typically include:

• PAN and Aadhaar card
• Bank account statements
• Form 16 (for salaried individuals)
• Interest certificates from banks and post offices
• Proof of tax-saving investments (e.g., PPF, LIC, ELSS)
• Insurance premium receipts (health and life)
• Capital gains statements from brokers
• GST returns and business invoices (if applicable)
• Donation receipts for claiming Section 80G
• Home loan interest certificates
• Details of foreign income or assets (if any)

These documents ensure that all your income sources and deductions are properly accounted for during the return filing process.

ITR FILING WITH FORM 16

ITR filing with Form 16 is especially relevant for salaried individuals who also earn business or professional income. While Form 16 provides details about salary and TDS deducted by the employer, other income sources must be reported separately.

You should use Form 16 to:

• Cross-check your pre-filled salary data
• Report TDS accurately
• Validate your gross salary and exemptions under Section 10

If you’re earning income from a business/profession alongside a salary, ITR-3 allows you to report both sources in a single return.

ITR FILING LAST DATE 2025

One of the most important aspects of filing an IT return is keeping track of the deadlines. The ITR filing last date 2025 for non-audit taxpayers is 15th September 2025, which is an extension from the usual 31st July due to delays in the release of updated forms.

Missing this deadline can result in penalties under Section 234F:

• A late fee of ₹5,000 is applicable for those with an income above ₹5 lakh.
• For income below ₹5 lakh, the late fee is ₹1,000.
• Additionally, interest under Section 234A will apply on any unpaid tax.

However, taxpayers can still file a belated return before 31st December 2025, though late fees and interest will apply.

WHEN IS FILING ITR MANDATORY?

Filing income tax returns is mandatory under several scenarios, even if your income is below the exemption limit:

• Depositing more than ₹1 crore in a current account
• Spending more than ₹2 lakh on foreign travel
• Paying electricity bills exceeding ₹1 lakh
• Business receipts above ₹60 lakh
• Professional receipts over ₹10 lakh
• TDS or TCS of ₹25,000 or more
• Holding foreign assets or signing authority abroad

Even if not mandated, voluntarily filing your return brings many advantages.

BENEFITS OF FILING ITR

Apart from fulfilling your legal obligation, filing your return on time brings several financial benefits:

• It acts as proof of income and financial stability
• It is essential to avail of home or personal loans
• Required for applying for credit cards
• Crucial for visa applications
• Necessary for high-value term insurance policies
• Needed for government contracts and tenders

In essence, even if you’re not obligated, filing an IT return enhances your financial credibility and makes future financial transactions smoother.

CONCLUSION

Understanding how to file ITR 3 online empowers individuals and professionals to stay compliant while optimizing their tax benefits. The ITR-3 form is comprehensive and accommodates various income types, from salaries to business profits and capital gains. Whether you are self-employed or part of a partnership firm, taking the time to file your return correctly can save you from future hassles, penalties, or scrutiny.

With the extended ITR filing last date 2025, now is the right time to prepare all documents and file your return confidently. Ensure all disclosures are accurate, keep your documents handy, and use the right form. If in doubt, consult a qualified tax professional to help you through the process. From form selection to e-verification, TMWala ensures your ITR is filed accurately and on time.