ITR Filing Process Online: Filling ITR form is an extensive exercise for businesses annually in order to report income and tax to the government. Your tax liability is derived on the basis of your income and if the return shows excess tax paid by you during a financial year, you are eligible for income tax refund from the tax department.
For proprietors, ITR-3 form is mandatory (for both audit and non-audit cases) while partnership firms or individuals with a total income of up to Rs 50 lakh in a year and who have opted under the presumptive taxation scheme are required to file the ITR-4 form. Importantly, a tax audit is required by a chartered accountant in case the sales, turnover or gross receipts of an enterprise is more than Rs 1 crore in a fiscal.
The ITR-3 form has primarily three parts – Part A, Schedules and Part B followed by the form’s verification. The structure of Part A and Schedules and what details are required were discussed in the first part of this article. Let’s look at Part B of the form and the information to be shared by the business owner.
Part B seeks details about total income in the first sub-part and tax liability on it in the second sub-part. To calculate total income, the first sub-part requires data on:
- Salaries
- Income from house property
- Profit and gains from speculative business/specified business/business other than speculative and specified business
- Capital gains short term and long term, their sum total, capital gains chargeable at 30 per cent under section 115BBH and total capital gains
- Income from other sources including net income from other sources chargeable to tax at normal applicable rates/special rates/income from the activity of owning and maintaining race horses and its total
- Total of salaries, income from house property, profits and gains from business or profession, capital gains and income from other sources
- Losses of current year to be set off against the total above
- Balance after set off current year losses (deducting losses from the total)
- Brought forward losses to be set off against the balance above
- Gross total income (deducting brought forward losses from the balance)
- Income chargeable to tax at special rate under section 111A, 112, 112A etc.
- Deductions under Chapter VI-A of the income tax act
- Deduction under section 10AA
- Total income (subtracting deductions under Chapter VI-A and section 10AA from gross total income)
- Income included in total income and chargeable to tax at special rates
- Net agricultural income/any other income for rate purpose
- Aggregate income (sum total of total income, Income included in total income and chargeable to tax at special rates and net agricultural income/any other income for rate purpose)
- Losses of current year to be carried forward
- Deemed income under section 115JC
The second sub-part of Part B of the ITR-3 form to compute tax liability on total income seeks details such as:
- Total tax payable on deemed total income under section 115JC
- Tax payable on total income
- Gross tax liability (sum total of tax payable after rebate, surcharge, and health & education cess)
- Gross tax payable
- Credit under section 115JD of tax paid in earlier years
- Tax payable after credit under section 115JD
- Total tax relief
- Net tax liability (deducting total tax relief from tax payable after credit under section 115JD)
- Total interest and fee payable
- Aggregate liability (sum total of net tax liability and total interest and fee payable)
- Total taxes paid including advance tax, TDS, TCS, self-assessment tax
- Amount payable
- Refund (if total taxes paid are more than aggregate liability)
- Details of all bank accounts, if so, held in India at any time during the previous year
- Tax payments (details of payments of advance tax and self-assessment tax, TDS from salary, TDS on income, and tax collected at source)
Then comes the verification part. To verify the form:
- Click on ‘Preview Return’ on the form, enter your place, name and PAN details and click on ‘Proceed to Validation’
- The page would show errors to be corrected
- Correct the errors and click on ‘Download JSON’ for the JSON file of the form
- Go to e-file>Income Tax Returns>File Income Tax Returns
- Select the assessment year, mode of filing, filing type (original return, if filing before the due date)
- Select yes if you are audited under section 44AB
- Select ITR-3 from the ITR type dropdown and click on ‘Continue’
- Attach your filled ITR form in JSON format and click on ‘Proceed to Verification’
Lastly, verify using OTP on your Aadhaar-registered mobile number or through Electronic Verification Code (EVC) and click on ‘Continue’ to conclude the verification process.