Basically, ITR-3 Form is filled by the taxpayers who are a part of Partnership firms and they are earning salary/ remuneration profits and interest from the partnership firm.
Who can file ITR-3 Form?
Following Individuals/HUFs are eligible to file an ITR-3 form-
- Any Individual/HUF is partner in a partnership firm,
- Individual/HUF is having income from a partnership firm such as remuneration/ salary, interest on capital, share of profits etc.
- Taxpayer’s income from salary.
- Assessee's income from house property.
- Taxpayer’s income from capital gains.
- Assessee's income from other sources.
Remuneration and interest received by a partner from a firm are taxable as Business income. Moreover, the share of profits from the firm is not taxable in the hands of the partner.
Therefore, if the partner is receiving only exempt income, that is the share of profits from the firm, then, in that case, he/she is supposed to file ITR-3.
Who cannot File ITR-3 Form?
If an Individual/HUF is having income from his/her own business/profession, then, in that case, he/she cannot file ITR-3.
In such case, he/she will have to file ITR-4 Form.
ITR-3 Form is divided into various parts and schedules, here they are: -
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