Income Tax Return (ITR) filing: You can now file ITR form 3 - What you should know

The Income Tax Department now allows taxpayers to file their Income Tax Return (ITR) form 3 for the assessment year 2019-20. Notably, now ITR forms 1, 2, 3 and 4 are available taxpayers to file. The department will make other forms available shortly. The ITR3 form is applicable to an individual or a Hindu Undivided Family who has any income chargeable to tax under the head business or profession. It is very important that you file your returns, as it will help validate your credit worthiness before financial institutions and make it possible for your to access various benefits such as travelling abroad or applying for loans, etc. Filing of ITR can be done both offline and online. 

The ITR3 form must be filed by an individual or HUF who is having income from profits and gains arising from their business or profession. It also needs to be noted that, this form is required to be filed by a person whose income is chargeable to tax under the nature of interest, salary, bonus, commission or remuneration by whatever name called due to or received by him from a partnership firm. 

However, those who do not have income from business or profession are not liable to file ITR3 form. 

The department has provided free e-filing utility (i.e., Java & excel) to generate e-return and furnishing of return electronically.

If one fails to file their ITR before due date, they fall under section 234F which is furnishes details of penalties for defaulting. 

If you have not furnished your ITR return by end of December of the assessment year, then you will be liable to pay penalty of Rs 5,000. If delayed further, the penalty can move upto Rs 10,000. This is applicable to individuals whose income is above Rs 5 lakh annualy. If lessor than Rs 5 lakh income, then penalty of Rs 1,000 is levied. 

Here's how you can file ITR online.

Step 1 - Login to e-Filing website with User ID, Password, Date of Birth /Date of Incorporation and Captcha.

Step 2 - Go to e-File and click on "Prepare and Submit ITR Online".

Step 3 - Select the Income Tax Return Form ITR 1/ITR 4S and the Assessment Year.

Step 4 - Fill in the details and click the "Submit" button.

Step 5 - Upload Digital Signature Certificate (DSC), if applicable.

Step 6 - Click on "Submit" button.