ITR Form-3

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Income Tax Return(ITR) Form-3

Individuals and Hindu Undivided Families who are enrolled as partners in a firm must fill out the ITR Form-3 . This form does not applicable to people who are sole proprietors of a business, according to Rule 12 of the Income Tax Rules, 1962. It is mostly for business purposes, including partnership agreements. Professionals can use it as well, but it must be done in collaboration.

ITR Form has total 7 types which is known as follows.

ITR Form -1 ,  ITR Form -2 , ITR Form -3 , ITR Form -4 ,ITR Form -5 , ITR Form -6 , ITR Form -7.

Who are eligible to fill out the ITR-3 Form

A collection of rules and conditions control the eligibility criteria for each Income Tax Return form. Individuals and Hindu Undivided Families who fall into one of the following groups are eligible to use the ITR-3 Form.

Is it possible for a partner in a firm to earn money from ‘profits or earnings of business or profession'?
As a partner, gains income from interest, pay, bonus, commission, and remuneration.
If a partner of a firm only receives income from the firm as a share of the profits and not from any other source such as interest, bonus, salary, pay, or commission
Such an Individual or Hindu Undivided Family should submit Income Tax Returns using the ITR-3 Form rather than the ITR-2 Form.

Who are ineligible for the ITR-3 Form

Individuals and Hindu Undivided Families who have earned income through a business or profession operated as a proprietorship firm are not qualified to fill out the ITR-3 Form.
Assesses who, in addition to being a partner in a firm, also have sources of income from a business or profession, such as the stock market, are not entitled to file their income tax returns using this form.

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