Sole Proprietors
Running a proprietorship with regular books and not opting for Section 44AD presumptive scheme.
ITR-3 RETURN FILING
Itr3 Retun Filing Registration
Professional ITR-3 filing for proprietors, freelancers, doctors, lawyers and self-employed professionals who maintain regular books and do not opt for presumptive taxation. P&L and Balance Sheet support, Schedule BP, depreciation, 26AS/AIS reconciliation and tax audit coordination.
DedicatedExpert Assistance
P&L + Balance SheetRequired
Section 44ABAudit Coordination
PROPRIETORS · PROFESSIONALS · FREELANCERS
Get Expert Consultation
Fill out the form to consult our specialists for ITR-3 filing assistance.
Thanks! Your consultation request has been received. Our expert will contact you shortly.
SAMPLE
Tax Filing / TAN Certificate
Income Tax Department — sample acknowledgement / certificate
Illustrative sample. Your official certificate is issued after approval.
01
Business / Profession
For individuals & HUFs with income from business or profession (not presumptive)
02
Full Books
P&L and Balance Sheet mandatory — actual profit, not presumptive %
03
All Heads
Salary, house property, business, capital gains and other sources in one return
04
Tax Audit
Section 44AB may apply when turnover/receipts cross thresholds — we coordinate
OVERVIEW
What is ITR-3?
ITR-3 is the income tax return form for individuals and HUFs who earn income from a business or profession and maintain regular books of account. It is used when the taxpayer has not opted for presumptive taxation under Sections 44AD, 44ADA or 44AE.
Unlike ITR-4 (Sugam), ITR-3 requires a Profit & Loss account and Balance Sheet. It covers all five heads of income — salary, house property, business/profession, capital gains and other sources. Sole proprietors, freelancers, doctors, lawyers and other professionals who claim actual expenses file ITR-3. If turnover or receipts exceed Section 44AB limits, a tax audit is mandatory before filing.
Form
ITR-3
Applicable To
Individuals & HUFs with business/profession income
Books Required
Yes (P&L + Balance Sheet)
Presumptive
Not used (use ITR-4 if opting)
WHO SHOULD FILE
Typical Profiles
Self-Employed Professionals
Doctors, lawyers, architects, consultants and other professionals reporting detailed income and expenses.
Freelancers
Independent contractors who do not opt for 44ADA or whose receipts require full books.
Salary + Side Business
Employees who also run a business or earn professional income alongside salary.
Partners (Other Income)
Partners in a firm who have separate business/professional income beyond share from the firm.
Not Opting for Presumptive
Anyone choosing actual profit and expense claims instead of 44AD/44ADA/44AE percentages.
ITR-3 VS ITR-4
Regular vs Presumptive
| Aspect | ITR-3 (Regular) | ITR-4 (Presumptive) |
|---|---|---|
| Taxation basis | Actual profit from books | Prescribed % of turnover/receipts |
| Books of account | Required (Section 44AA) | Not required |
| Financial statements | P&L and Balance Sheet mandatory | Not required |
| Expense deductions | Actual expenses (Ss 30–37) | No separate expense claims |
| Tax audit | May apply under Section 44AB | Generally not if profit ≥ prescribed % |
DOCUMENTS
What You Need
1. Profit & Loss Account
Complete P&L for the financial year with all income and expense heads.
2. Balance Sheet
Assets, liabilities and capital as on year-end — mandatory with ITR-3.
3. Books & Ledgers
Sales, purchases, expenses, bank statements and supporting vouchers.
4. Depreciation Chart
Fixed asset register and depreciation computation as per the Act.
5. Form 26AS & AIS
Tax credit and Annual Information Statement for reconciliation.
6. Audit Report (if any)
Form 3CA/3CB + 3CD when Section 44AB tax audit is applicable.
PROCESS
How We File Your ITR-3
1. Books Review
Review P&L, Balance Sheet and supporting ledgers for completeness and consistency.
2. Schedule BP & Depreciation
Business income computed; depreciation and expense optimisation reviewed under the Act.
3. Reconciliation
Form 26AS and AIS matched so TDS and reported income align.
4. Audit Coordination (if needed)
If Section 44AB applies, coordinate with the appointed auditor for 3CA/3CB + 3CD.
5. e-File & e-Verify
Return prepared and filed; e-verification support and advance tax guidance as needed.
TAX AUDIT
Section 44AB & ITR-3
When Audit Applies
When turnover/receipts exceed prescribed limits under Section 44AB (e.g. business turnover thresholds, including the higher limit for low cash intensity).
Forms 3CA/3CB + 3CD
Audit report and statement of particulars must be filed before or with the ITR for audit cases.
Due Date Impact
Audit cases typically have a later ITR due date (e.g. 31 October). Confirm current year dates on the portal.
Our Role
We coordinate preparation and filing of the ITR; the audit opinion is issued by an independently appointed professional.
WHY CHOOSE US
Why Corporate Mart for ITR-3?
Books to Return
P&L and Balance Sheet reviewed so Schedule BP and other schedules reflect your actual business correctly.
Depreciation & Expenses
Depreciation chart and expense claims reviewed under the Act so deductions are supportable.
Audit Coordination
When Section 44AB applies, we work with your appointed auditor so the report and ITR stay aligned.
26AS / AIS Recon
Full reconciliation to reduce mismatch notices and keep the return notice-safe.
Books → BP & Dep → Recon → Audit (if any) → e-File → e-Verify
FAQ
Frequently Asked Questions
Individuals and HUFs with income from business or profession who maintain regular books and do not opt for presumptive taxation under 44AD/44ADA/44AE — sole proprietors, freelancers, professionals and those with salary plus business income.
ITR-3 is based on actual profit from books (P&L and Balance Sheet required). ITR-4 is for presumptive taxation (fixed % of turnover/receipts, no books required). Choose ITR-3 when you claim actual expenses or do not qualify for / do not opt for presumptive.
Only if your turnover or receipts exceed the Section 44AB thresholds. Below those limits, ITR-3 can be filed without a tax audit. We help determine applicability and coordinate if audit is required.
Profit & Loss account, Balance Sheet, books and ledgers, depreciation chart, Form 26AS and AIS, and Form 3CA/3CB + 3CD if tax audit applies. Salary Form 16 and other income docs if applicable.
Typically 31 July for non-audit cases and a later date (e.g. 31 October) for audit cases. Confirm the current assessment year dates on the Income Tax portal.
Yes, if they have business or professional income of their own in addition to salary, interest or share of profit from the firm. Share of profit from a firm is generally exempt; other income is reported in ITR-3.
If you declare profit below the prescribed percentage under 44AD/44ADA, you may be required to maintain books and get a tax audit for subsequent years. We advise on the implications before you switch.
No. Companies use ITR-6; LLPs and partnership firms use ITR-5. ITR-3 is only for individuals and HUFs.
