ITR-3 Filing
Business and professional income, with books.
ITR-3 is the return for an individual or HUF carrying on a business or profession — a consultant, a doctor, a trader, or a partner drawing remuneration from a firm. It carries the full balance sheet and profit and loss schedules.
Traders in derivatives file here, and it is where futures and options turnover is computed for the audit threshold — a calculation that is frequently done wrong and that determines whether a tax audit is required at all.
Where presumptive taxation under 44AD or 44ADA is available and better, we will say so — ITR-4 is a much shorter return and avoids maintaining detailed books.
What is included
- Books finalised with depreciation under the Act
- Business and professional income computed
- F&O turnover and audit applicability assessed
- Filed and e-verified
What we need from you
- Books of account or accounting software access
- Bank statements for the full year
- Broker profit and loss statement for F&O
- Fixed asset register and purchase invoices
Questions
How is F&O turnover calculated for tax audit?
For futures and options, turnover is the absolute total of favourable and unfavourable differences, plus premium received on options sold. It is not the contract value, which is why traders often wrongly believe they have crossed the audit threshold.
Also in Income tax
Talk to us
Get started with ITR-3 Filing
Tell us a little about the business and a chartered accountant will call you back. You will get a firm quote before any work begins.
- A qualified accountant on the call, not a call centre
- A firm quote before any work begins
- Your details are never sold or shared