Kotak Life

Buy a Life Insurance Plan in a few clicks


Now you can buy life insurance plan online.

Kotak e-Term Plan

Kotak e-Term Plan provides a high level of protection to your loved ones in your absence. Know more

Kotak Guaranteed Savings Plan

Kotak Guaranteed Savings Plan is a savings and protection plan that helps you achieve long-term financial goals and provides an insurance cover against any eventuality. Know more

Kotak E-Invest

Kotak e-Invest plan is a complete Unit-Linked Insurance Plan that can be customized as per your goals and needs. Know more

Kotak Health Shield

Kotak Health Shield Plan helps secure your finances in sudden medical expenses such as Cardiac, Liver, Neuro, and Cancer (all early and significant illness stages/conditions of cancer), along with offering protection for personal accidents - in case of accidental death or disability. Know more

Kotak Lifetime Income Plan

Kotak Lifetime Income Plan gives you the security of your income continuing throughout your life and in your absence throughout your spouse's lifetime! Know more

A Complete Guide for Filing ITR 3 Form

A Complete Guide for Filing ITR 3 Form
  • 29th Mar 2021 |
  • 3,855

Filing an income tax return can be a complex process. Although taxpayers can now file their tax return online, there still remain certain common errors that most people end up making. Any mistake while filing the form can lead to issues later. Hence, your income, tax deductions, personal details like Pan card number, etc. must be correctly filled and submitted in time to the Income Tax Department. Another important aspect to keep in mind is selecting the right ITR form. There is a unique ITR form for every category of taxpayers. One of these is the ITR 3 form.

This article talks about the ITR 3 form, taxpayers who can use it, and how it should be filled.

What is the ITR 3 form?

Individual tax payers and Hindu Undivided Families (HUFs) can use an ITR 3 form to file their income tax return if they have earned their annual income from profits and gains from a business or profession. In broad terms this includes the following taxpayers:

  • Individuals who have earned their income from a business or profession.
  • Individuals who have earned their income from salary or pension, a property such as a house, and other sources.

Who can use the ITR form 3 for filing their income tax return?

Here are the eligibility criteria to use the ITR form 3 to file an income tax return:

  • The taxpayer is the director of a company or business.
  • The taxpayer’s residential status is either resident or non-resident of India.
  • The taxpayer is drawing an income from a pension.
  • The taxpayer is earning an income from house property.
  • The taxpayer has investments in unlisted equity shares.
  • The tax payer’s income is chargeable to tax under ‘profits and gains of business or profession.’ This includes salary, interest, commission, bonus, or remuneration.

Taxpayers can also use the ITR form 3 if their total income includes:

  • Income from single house property or multiple house properties.
  • Income from a lottery, betting on races, and other forms of gambling that are legal as per the Indian law.
  • Income from short term or long-term capital gains.
  • Income earned from a business or profession that practices under a proprietorship firm owned by the individual or a HUF.
  • Income earned from foreign assets.

    What are the restrictions to using an ITR form 3 for filing an income tax return?

  • Income earned from foreign assets.

The following taxpayers are not considered eligible to file an income tax return with an ITR 3 form:

  • An individual or HUF earning their income from a partnership or as partners from a business or profession. The right income tax return form, in this case, is the ITR 2 form.
Save Tax Now

What is the structure of the ITR 3 form?

ITR-3 is divided into parts, schedules, and verification. Here are the details of each:

1. Part A

  • Part A-GEN: General information and Nature of Business
  • Part A-BS: Balance Sheet as of March 31, 2020, of the Proprietary Business or Profession
  • Part A- Manufacturing Account: Manufacturing Account for the financial year 2019-20
  • Part A- Trading Account: Trading Account for the financial year 2019-20
  • Part A-P&L: Profit and Loss for the financial year 2019-20
  • Part A-OI: Other Information (this is optional if not liable for audit under Section 44AB)
  • Part A-QD: Quantitative Details (this is optional if not liable for audit under Section 44AB)

2. Schedules

  • Schedule-S: Computation of income under the head Salaries.
  • Schedule-HP: Computation of income under the head Income from House Property
  • Schedule BP: Computation of income from business or profession
  • Schedule-DPM: Computation of depreciation on plant and machinery under the Income Tax Act of 1961
  • Schedule DOA: Computation of depreciation on other assets under the Income Tax Act of 1961
  • Schedule DEP: Summary of depreciation on all the assets under the Income Tax Act of 1961
  • Schedule DCG: Computation of deemed capital gains on the sale of depreciable assets
  • Schedule ESR: Deduction under Section 35 (expenditure on scientific research)
  • Schedule-CG: Computation of income under the head Capital gains.
  • Schedule 112A: Details of Capital Gains where Section 112A is applicable
  • chedule 115AD(1)(iii)Provision: For non-residents details of Capital Gains where Section 112A is applicable
  • Schedule-OS: Computation of income under the head Income From Other Sources
  • Schedule-CYLA-BFLA: Statement of income after set off of current year’s losses and statement of income after set off of unabsorbed loss brought forward from earlier years
  • Schedule-CYLA: Statement of income after set off of current year’s losses
  • Schedule BFLA: Statement of income after set off of unabsorbed loss brought forward from earlier years
  • Schedule CFL: Statement of losses to be carried forward to future years
  • Schedule- UD: Statement of unabsorbed depreciation
  • Schedule ICDS: Effect of Income Computation Disclosure Standards on Profit
  • Schedule- 10AA: Computation of deduction under Section 10AA
  • Schedule 80G: Statement of donations entitled for deduction under Section 80G
  • Schedule RA: Statement of donations to research associations etc. entitled for deduction under Section 35(1)(ii) or 35(1)(iia) or 35(1)(iii) or 35(2AA)
  • Schedule- 80IA: Computation of deduction under Section 80IA
  • Schedule- 80IB: Computation of deduction under Section 80IB
  • Schedule- 80IC/ 80-IE: Computation of deduction under Section 80IC/ 80-IE
  • Schedule VIA: Statement of deductions (from total income) under Chapter VIA
  • Schedule SPI-SI-IF: Income of specified persons (spouse, minors etc.) includible in the income of the assessee, income chargeable at special rates, info partnership firms in which assessee is a partner
  • Schedule AMT: Computation of Alternate Minimum Tax Payable under Section 115JC
  • Schedule AMTC: Computation of tax credit under Section 115JD
  • Schedule SPI: Statement of income arising to spouse/ minor child/ son’s wife or any other person or association of persons to be included in the income of the assessee in Schedules-HP, BP, CG and OS
  • Schedule SI: Statement of income which is chargeable to tax at special rates
  • Schedule-IF: Information regarding partnership firms in which assessee is a partner
  • Schedule EI: Statement of income not included in total income (exempt incomes)
  • Schedule PTI: Pass through income details from business trust or investment fund as per Section 115UA, 115UB
  • Schedule TPSA: Secondary adjustment to transfer price as per Section 92CE(2A)
  • Schedule FSI: Details of income from outside India and tax relief
  • Schedule TR: Statement of tax relief claimed under Section 90 or Section 90A or Section 91
  • Schedule FA: Statement of Foreign Assets and income from any source outside India
  • Schedule 5A: Information regarding apportionment of income between spouses governed by Portuguese Civil Code
  • Schedule AL: Asset and Liability at the end of the year (applicable where the total income exceeds ₹50 lakhs)
  • Schedule DI: Schedule of tax-saving investments or deposits or payments to claim deduction or exemption in the extended period from 1 April, 2020, until 30 June 2020
  • Schedule GST: Information regarding turnover/ gross receipt reported for GST

3. Part B

  • Part B-TI: Computation of Total Income.
  • Part B-TTI: Computation of tax liability on total income

4. Verification

How to file an income tax return using an ITR 3 form?

Taxpayers can use the same order to fill the ITR 3 form as mentioned above. This is:

1. Start with Part A and enter the general information

2. Proceed to the Schedules

3. Fill Part B TI and Part B TTI

4. Complete the verification

Taxpayers can use ITR 3 form to file their income tax return in both methods – online and offline.

  • If you choose the online method, you can submit the return online with a digital signature. The acknowledgement of receipt will then be sent to your registered email address.
  • The offline method is available to taxpayers aged 80 or more. Moreover, the total income should be lower than ₹5 lakhs. You can submit the ITR 3 form on paper by downloading it from the income tax website and mailing it to the CPC office in the Income Tax Department, Bangalore.

What are the changes made to the ITR 3 form for 2020-21?

  • Taxpayers need to disclose cash deposits above ₹1 crore in a current account. Tax payers also need to disclose expenditure incurred above ₹2 lakhs on foreign travel and expenditure incurred above ₹1 lakh on electricity.
  • Taxpayers who are the director of a company or hold unlisted equity shares need to disclose the ‘type of company’.
  • Tax payers have to provide the buyer’s name, Pan card, and Aadhaar card, if the income has been earned from short-term or long-term capital gains from the sale of land or a building.
  • Taxpayers should provide details of ‘any other income’ under ‘income from other sources’.
  • Taxpayers should provide deductions against ‘income from other sources’.
  • Taxpayers should provide details of ‘capital gains’ and ‘dividend’ in the case of a business trust or investment fund.


Make sure to use the right form for filing an income tax return to avoid hassles later. Moreover, when it comes to saving money, tax savings strategies can help reduce taxes. Kotak Life offers atax and savings guide that can help individuals build long term savings and lower taxes in different ways.

Kotak e-Term Plan


  • Nominal Cost
  • Multiple Plan Options
  • Flexible Payout Options
  • Critical Illness Rider
  • Tax Savings
  • Long term Coverage

Ref. No. KLI/22-23/E-BB/492


Browse our library of resources

- A Consumer Education Initiative series by Kotak Life

Similar Articles

4 Things To Expect From Your Term Insurance Plan in India

Can A Housewife Buy a Term Insurance Plan - All You Need to Know

Are The Add-ons and Optional Features of Term Insurance Plans Actually Beneficial?

Term Insurance With Riders In India

Can You Increase Your Term Insurance Cover?

Do I Need to Give a Medical Test for Term Insurance in India?

Is Life Insurance Investment Worthy Enough

Buying A Term Insurance Plan? Take These Factors into Account

Online vs Offline Term Insurance: Which Is The Better Option To Buy

How Much Cover Should I Take In A Term Plan?

5 Benefits of Early Retirement Planning

Should You Have Multiple Term Life Insurance Policies?

What Are the Best Term Insurance Plans for Planning Retirement?

Why Should You Buy Term Insurance in 2022?

Tax Benefits of Term Insurance in India

What is a Joint Term Insurance Plan? Key Benefits of Joint Term Plan

9 Ways to Help Family Members in Financial Trouble

Insuring Against Disability With Disability Insurance Rider

How to Ensure That Your Term Insurance Claims Are Never Rejected?

What are the Documents Required for Term Insurance Plan?

What Types of Deaths Are Covered in a Term Insurance Plan?

Term Plan with Spouse Cover

Make Your Online Term Plan Your Familys Monthly Payout

6 Types of Death not covered in Term Insurance Plan

Is ₹1 Crore Term Insurance Good Enough Cover?

Term Life Insurance Plan for Smokers vs Non-Smokers

Is There Any Tax Benefit on Term Insurance?

Does Your Term Insurance Plan Cover Death Due to COVID-19?

Why Should You Not Take A Term Plan Without Medical Test in India?

Steps on How to Buy Term Insurance Online

Can I Make Changes to My Term Insurance Policy Post Purchase?

How to Identify Term Insurance According to Your Needs?

Do You Need Term Insurance Cover After Retirement?

Everything About Claim Settlement Ratio for Term Insurance

Ideal Features of a Suitable Term Plan - Act Now for a Stress-free Future

All you need to Know about Term Insurance Plans for Housewives

Different Types of Protection Plans

4 Methods to Calculate How Much Term Insurance You Need

Difference between Term Insurance and Life Insurance

Why Buy Term Insurance Even at Rising Rates?

Why Buying a Term Plan Is Smarter Than Traditional Life Insurance Products

How To Choose the Right Sum Assured Under a Term Plan?

Ensure Protection Against Death, Disease & Disability With Life Insurance

6 Reasons That Make Term Insurance a Must Buy

Tips to Choose the Right Term Period for Term Insurance Plan

Is a Term Insurance Policy Portable?

Cost of Term Insurance Likely to Increase Soon

Can Term Insurance Plans Be Purchased As A Gift?

Which Death Type Does Your Term Plan Not Cover?

Can I Get Term Insurance on Behalf of My Spouse?

Why should single women purchase term life insurance?

How Much Term Life Insurance Cover Do I Need in India?

Should Youngsters, Working Couples Buy Term Insurance Plans?

5 Things To Consider While Buying Term Insurance Plan

Term Insurance – Why You Must Include In Your Financial Planning?

Understanding Term Insurance Riders

All About Term Insurance Inbuilt Coverage

Why does every working woman need life insurance?

Why Should New Parents Buy Term Life Insurance?

Top 3 Reasons Why You Should Buy A Term Plan Now

Can I Buy Term Insurance for a COVID-19 Patient?

Term Insurance Calculator - Everythng You Need To Know

What Is a Passive Income? Why Should You Use It to Buy a Term Plan?

Importance of Term Insurance at Every Stage of Your Life

How to Compare Term Insurance Online

Choosing Riders for Insurance Plans

Planning For Son or Daughter's Wedding

Protection for your family

Why Buy Term Insurance Plan With a High Cover?

Term Insurance: What Happens When You Don’t Pay Your Premiums?

टर्म इंश्योरेंस क्या है? टर्म इंश्योरेंस का मतलब

Term Insurance Age Limit – Term Plan for All Age Groups

Can I Extend the Tenure of My Term Insurance Plan?

How Not To Get Your Term Insurance Claim Rejected

10-Year Term Life Insurance Policy - Explained in Detail

Is Group Term Life Insurance Provided By Employer Sufficient?

Is it a Good Time to Buy Term Insurance During the COVID-19 Pandemic?

Term Insurance Basics You Should Know

Insurance Policy for Housewife In India

Term Plans are Definitely Cheaper than You Think!

How Much Term Insurance Do I Need

How Does Term Life Insurance Work? Learn the Benefits

Eligibility Criteria for Buying Term Insurance in India

Key Differences Between Term Insurance, ULIPs, And Health Insurance

Insuring Against Accidents with an Accidental Death Insurance Rider

5 Reasons to Buy Term Insurance When You are in Your 30s

Comparing Term Plans – What Should You Look Out For

Term Vs. Whole Life Insurance: Which One You Should Buy in India?

Term Insurance with Critical Illness

How Does A Term Life Insurance Work in India?

4 Reasons Why You Need Critical Illness Cover

Why Premium Amount for Term Insurance is So Low?

Increasing Term Insurance and Riders

What is Form 16, Form 16 part A, Form 16 part B, Information Required and FAQs

5 Term Insurance Benefits for Single Women

What is Critical Illness Policy

What Happens to Term Insurance Plan With No Beneficiary - Kotak Life

Why Married People Should Buy Term Insurance Under MWP Act?

What Happens if you Hide Facts in your Term Insurance?

What is Term Insurance - A Complete Guide

Why Term Insurance Is Important in times of COVID-19?

Insuring Protection Against Death With Death Insurance Rider

What is the Right Term Period For Term Insurance Policy? Here's How You Should Choose!

What Should Be The Duration Of Your Term Plan in India?

8 Factors to consider before choosing a Critical Illness Insurance

Advantages & Disadvantages of Term Insurance in India

How to Buy 1 Crore Life Insurance Policy Without Medical Test

Do Beneficiaries Pay Taxes on Term Insurance?

How To Calculate The Amount Of Term Life Insurance You Need?

When is the Right Time to Buy Term Life Insurance Policy for Yourself?

Why Should You Add a Rider to a Term Insurance Plan?

Is Term Life Insurance Plan an Investment or Expense?

Busting Myths and Facts About Term Insurance Policies

8 Things To Do After Buying Term Insurance

Insuring yourself against Ill Health with a Critical Illness Rider

Make Your Online Term Plan Your Family's Monthly Pay Cheque

Planning For Children's Future

Term Insurance Plans and Policies for Smokers

Term Insurance: Most Common Term Insurance Myths Explained | Kotak Life

Advantages of Buying Term Insurance in Your 50s

How To Change The Nominee in Term Insurance?

Is term Insurance Needed for People With No Dependents?

Is It Good To Buy A Term Insurance Plan In 2022?

Gift Your Father A Term Insurance Plan This Father's Day

Why is it important to buy term insurance plan?

What Is the Correct Age to Buy Term Insurance?

Can Non-Resident Indians (NRIs) Buy Term Insurance In India?

What All Documents Required For Term Insurance In India?

Term Insurance: Smokers vs Non-Smokers

What is Insurance Premium - A Detailed Guide

Why Term Plan Should Be The First Step To Securing Your Future?

Individual Life Insurance vs. Group Term Life Insurance

What are incremental term insurance plans?

Endowment Plans vs Term Plans: Understanding the difference

Does Term Insurance Cover Accidental Death?

While Buying Term Insurance Compare Features, Not Just Premiums

Why Term Insurance Is Better Than ULIP?

How to Surrender Term Life Insurance When you have No Liabilities

8 Benefits of Term Insurance You Should Know

Should You Buy a Term Plan After 40?

Calculating Term Insurance Premium

Can Senior Citizens Avail Term Insurance?

Why Surrendering Your Term Plan Policy In The Final Phase Maybe A Bad Idea?

Buying A Term Insurance? Don't Ignore the Claims Settlement Ratio

What Are Insurance Riders and How to Choose Them in a Term Plan?

What Is a Renewable Term Insurance Policy?

Why 1 Cr Term Plan Is Necessary For Family?

What is a short term insurance policy?

9 Most Frequently Asked Questions on Term Insurance

Which Term Insurance to Choose: Lump Sum or Staggered Pay-out Plan?

Key IRDAI Regulations That Changed Face Of Term Insurance Industry In 2020

Reasons You Need Term Insurance Plan as a Self-Employed Person

Know How to Invest at Every Age for Larger Returns

What Should You opt for - Limited or Premium Pay?

Different Types of Premium in Term Insurance

Best Investment Plans for Children - Secure Your Child's Future

How To Choose the Right Term Insurance Plan?