Income Tax Return (ITR-3) now available for filing on income tax portal as the due of filing Income Tax Return for the individual who are not liable for tax audit is 31st July 2018 CBDT has release ITR-3 utility for return filing .

ITR-3 is applicable for individuals and HUFs having income from profits and gains of business or profession.

Major Changes in ITR-3 for AY 2018-19

1. In the general information tab an option to select section 115H (who is a non-resident Indian in any previous year, becomes assessable as resident in India in respect of the total income of any subsequent year) has been added

  1. Revised Depreciation Schedule

The CBDT vide Income-Tax (Twenty Ninth Amendment) Rules, 2016, dated 07-11-2016 had restricted the highest rate of depreciation for any block of asset to 40%. In other words, all block of assets which were eligible for depreciation at the rate of 50%, 60%, 80% or 100% would be eligible for depreciation at the rate of 40%.

The new ITR Forms have replaced the depreciation column of 50/60/80/100 percent with 40% in case of plant & machinery and Building. New columns have also been inserted to enable the entities to claim proportionate depreciation in the event of business reorganisation, i.e., demerger, amalgamation, etc.

Further, a field is added to disclose the disallowance to be made in respect of depreciation under section 38(2) if an asset is not exclusively used for business purpose.

  1. Impact on profit or loss due to ICDS deviation

In last preceding years ICDS, there is only impact of ICDS was need to disclosed.

The new ITR Forms require separate reporting of both profit and loss (and not on net basis) in Schedule OI, Schedule BP (Computation of income from business or profession) and Schedule ICDS.

  1. Detail of GST

After enactment of GST Act, the new ITR forms have introduced new columns to report CGST, SGST, IGST and UTGST paid by, or refunded to, assessee during the Financial Year.

  1. Partners of partnership firms as against ITR 2 will have to file their returns in ITR 3
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