09 July 2024
In India, if you are an individual or Hindu Undivided Family (HUF) and your income includes income from business or profession, you are required to file ITR-3. There is no specific minimum income threshold for filing ITR-3. Whether you need to file ITR-3 depends on the nature and sources of your income, rather than the amount.
Here are some key points regarding the filing of ITR-3:
1. **Income Types**: ITR-3 is applicable if you have income from business or profession, including income from trading, speculative business, commission income, or any other profession.
2. **No Minimum Income**: Unlike other forms where there might be a minimum income threshold (like ITR-1 for salaried individuals), there is no minimum income limit specified for filing ITR-3. If you have income from business or profession, you need to file ITR-3 regardless of the amount.
3. **Income Threshold**: However, for individuals who have income below the taxable limit (after deductions and exemptions), filing of ITR may not be mandatory. For the assessment year 2023-24 (financial year 2022-23), the basic exemption limit for individuals below 60 years of age is Rs. 2.5 lakh.
4. **Mandatory Filing**: Even if your income is below the taxable limit, it may be beneficial to voluntarily file ITR-3 if you want to carry forward losses, claim refunds, or for other compliance reasons.
To determine your specific filing requirements and to ensure compliance with income tax laws, it's advisable to consult with a qualified tax professional or chartered accountant who can assess your individual situation based on your income sources and transactions. They can provide guidance on whether you need to file ITR-3 and assist you in preparing and filing your income tax return accurately.
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