Who will use ITR-3-for A.Y. 2021-2022?
This Return Form is to be used by an individual or a Hindu Undivided Family who is having income under the head ―’profits or gains of business or profession’ and who is not eligible to file Form ITR-1 (Sahaj), ITR-2 or ITR-4 (Sugam). Thus income from a Proprietorship Firm.
Thus Individuals & HUFs with following Income can file ITR-3
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Income from carrying on a Profession
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Income from Proprietary Business
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Return may also include income from House property, Salary/Pension and Income from other sources
Who is not eligible to use ITR-3 Form
If an Individual/HUF is having income as a partner of a partnership firm that is carrying out business/profession, he cannot file ITR-3. In such cases, he is required to file ITR 2. It cannot be filed by a Company or LLP or other types of legal entity.
Income Tax Rates for Individuals & HUF (AY 2021-22)
Income
|
Upto 60 years of age
|
Upto Rs 2.5 Lakhs
|
Nil
|
Rs 2.5 Lakhs – Rs 5 Lakhs
|
5%
|
Rs 5 Lakhs – Rs 10 Lakhs
|
20%
|
Above Rs 10 Lakhs
|
30%
|
Note: A resident individual having taxable income upto Rs 5,00,000 will get a tax rebate of Rs.12,500 or the amount of tax payable (whichever is lower)
Income
|
Between 60-80 years of age
|
Upto Rs 3.0 Lakhs
|
Nil
|
Rs 3.0 Lakhs – Rs 5 Lakhs
|
5%
|
Rs 5 Lakhs – Rs 10 Lakhs
|
20%
|
Above Rs 10 Lakhs
|
30%
|
Note: A resident individual having taxable income upto Rs 5,00,000 will get a tax rebate of Rs.12,500 or the amount of tax payable (whichever is lower)
Income
|
Above 80 years of age
|
Upto Rs 5 Lakhs
|
Nil
|
Rs 5 Lakhs – Rs 10 Lakhs
|
20%
|
Above Rs 10 Lakhs
|
30%
|
New Tax regime from AY 2021-22
An option to pay lower tax shall be available only if the Income is calculated without claiming the following exemptions and deductions:
Exemption & Deduction not allowed
|
Exemption & Deduction allowed
|
Leave Travel Allowance (LTA)
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Transport Allowance in case of specially-abled person
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House rent Allowance (HRA)
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Conveyance Allowance to meet the conveyance expenditure incurred as part of employment
|
Conveyance Allowance
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Any compensation received to meet the cost of travel on tour or transfer
|
Children Education Allowance
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Deduction under 80CCD(2)
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Standard Deduction on Salary
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Deduction under section 80JJAA
|
Professional Tax
|
|
Interest on Housing Loan
|
|
Deduction under chapter VIA –
80C – Insurance premium etc
80D – Medical Insurance
80E – Education Loan
|
|
Special Rate under New Tax regime for Individuals & HUF (AY 2021-22)
Income
|
Rate of Tax
|
Upto Rs 2.5 Lakhs
|
Nil
|
Rs 2.5 Lakhs – Rs 5 Lakhs
|
5%
|
Rs 5 Lakhs – Rs 7.5 Lakhs
|
10%
|
Rs 7.5 Lakhs – Rs 10 Lakhs
|
15%
|
Rs 10 Lakhs – Rs 12.5 Lakhs
|
20%
|
Rs 12.5 Lakhs – Rs 15 Lakhs
|
25%
|
Above Rs 15 Lakhs
|
30%
|
Surcharge: In case total income exceeds specified limits, surcharge is levied at the following rates:
Income
|
Surcharge Rate
|
Rs 50 Lakhs – Rs 1Crore
|
10%
|
Rs 1 crore – Rs 2 Crores
|
15%
|
Rs 2 crores – Rs 5 Crores
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25%
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Above Rs 5 Crores
|
37%
|
Health and Education Cess: The amount of income-tax and the applicable surcharge, shall be further increased by health and education cess calculated at the rate of 4% of such income-tax and surcharge