ITR stands for Income Tax Return.It is a prescribed form through which the particulars of income earned by a person in a financial year and taxes paid on such income are communicated to the Income-tax Department. It also allows carry -forward of loss and claim refund from income tax department.Different forms of returns of income are prescribed for filing of returns for different Status and Nature of income. These forms can be downloaded from www.incometaxindia.gov.in
It is applicable to an individual or a Hindu Undivided Family who has any income chargeable to tax under the head business or profession
Form ITR – 3 can be used by an individual or a Hindu Undivided Family who is having income from profits and gains of business or profession.ITR – 3 is also required to be filed by a person whose income is chargeable to tax under the head “Profits and gains ofbusiness or profession” is in the nature of interest, salary, bonus, commission or remuneration, by whatever name called, due to, or received by him from a partnership firm.