Balance sheet for ITR-3

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A user is seeking guidance on how to prepare a balance sheet for their wife's affiliate marketing side hustle, which falls under Income from Business and Profession for ITR-3 filing. Since the business is run personally with all transactions in a savings account, and there are no fixed assets, investments, or liabilities, the user asks if showing the savings account balance as both assets and capital is acceptable. The user also inquires about the appropriate nature of business code for affiliate marketing.

Ashish Agarwal

Ashish Agarwal (Querist)
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25 August 2025 My wife started Affiliate marketing in FY 24-25 as a side hustle. The receipts for that FY were around 4 Lakh. Now she has to file ITR-3 since this needs to be shown as Income from Business and Profession. Earlier she was filing ITR-2 since she only had Interest Income and capital gain income.

My query is that how do we make the Balance sheet in ITR-3? She is doing the business in her own personal name without any current account. She is getting all affiliate commissions in her savings account which is also being used as a typical savings account. There are obviously no fixed assets, no investments, no liabilities.

Do I just show the savings bank account balance as her assets and the same figure as her capital in the liabilities section? Can this be done since the savings account credits includes all affiliate commission receipts, debits includes all expenses and other debits are all personal expenses which can be assumed as drawings. Can someone please guide me?

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)
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25 August 2025 Almost there. Segregate the assets used or invested for the said business and cash at hand. Any debtors or stock in trade... That will be give more perfectness.

Ashish Agarwal

Ashish Agarwal (Querist)
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25 August 2025 Thank you so much, Sir.
No investments, no cash withdrawn. No debtors since all income is on receipt basis. Many times the commissions are reversed so we take them on receipt basis only. No stock involved as she gets commission on selling other people's products. Thanks again, Sir.

Ashish Agarwal

Ashish Agarwal (Querist)
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25 August 2025 Sir, can you help me with the nature of business CODE I should choose in ITR3 for affiliate marketing business. This business is basically promoting other people's products for which we either create a website or make youtube product reviews or promote the products on social media as well. whenever someone buys using our affiliate links included in those articles or video descriptions, we get commission.

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)
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25 August 2025 The business code 09029 is specific for commission agents (including intermediaries, brokers, etc.).

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)
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21 September 2025 Good luck....

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