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Filing ITR-3 AY 2018-19 for partner of a firm

02 July 2018

I want to file ITR-3 for a partner having income from partnership firm, capital gains from shares/mutual funds and interest income from FDRs. Pls suggest whether ITR-3 is correct. Also suggest where to fill in salary & interest income from firm as there is no separate field for such reporting in current ITR as compared to last year ITR.

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24 Replies

Dhirajlal Rambhia (SEO Sai Gr. Hosp.) (160332 Points)
Replied 02 July 2018

Income earned by the assessee by way of salary, commission, bonus, interest, etc. from other firms as if in the capacity of a partner, which has not been included in the profit and loss account of the proprietary business needs to be disclosed in item No. A24 in Schedule BP.

3 Like

Neeraj Gupta (5 Points)
Replied 03 July 2018

Sir, I have filed as per above. I received below email from Income Tax.

Your Income Tax return ITR-3 uploaded for ********** and AY 2018-19 has the following defect(s)

S.No.	Defect	Impact	Suggested Resolution
1	Income from "Profits and Gains from Business or Profession" is greater than 1.2 lakhs but particulars as in "Balance sheet/Profit &. Loss Account" are not filled	Income Tax Return may be treated as defective if particulars in "Balance sheet/Profit &. Loss Account" are not filled	Please fill Balance sheet/Profit &. Loss Account

Please ensure that the above suggested resolution(s) are followed for a defect free and faster processing of your income tax return.

Pls advise.

Dhirajlal Rambhia (SEO Sai Gr. Hosp.) (160332 Points)
Replied 03 July 2018

Have you filled 'Schedule IF' with your shares completely.?

Do you have any other propritorship business? If no, these schedules not required to be filled.

Neeraj Gupta (5 Points)
Replied 03 July 2018

Sir, yes 'Schedule IF' filled properly. copy attached.

No. i do not have any other business. Pls advise if anything to be done at my end in this ITR email now.

Attached File : 2468749 20180703182337 doc1.pdf downloaded: 578 times

Dhirajlal Rambhia (SEO Sai Gr. Hosp.) (160332 Points)
Replied 03 July 2018

This seems to be system generated mail, which now a days forwarded on preliminary observations. You may check your e-filling account, there would not be any link to reply. So, let the actual link be generated in the account, where you can reply about the source of income.

clearday (manager) (56 Points)
Replied 27 July 2018

Dear All,

Please help with following:

1. Please confirm if new deadline is 31 Aug 2018 for filing ITR3 as partner in partnership firm.

2. Also please confirm if now it is mandatory to fill up full Balance sheet and profit and loss schedule in ITR3 if a partner wants to claim expense exemption like car insurance, car depreciation, car loan interest etc. ITR3 for AT2018-19 does not have a column to fill up expense column. We have not filled up balance sheet and profit loss till last year

3. Please confirm if it is fine to put Total income from firm as remuneration + interest on partner capital minus expenses in schedule BP of ITR3, line number A24 in others column. Let me know if return will be considered defective if we do this.

Appreciate if any clarification on above.

Dhirajlal Rambhia (SEO Sai Gr. Hosp.) (160332 Points)
Replied 28 July 2018

1. Yes, unless the firm is under tax audit compliance.

2. Not separately deductible under partner's account.

3. Yes, if the difference is remarkable, query may be raised for its justification.

clearday (manager) (56 Points)
Replied 28 July 2018

Thank you Dhirajlal sir. Thanks for confirming new filing date as 31 Aug for ITR3. Just to confirm that I will put remuneration+interest - partner expenses in A24 of schedule BP. Hope this will be fine and not considered defective. From your answer, I understand that there is no separate place to put car depreciation, insurance and car loan interest in ITR3.

clearday (manager) (56 Points)
Replied 28 July 2018

And I will choose no account case with P&l and BS schedule leaving them blank. Hope this will be fine

Dhirajlal Rambhia (SEO Sai Gr. Hosp.) (160332 Points)
Replied 28 July 2018

If you choose.... business code as '00001' , the other details would not be required.....

Hardik Makhecha (GST / Direct Taxation) (99 Points)
Replied 01 August 2018

Hello,

I was going through your opinion regarding Partner's income from firm.

Actually in my case, there is a profit u/s 44AD from Proprietory business as well as Partner in another firm, thereby income of Interest, Share of Profit, Remuneration,from firm.

Since last few years we are following Presumptive Income Scheme and currently working accordingly.

In ITR-3 normally we mention details in Balance-Sheet & P&L Schedule under NO ACCOUNT CASE.

Now if we do the same and after that in Schedule BP we provide same Net Profit amount in Point 36 (i) - 44AD. Where shall we report the Share of Profit from firm in hands of Partner in ITR ?

Already reported in Schedule IF.

Now whether to be reported in Schedule EI as Exempt Income,

As share of firm in Schedule BP (if yes, it will reduce profit and thereby i can choose this option only by prior adding the amount of share of firm to PL account. Is that valid ? )

I would be grateful if you can share your opinion in this regard.

Thank You.

Dhirajlal Rambhia (SEO Sai Gr. Hosp.) (160332 Points)
Replied 01 August 2018

Already reported in Schedule IF.

That's all........ Its tax -exempt

Now whether to be reported in Schedule EI as Exempt Income ......No need.

As share of firm in Schedule BP........ No

Ali Ayaz (Student) (36 Points)
Replied 02 August 2018

Dear Sir,

Assessee is having Income from Partnerhip Firm & From Other Sources as "Other Professional service charges received"

I have mentioned Code "00001" ( as suggested by you in your earlier comments) is for the Income from Partnership firm for which no need to prepare B/S and P&L.

My Query:

Do i have to mention anther code "21008" for the income from other sources.

Please help me with the solution sir in this competative era.

Thanks in Advance

Dhirajlal Rambhia (SEO Sai Gr. Hosp.) (160332 Points)
Replied 02 August 2018

My dear,

It depends upon whether you are declaring the income under head 'PGBP' or "IFOS".

If you are declaring it under 'other sources' (schedule OS); no need of another business code.

But if you are declaring it under 'profits & gains from business & profession' head...... business code is necessary.

So, first check the amount of professional income, whether any TDS deducted, whether eligible for declaration under sec. 44ADA, etc. .... & take call.