Doubt about Balance sheet information - ITR 3

Income Tax Income from Business or Profession
1

Good Evening Ma’am @Surbhi_Pal
I am new to ITR-3 & filing through quicko. I have filled all details but I have some doubt in balance sheet information (under Business & Profession - Zerodha Trading Business). Please clarify my doubt which listed out below.

Please note: My income sources FD, Dividend & Trading income only.

A. Asset & liabilities

  1. Under Asset & liabilities, what does mean investments (Long & Short Term). Is it my Equity investment or ?
  2. What does mean value of the stock held as on 31/03. Is it my holding value. If yes, I’m not able to enter the negative values.
  3. Can I mention, my laptop & mobiles under fixed asset which I bought it 2014 & 2020. If yes, shall I mention the same devices every year ie. 2024-25-26

B. Expenses

  1. I have life insurances of myself & family. Should I mention under Insurance (Sub head: Life insurance) or Should I mention under detection 80CCE. (I have PPF also)
  2. How to enter the Duties & Taxes & Transfer charges like STT, Stamp duties, Brokerage & etc ?. Should I enter manually calculate from Zerodha P&L report or is it already added.?

And last, so far I filled my ITR-1 under old regime but ITR-3 default new regime. If I try to change, it’s asking form disclosure of 10IEA. For me, right now no issue with new regime but some of friends feels old regime who has housing loans. What’s your advice for them & how to change to old.?

Sorry for very such long question. Your answers will be helpful to beginners & new to ITR-3

Thank you & looking forward your reply.

2

@Surbhi_Pal Ma’am, I think you missed my question. Request to assist.

3

Hi @moorthi,

Apologies for missing out on this. The balance sheet you are required to fill will contain the details of the assets and liabilities related to the business, which is trading in your case.

Hence, your personal assets and liabilities like investments in life insurances, PPF etc. need not be mentioned. You are not required to mention equity investments as well if you are not reporting your capital gains as business income.

You can add assets like laptops and claim depreciation on them if they are being used for trading.

For adding expenses, you’ll have to go to incomes > business & profession > select the business > expenses.

For individuals with business income, filing form 10-iea is mandatory if you wanna go for the old regime. Also, if you switch back to new, you’ll not be able to opt for the old regime again. For comparing the regimes based on what deductions you have, this thread can help you out: New vs Old Regime: Which is better in AY 24-25?

1 Like
4

@Surbhi_Pal hi

I am importing intraday income from Zerodha under income > business profession > trading securities

It is showing balance sheet error…assets and liabilities needs to be updated…what goes in it?

Income and turnover is coming under income head
Also it is showing non editable taxation scheme.> Regular with books of account

Kindly help

5

@Surbhi_Pal Kindly address this in case you have missed. Thanks!!

6

@Abhinav_Gupta You need to update complete information of liabilities also.

7

You mentioned that The balance sheet you are required to fill will contain the details of the assets and liabilities related to the business, which is trading in your case.

However, I have pledged my securities for margin and trade using those margins. Need i to discloses value of such pledged securities?

8

Hi,
In this case of ITR 3, is it necessary to mention the cash and bank balance if you are reporting capital gains separately

9

Hi @Girimon_Vasudevan

I was going through your query. You can mention show cash & bank balance, it is a specific query. You can also connect with me on WhatsApp 9999616874 to further discussion.

Regards,
CA Raman

10

Thanks. I am just wondering because it features under Current assets along with stock under the category of Business and profession.

11

Yes you are right, if it is business income then required.

12

In case of pledge security and trading by that margin. Stock investment is part of balancesheet for ITR or only cash balance? Do i need to mention assets like house n home loan n other assets?