ITR-3: Handle multiple businesses in Balance Sheet & How to report loan used for trading?

Income Tax ITR Filing
1

Hello everyone,

I need some clarity regarding ITR-3 filing for a combination of incomes and business activities. Here’s my situation:

  • Filing ITR-3
  • Sources of income:
    • Salary
    • Intraday trading (treated as speculative business)
    • STCG from equity delivery (as a capital gain and not as a business)
    • A separate business (as sole proprietor) with regular income and expenses

:red_question_mark: Doubts:

  1. Personal Loan Disclosure:
  • I had taken a ₹ personal loan from a bank during the year Feb 2024.
  • It was used only for trading and equity investments, not for my sole proprietorship business.
  • Do I need to show this loan in the Balance Sheet section of ITR-3 FY 24-25?
  • If yes, should it go under the trading business only?
  1. Multiple Businesses in ITR-3:
  • Since I have two separate businesses (sole proprietorship + intraday trading shown as business), do I need to report separate Balance Sheets and P&L for each in ITR3?
  • Should I add two separate business codes under the “Nature of Business” section?
  1. Missed Loan Disclosure Last Year:
  • I forgot to mention this loan in last year’s ITR balance sheet.
  • I didn’t claim any interest expense on it.
  • What should I do now? Should I revise the return or just include it in the current year’s ITR with proper notes?

:brain: Additional Notes:

  • I am not opting for presumptive taxation.
  • I keep books of accounts for both businesses.
  • No interest expense was claimed last year, but I may claim interest in the current year.

Would appreciate any advice from professionals or others who have handled similar situations. :folded_hands:

Thanks in advance!

2

Hello @Murli

I will answer your queries one by one:

  1. Yes, the personal loan taken in the F.Y. 2022-2023 should be disclosed in the balance sheet of ITR 3.
  2. Yes, if you have two separate businesses, then you should report balance sheet and profit and loss separately for each business and also separate business code for the business depending on the nature of business.
  3. In case you have missed the loan disclosure last year, there is no need to revise the last year’s filed return, just include it in the current year’s ITR along with the necessary notes.

Hope this helps!!