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Income Tax Returns
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Investors in leasing transactions via Grip become partners in a Limited Liability Partnership (LLP). Any person that earns income/profit by being a partner in a LLP is required to file ITR-3.

As a partner in a LLP, it is mandatory for you to file income tax returns, even if you are earning post tax returns. While there will be no additional tax liability for your returns from investments via Grip, it is mandatory to disclose all sources of income.

The financial year in India begins on the 1st of April and ends on the 31st of March next year. So any income earned/accrued between 1st April 2021 to 31st March 2022, needs to have the income tax returns filed on or before 31st July 2022.

  1. The process for filing ITR-3 is the same as other ITRs. The only difference is the form being used. A detailed step-by-step process is mentioned in this Link. Specific inputs related to ITR-3 are mentioned below.
  2. Once you have downloaded the ITR-3 excel/xml format from the income tax e-filing portal (Income Tax Portal), fill the information in the ITR-3 on the basis of the Grip Investment Declaration (GID) that will be provided to you by Grip. If you have earned any other income, disclose it in the relevant tabs in ITR-3.
  3. Validate all tabs of the ITR-3 form and calculate the tax. The tax from investments via Grip will be nil as profits earned from a LLP are tax exempt.
  4. Submit the ITR on the income tax e-filing portal and e-verify it.