Which Income Tax Return (ITR) form would I need to file for the investments made via Grip?
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 an investor in LLP, I am earning post-tax returns. Do I still need 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.
What is the deadline to file Income Tax Return (ITR) this year and What is the time period for which income tax returns have to be filed?
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.
What is the process to file ITR for my investment via Grip?
- 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.
- 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.
- 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.
- Submit the ITR on the income tax e-filing portal and e-verify it.
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