Why is a balance sheet required to file ITR3?

Income from Intraday and F&O trading is considered as Business & Professional Income under the IT Act. And books of accounts are required to be maintained for the same throughout the year. The outcome of the same is P&L and Balance Sheet which needs to be reported while filing ITR 3. 

It is a reporting requirement as per ITR3 to add a balance sheet and P&L. Income and expenses from business and profession generate the Profit and Loss statement. Meanwhile, the balance sheet comprises of closing balance of assets and liabilities for the financial year (eg: bank balance, balance with broker, cash balance in assets). As per the accounting rule, assets should always equal liabilities which should be accounted for when preparing the same.   

Read More: Add/edit assets & Liabilities in the balance sheet on Quicko