44AD RELATED QUESTIONS

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A client in the event management and fabrication stall business received significant income under TDS sections 194C and 194JB. The core question is whether this income can be declared under presumptive taxation scheme 44AD using ITR-4. Advice suggests that income taxed under 194JB (professional income) should not be included under 194C and requires filing ITR-3, not ITR-4. Tax audit requirements are also discussed, with online transactions potentially avoiding the need for it.

deepak

deepak (Querist)

06 October 2025 one client is doing event management business and makng fabrication stall for clients. client have received business receipt of RS. 2,45,00,000 under 194C tds. and Rs. 10 lac received receipt under 194JB tds. all transaction of business done through online mode. CAN we show all receipt 2,45,00,000 and 10,00,000 in 44ad and file ITR-4?

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)

06 October 2025 Payments covered by 194JB (at 10% TDS) are NOT to be included as “work contracts” under 194C, especially after the 2024 amendment.
Professional income under TDS 194JB is taxed as normal profession income, eligible for deduction of business expenses, and the TDS deducted is available as credit against the tax payable. File ITR 3.

deepak

deepak (Querist)

06 October 2025 44AB TAX AUDIT REQUIRED in our case if we file ITR-3 and select section 44AA?

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)

06 October 2025 No, as transaction are through online mode (i.e. cash transaction would be less than 5%).

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