Change from employee to consultant

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This discussion addresses an individual who retired from employment and is now receiving consultancy fees. They are seeking advice on the correct Income Tax Return (ITR) form to use, specifically whether ITR1, ITR2, or ITR3 is appropriate. The consensus suggests ITR3 or ITR4, with a recommendation to consider ITR4 under presumptive taxation scheme 44ADA for simplicity, declaring 50% of the consultancy income.

Padam Gupta

Padam Gupta (Querist)
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23 July 2022 I am a Chartered Accountant and retired from Service in FY 2020-21.
In FY 2021-22 I have received Consultation Fee for which TD has been deducted u/s 194JB.
Can I file my return in ITR1 or ITR2 or I have to file in ITR3?
A prompt response will help me file my return in time.
Regards,
Padam Shree Gupta
9903479357

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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23 July 2022 You can file ITR 3 or ITR 4.

Padam Gupta

Padam Gupta (Querist)
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23 July 2022 Thank you so much for your prompt response. Regards.

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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23 July 2022 You are welcome............

Padam Gupta

Padam Gupta (Querist)
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24 July 2022 Please guide at which S.N. and sub-S.N. the Consultancy fee received and the expenses incurred, should be shown in ITR3.
Shall be grateful for guidance.
Regards

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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24 July 2022 How much consultant fees received.

Padam Gupta

Padam Gupta (Querist)
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24 July 2022 Rs. 3,60,000.
Apart from above, other income consists of Interest, Pension from FPF and very nominal rent.
Regards

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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24 July 2022 In such a case file ITR 4 opt for 44ADA and declare income 50% of 3.60 lacs.
It's simple form.

Padam Gupta

Padam Gupta (Querist)
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25 July 2022 Thank you so much. Regards