Income Tax form selection

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This discussion addresses how to select the appropriate Income Tax Return (ITR) form for a business that offers various services like ticket booking and money transfers. It advises on declaring actual profits based on financial statements, even if they appear low relative to bank balances. The response suggests using ITR 3 and maintaining proper books of accounts, noting that an audit might be required if turnover exceeds 1 Cr. with significant cash transactions.

Nitish Jha

Nitish Jha (Querist)

20 July 2023 sir, I am running internet center's as well as I will book train, bus tickets, money transfer & apply for jobs, I have multiple bank accounts and total credit is above 80,00,000 in my bank but actually I am having less profit, How much profit i can show and so that which itr form i have to select and under what code it be shown.

Thanking you,

Dhirajlal Rambhia

Dhirajlal Rambhia

(Expert)

20 July 2023 File ITR 3. Maintain books of accounts. Declare the actual profit as per financial statements derived by auditors.
You may be required to audit your books if the aggregate turnover is more than 1 Cr. with cash transaction more than 5%.

Dhirajlal Rambhia

Dhirajlal Rambhia

(Expert)

15 September 2024 Good luck.

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