Income tax return

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Querist : Anonymous

Querist : Anonymous (Querist)

16 May 2017 Dear Expert,
A courier agency who's turnover is 3800000 (38 lac), which itr form applicable.

Expert : Anonymous

Expert : Anonymous (Expert)

16 May 2017 your asking on the companies perspective or an individual. .?

Aashok Kumar Sharma

Aashok Kumar Sharma (Expert)
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31 July 2024 For a courier agency with a turnover of ₹38,00,000 (38 lakhs), the applicable Income Tax Return (ITR) form depends on the type of business and the accounting methods used. Here are the guidelines:

### **1. **ITR Form Applicability**

- **ITR-3:**
- **Applicability:** If the courier agency is run as a proprietorship or a partnership firm and maintains books of accounts, you should use ITR-3. This form is used for individuals and Hindu Undivided Families (HUFs) who have income from a business or profession.
- **Features:** Includes sections for reporting income from business or profession, including profit and loss statements and balance sheets.

- **ITR-4 (Sugam):**
- **Applicability:** If the courier agency is eligible to file under the presumptive taxation scheme under Section 44AD of the Income Tax Act, and the turnover does not exceed ₹2 crore, then ITR-4 can be used.
- **Features:** Simplified form for businesses opting for presumptive taxation where 8% (or 6% for digital receipts) of turnover is treated as income. Suitable for small businesses that don't maintain detailed books of accounts.

### **2. **Eligibility for ITR-4 under Section 44AD**

- **Turnover Limit:** If the turnover is ₹38,00,000 and the business falls under the presumptive taxation scheme, you can opt for ITR-4.
- **Conditions:**
- The business should be a resident individual, Hindu Undivided Family (HUF), or a partnership firm (other than LLP).
- The business should not be engaged in professions covered under Section 44AA(1), like accounting, interior design, etc.
- The business should not have any income from sources such as capital gains, or income from foreign assets.

### **3. **Filing Requirements**

- **Books of Accounts:** If opting for ITR-4 and claiming presumptive taxation, detailed books of accounts are not required, but the turnover must be accurately reported.
- **Supporting Documents:** Maintain records of income, expenditure, and other relevant documents for audit purposes if required.

### **Summary**

- **If opting for presumptive taxation under Section 44AD:** Use **ITR-4**.
- **If maintaining detailed books of accounts or if not eligible for presumptive taxation:** Use **ITR-3**.

Ensure that you meet all eligibility criteria for the chosen ITR form and consult with a tax professional for accurate filing and compliance.

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