If you filed your Income Tax Return (ITR) 3 last financial year with accounts and a balance sheet, and your turnover was Rs 40 Lakhs, you might be considering switching to ITR 4 for the current financial year (2024-25) with a turnover of Rs 50 Lakhs. This allows you to use the presumptive taxation scheme under Section 44AD. While you can file ITR 4, it's advisable to continue with this scheme for five consecutive years to avoid a tax audit.
Previous FY year 2023-24 We have filed ITR 3 with the help of books of accounts proper balance sheet and pnl account tyrnover Rs. 40 Lacs FY 2024-25 Turnover Rs. 50 Lacs can we go under 44AD presutive and file ITR 4. Can be any issue ? Please suggest