ITR-4 Business Income OR ITR-1

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This query is : Resolved

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This discussion clarifies whether to file ITR-1 or ITR-4 based on your income sources. If your boutique business is closed and tuition income was declared separately (not as business income), you can likely file ITR-1. Opting out of presumptive taxation (44AD) when your business ceases should not cause issues with the IT department, but ensure tuition income was correctly declared in previous returns.

Sanjeet

Sanjeet (Querist)
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27 January 2023 Dear Sir,

I have filed my ITR-1 FY 2019-20 income from Salary+ Tuition income and FY 2020-21 filed ITR-4 income from Business boutique+ in other tution income + FD interest. but in FY 2021-22 i don't have income from boutique only income from tuition income+ fd interest and minor income from maintained books of account So please suggest can i go for ITR-1 or its mendatary to me file ITR-4. If i opted out of 44AD Can i face any problem from IT department Please advise

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)
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27 January 2023 If ITR 1 is filed, there may be query if the income from tuition was also added to business income in ITR 4 in preceding year.
If tuition income was declared under IFOS, you can go ahead with ITR 1.

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