ITR-4 vs ITR 5

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Nisha (Querist)
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16 July 2026 Hi Sir/Ma'am
We have a query regarding the filing of the Income Tax Return for a partnership firm.

The firm had been filing ITR-4 under the presumptive taxation scheme under Section 44AD in the earlier years. However, during the current financial year, the firm has no business income. While preparing the return, the Income Tax portal is prompting us to switch the return form from ITR-4 to ITR-5.

In this scenario, should we switch to ITR-5, or should we continue filing ITR-4 by offering a notional presumptive income, considering that the presumptive taxation provisions under Section 44AD are generally expected to be followed for the prescribed period once opted?

We would appreciate your guidance on the correct course of action.

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)
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16 July 2026 If you have already declared income under presumptive assessment continuously for last Five years, you can change to ITR 5. Otherwise declare the same under ITR4.

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