Priouous year tax audit now no turnover

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This discussion addresses how to file your Income Tax Return (ITR) when you have no turnover in the current financial year after having a significant turnover and tax audit in previous years. It clarifies that if the business is not officially closed, and you haven't incurred capital gains, ITR-1 might be applicable. For those who previously used Section 44AD and had tax audits due to high turnover, the advice is that filing ITR-4 is still an option for AY 2025-26 as the five-year opt-out rule has not been breached.

uma sharma

uma sharma (Querist)
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07 December 2025 Previous year my turnover was 2 cr now in year fy 2024-25 there is no turnover . No audit happened this year . Then which itr and which form should i submit

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)
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07 December 2025 Have you closed business? if yes, file ITR 2 if capital gains declaration; otherwise ITR1.

uma sharma

uma sharma (Querist)
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08 December 2025 I haven’t closed the business but will close it soon then do i need to file itr1 only?

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)
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08 December 2025 Yes, provided no capital gains in the year.

uma sharma

uma sharma (Querist)
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08 December 2025 Sir in ay 2020-21 i filed itr 4 u/s 44ad .for ay 2021-22 to ay 2024-25 my turnover was above 2crore so tax audit was conducted. In the ay 2025-26 my turnover is 40k . In this case i can file itr u/s 4 (44ad) or do i need to file itr 3 without tax audit . Please tell me do i need to follow 5 year opt out rule

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)
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08 December 2025 You can file ITR 4 in AY 2025-26, as the five year rule not breached.

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