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)

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)

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

uma sharma

uma sharma (Querist)

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)

08 December 2025 Yes, provided no capital gains in the year.

uma sharma

uma sharma (Querist)

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)

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

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