Relevant ITR form to file IT return

Save Share

This query is : Resolved

Quick Summary

A pensioner who also runs a proprietary business and previously filed using ITR 4 has sold a property, incurring a long-term capital gain. They are seeking advice on whether they can now file using ITR 3 for the current financial year and if they can switch back to ITR 4 in subsequent years. The advice confirms that filing with ITR 3 is permissible, even while continuing to declare business income under Section 44AD, and that reverting to ITR 4 in the future is also possible.

Gopalakrishnan. S

Gopalakrishnan. S (Querist)
Follow

25 July 2023 Sir,

One of my friend is a Pensioner and is also running a proprietory business for
the past three years. For the past 2 years, he has filed ITR 4.
This year, ( FY - 22 23 ) he has sold a property and has incurred long term Capital gain.

Now, can he file his IT return in Form ITR 3 for this FY ?

If yes, can he revert back to ITR 4 in the subsequent years ?

Pls. advice.