Schedule Dpm under 44ada no account casr

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If you're filing ITR-3 under Section 44ADA and have sold a depreciable business asset at a loss, it's crucial to report it correctly. While you don't maintain full books, the recommended and legally sound method is to report the sale through Schedule DPM, even in a 'no account case'. This ensures the loss is properly processed through Schedules DCG and CG, preventing potential queries from the tax authorities.

Saury

Saury (Querist)

14 August 2026 Subject: Reporting loss on sale of depreciable business asset in ITR-3 under 44ADA (no books)
I file ITR-3 under Section 44ADA (presumptive taxation, no books maintained). I have documented WDV figures from audited books in prior years.
This year, from a 15% depreciation block:
Some assets opening WDV ₹8lakh were sold for ₹4lalkh received in account
Remaining assets in the same block were taken for personal use at FMV = WDV (no gain/loss)
The entire block now ceases to exist
This results in a short-term capital loss of ₹4lakh under Section 50.
Question: Since Schedule DPM (and the full Part A-BS balance sheet) seems to require books of account, and I don't maintain books under 44ADA, is it acceptable to report this loss directly under Schedule CG, Item 6 (sale consideration ₹4,00,000, cost of acquisition ₹8,00,000) — instead of routing it through Schedule DPM → DCG → CG?
Is this a defensible, accepted approach for a no-books 44ADA filer, or does it risk being questioned since Section 50/block-of-assets treatment is normally expected to go through DPM?

Aashok Kumar Sharma online

Aashok Kumar Sharma

(Expert)

15 August 2026 Reporting a Section 50 loss directly in Schedule CG for a depreciable asset is highly irregular and risks automated queries from the tax department, even for 44ADA filers. The legally defensible and structurally accepted approach is to route the sale through Schedule DPM. You can easily do this without maintaining full books by utilizing the "No Account Case" section in Part A-BS to report basic financial summaries, which then allows the loss to auto-populate from Schedule DPM to Schedule DCG, and finally into Schedule CG without triggering schema errors.

Saury

Saury (Querist)

15 August 2026 Sir can I get your number or you can call at six two three zero four zero one six zero seven kindly help me I will pay your fees

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