What if there is no business income in one year
This query is : Resolved
01 July 2024
Dear All,
The assessee has declared his income last year and filed form ITR 3 as there was a business income declared U/s.44ADA. He has GST number also. However, in last financial year (2023-24 AY: 2024-25), he does not have any business income. His income comprises of bank interest and long term Capital Gain.
Which form he has to use ITR 2 or ITR 3? As old regime is beneficial to him, question is can he file ITR 2 where opting for Old regime is simply by selecting while filing return? Or he has to file form 10-IEA and ITR return 3?
Please advise.
Thanks and regards
The assessee has declared his income last year and filed form ITR 3 as there was a business income declared U/s.44ADA. He has GST number also. However, in last financial year (2023-24 AY: 2024-25), he does not have any business income. His income comprises of bank interest and long term Capital Gain.
Which form he has to use ITR 2 or ITR 3? As old regime is beneficial to him, question is can he file ITR 2 where opting for Old regime is simply by selecting while filing return? Or he has to file form 10-IEA and ITR return 3?
Please advise.
Thanks and regards
01 July 2024
If GSTIN cancelled or TO declared be NIL, can go ahead with ITR2.
08 July 2024
Thank you Sir. Could you please guide me what will happen to his status next year? Whether he can continue filing his return U/s. 44AD/44ADA if there is Business or Profession Income next year? Or he will be considered to be opted out of presumptive taxation and has to get accounts audited u/s. 44AB?
Pleas clarify.
Pleas clarify.
08 July 2024
No opted out. He can continue with sec. 44AD assessment.
Considering the development in ITD since last two three years, I would suggest to file ITR 3 with sec 44AD continued with just Rs. 1 as turnover..
Considering the development in ITD since last two three years, I would suggest to file ITR 3 with sec 44AD continued with just Rs. 1 as turnover..
08 July 2024
Thank you Sir for your expert opinion.
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08 July 2024
You are welcome.
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