Which ITR return is to be filed by a carpenter making furniture as per customer specifications

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If you're a carpenter creating bespoke furniture, the correct Income Tax Return (ITR) form depends on whether you maintain books of account and opt for the presumptive taxation scheme. Generally, ITR-4 is used with the presumptive scheme, but specific circumstances, such as being a company director or having certain types of income, might require you to file ITR-3 even if you choose presumptive taxation.

Manoj Chauhan

Manoj Chauhan (Querist)
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06 August 2024 Dear Sir,

Please let me know which ITR form should be filed by a carpenter who makes furniture as per the specifications given by customers.

Thanks.

Dhirajlal Rambhia online

Dhirajlal Rambhia online

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06 August 2024 File ITR 3 if books of account maintained.

Nikhil Kaushik

Nikhil Kaushik (Expert)
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06 August 2024 it could be ITR-3 or ITR-4. depends on whether you are choosing presumptive scheme or not. If you choose presumptive scheme, generally ITR-4 will be applicable. But, keep in mind that even if you are choosing presumptive scheme, there are other factors that may require you to choose ITR-3.

Nikhil Kaushik

Nikhil Kaushik (Expert)
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06 August 2024 These are the conditions under which even with presumptive scheme, ITR-4 cannot be filed:
Assessee:
- is a Resident but Not Ordinarily Resident (RNOR), or Non-Resident Indian
- has total income exceeding ₹ 50 Lakh
- has agricultural income in excess of ₹5,000/-
- is a Director in a Company
- has income from more than one House Property;
- has income of the following nature:
- winnings from lottery;
- activity of owning and maintaining race horses;
- income taxable at special rates u/s115BBDA or Section 115BBE;
- has held any unlisted equity shares at any time during the previous year
- has deferred income tax on ESOP received from employer being an eligible start-up

Manoj Chauhan

Manoj Chauhan (Querist)
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18 September 2024 Thanks both of you for your kind guidance.

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