44ADA(4) ITR and audit question

44ADA(4) says that a professional if his turnover is less than 50 Lacs and wants to declare less than 50 % profit has to do audit. 

I have prepared books of a professional and have done audit in 3CD. 

The problem is, i am using computax software and i have done the following

 

  1. added balance sheet in general information
  2. added depreciation
  3. in general information, added nature of business as 44ADA
  4. in audit information, shown the respective tick as presumptive under 44ADA

the problem is, 

  1. do i declare the business as "44ADA" in nature in which case computax does not let me save profit less than 50%.
  2. if i add normal business, then computation says that nature of business is 44ada but no income declared in 44ADA

my question is,

how to file 44ADA(4) ITR with audit. do i declare it as normal business or 44ada but less than 50% profit?

 

my turnover is 22 lacs. client is earning foreign income from upwork/fiverr etc as business consultant.  (and does not want to pay income tax at 50% tax)

 i am assuming i have to file ITR3? 

Replies (3)
Quick Summary
This discussion addresses the complexities of filing an Income Tax Return (ITR) under Section 44ADA(4) when a professional's turnover is below ₹50 lakhs but they wish to declare profits less than the presumptive 50%. The user is seeking guidance on how to correctly declare the nature of business in their tax software and whether to file under ITR-3 as a normal assessment, given that a tax audit was required. The consensus suggests filing under normal assessment, likely using ITR-3, and declaring the business nature as 'normal' rather than '44ADA' within the software to allow for profit declaration below the presumptive threshold.

Yes, you need to file ITR 3 under normal assessment. Tax audit will be applicable u/s. 44AB(d) IT act.

You can file it by using departmental utility.

agreed. but do we declare nature of business as normal or 44ADA?

Normal assessment.             

Leave a Reply

Your are not logged in . Please login to post replies

Click here to Login / Register  

Company
ARTICLESHIP 07 October 2026
Article Trainee/ CMA Trainee

RMA And Associates LLP

New Delhi

CA Inter

View Details
Company
05 October 2026
Senior Accountant

Vision IT Peripherals Pvt Ltd

Mumbai

B.Com

View Details
Company
ARTICLESHIP 29 October 2026
Article Assistant (CA Inter / CMA Inter) - Thrissur

Varma Raja & Associates

Thrissur

CA Inter

View Details
Company
14 October 2026
GST & TDS ASSISTANT

AGGARWAL SANJAY & ASSOCIATES

New Delhi

B.Com

View Details
Company
Featured 27 October 2026
semi-qualified CA

Saini Pati Shah & Co LLP, Chartered Accountants

Mumbai

CA Final

View Details
Company
ARTICLESHIP 28 October 2026
Article assistants

Shyam S Gupta and Company

New Delhi

CA Inter

View Details
Company
ARTICLESHIP 08 October 2026
ARTICLE TRAINEE

S.B.G. & CO. CHARTERED ACCOUNTANTS

New Delhi

CA Inter

View Details
Company
ARTICLESHIP 20 October 2026
CA ARTICLE

AMKN & CO

Noida

CA Inter

View Details