In ITR 3, there are 2 queries to assess whether cash income and expenditure are more than 5% of the total income and expenditure. Queries are as below:
a2ii) If Yes is selected at a2i, whether aggregate of all amounts received including amount received for sales, turnover or gross receipts or on capital account like capital contributions, loans etc. during the previous year, in cash & non-a/c payee cheque /DD, does not exceed five per cent of said amount?
a2iii) If Yes is selected at a2i, whether aggregate of all payments made including amount incurred for expenditure or on capital account such as asset acquisition, repayment of loans etc., in cash & non-a/c payee cheque/DD, during the previous year does not exceed five per cent of the said payment?
Whether we should select select Yes or No, incase the cash income / expenditure do not exceed 5% of the total income / expenditure.