I retired in June 2024 and did a 3 month stint as visiting professor in a university earning around 1 lakh rupees. I have been filing ITR2 all along as my salary was above 50 Lakh. This year, I have 3 months of salary, 1 lakh professional fee as visiting professor, capital gains above 1.25 lakh so not eligible for ITR4. But ITR 3 requires me make a balance sheet which i dont have. Can i file ITR2 and include this 1 lakh amount of pressional fee earned as visiting professor.
File ITR 3 with professional income under presumptive assessment (u/s. 44ADA); no books of accounts mandatory.
Under balance sheet only few details like cash in Tab 65 required.
Thanks for the response. Just one additional data point - my salary before retirement + interest income + capital gains are above 50 Lakh and the professional income for visiting professor role is just 1 lakh. If I want to avoid complications can I just file ITR2. Will this be wrong as per IT rules.
Whether TDS has been deducted over the professional income of Rs. 1 lakh?
Yes, 10% tds has been deducted and is reflecting in my AIS.
If you file ITR2 by declaring the income in 'Other Income' you are likely to get query from CPC; so advisable to file ITR3.
Just one more doubt sir.
Does that mean I have to prepare a BS and P&l as well?
With major portion of my income being salary+interest+CG (98%) do I need to do all of this only for 1.21 lakh rupees of technical consulting?
No. When you declare that income under Sec. 44ADA, no books of accounts are required to be maintained. Only few details in BS tab 65 like cash in hand.
That's a great question, as it can get confusing when you have multiple income sources. While it seems the consensus here is leaning toward ITR-2 or ITR-4, the most reliable approach is to get a professional consultation.
A qualified CA can review your specific situation and make sure you're filing the correct form to avoid any future issues with the Income Tax Department.
When you have salary, capital gains (any amount), and professional income all in the same year, ITR-3 is the correct form. ITR-1 is only for salaried individuals with interest income and no capital gains. ITR-2 covers salary and capital gains but not professional or business income. ITR-4 uses presumptive taxation only and cannot include capital gains. ITR-3 handles all three streams together. If your professional income qualifies under 44ADA (notified profession, receipts under Rs 50 lakh), you can still use the presumptive method within ITR-3 without switching to ITR-4. A breakdown of who files which form for AY 2026-27: https://taxgarden.in/blog/itr-3-ay-2026-27-who-can-file-changes-deadline
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