Save Rs 499. Go Ad-Free with CAclubindia Pro for 2 Full Years. Subscribe Now!

Eligiblity for Presumptive income for ITR4 or Should file ITR3

ITR Filing 600 views 4 replies

Shashi k

3 Points Posted on 08 December 2021

Hi,

I did an internship with a company for three months, Jan, Feb, Mar of 2021 and a TDS of 10% was deducted for these three months which amounts to about 4500 and that was my only earning that Financial Year. TDS was dedcuted under 194JB as shown in Form 16A. The role i was given in payslip of internship is as Contractor and it was a IT company. I understand that i need to File either ITR3 or ITR4. To file ITR4, how can i know that this income from this profession is eligible under presumptive income under Section 44ADA?

Thanks

Replies (4)

Dhirajlal Rambhia

SEO Sai Gr. Hosp.

211715 Points Posted on 08 December 2021

SELECT BUSINESS CODE '14005' IN ITR 4. IT WILL ACCEPT SEC. 44ADA.

Shashi k

3 Points Posted on 09 December 2021

Thank you. Can u please clarify following please.. if a profession is there in Business Code dropdown in e-filing portal for ITR4 it is acceptable profession under presumptive income? also can i mention "Presumptive Income under section 44ADA" as 100% of the gross receipts ?

Dhirajlal Rambhia

SEO Sai Gr. Hosp.

211715 Points Posted on 09 December 2021

1. Only the profession specified u/s. 44AD(1) are acceptable for presumptive assessment u/s. 44ADA; not all.

2. Practically it is not possible to have 100% Net profit, though theoretically it can be; so, keep max. margin up to 95%.

debora M

BUSINESS DEVELOPMENT MANAGER

1697 Points Posted on 09 December 2021

ITR-4 Form is the Income Tax Return form for the taxpayers who opt for a presumptive income scheme under Section 44AD, Section 44ADA and Section 44AE of the Income Tax Act. However, if the turnover of the business mentioned above exceeds Rs 2 crores, the taxpayer will have to file ITR-3.