Eligiblity for Presumptive income for ITR4 or Should file ITR3

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

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 ? 

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%.

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.

The decision between ITR-4 and ITR-3 depends on whether you are eligible for presumptive taxation and whether you want to opt for it this year.

You can file ITR-4 under presumptive taxation if:

You are a specified professional under Section 44ADA (doctor, lawyer, CA, architect, engineer, consultant) with gross receipts up to 75 lakh. You declare 50 percent of receipts as income automatically, no books required.

You run a business under Section 44AD with turnover up to 3 crore, provided more than 95 percent of transactions are digital. You declare 6 percent of turnover as income (or 8 percent for cash transactions).

You must file ITR-3 if:

Your turnover or receipts exceed the limits above. Or you opted out of presumptive taxation under Section 44AD in any of the last 5 years, in which case you are locked out of 44AD for the next 5 years and must maintain full books.

One important point: if you opt in to presumptive this year and later want to opt out, the 5-year restriction under Section 44AD kicks in. Plan before you choose.

This [guide on which ITR form applies for AY 2026-27](https://taxgarden.in/blog/which-itr-form-ay-2026-27-key-changes) has a detailed breakdown of all ITR forms and when each one applies, including the presumptive scheme eligibility.