Filing ITR3 where income under section 44AD with Long term capital gain

No. It is not mandatory to report the bank balance separately in Part A-BS when filing ITR-3 under Section 44AD.

Where income is declared under Section 44AD and regular books of account are not maintained, Part A-BS requires only the prescribed particulars such as Sundry Debtors, Sundry Creditors, Stock-in-Trade and Cash Balance.

Bank balance is not a separate reporting field in Part A-BS. Therefore, there is no requirement to disclose the bank balance separately, and it should not be merged with cash balance, as cash-in-hand and bank balance are distinct assets.

However, ensure that:

• The capital account and other schedules are consistent with the disclosed assets and liabilities.
• The bank account details are correctly furnished in the Bank Account Schedule for refund/EVC purposes.
• If books of account are maintained, then the Balance Sheet should be reported accordingly instead of the presumptive reporting.

• Cash in hand: Physical currency, coins, and petty cash kept on your business premises.
• Bank balance: Money held in checking, savings, or current accounts that you can withdraw or spend instantly. 

ITR-3 with both Section 44AD presumptive business income and LTCG is a common scenario. Here is how to handle it:

ITR FORM SELECTION: ITR-3 is correct if you have business income (presumptive under 44AD) plus capital gains. ITR-4 is NOT suitable if you have capital gains - use ITR-3.

HOW TO FILL:

• Under Section 44AD, declare 8% of gross receipts (or 6% if receipts are via banking channels) as presumed profit
• No need to maintain books if turnover is under Rs 3 crore and you declare 44AD income

• Fill Schedule 112A for equity shares and equity mutual funds
• Remember AY 2026-27 period split: pre-July 23, 2024 gains at 10% with Rs 1 lakh exemption; post-July 23, 2024 at 12.5% with Rs 1.25 lakh exemption
• LTCG on other assets: Schedule CG > Long Term > Other than listed securities

• Business income under 44AD is taxed at slab rates
• LTCG on equity (Section 112A) is taxed at flat 10%/12.5% with exemptions, separately from slab
• STCG on equity is taxed at 20% (post July 23, 2024) or 15% (pre July 23, 2024)

NOTE: If your business turnover exceeds Rs 3 crore, or if your declared profit is less than 8%, you cannot use Section 44AD and must maintain books.

For guidance on TDS on contractor payments if your business makes such payments: [TDS on Contractor Payments Section 194C Guide India](https://taxgarden.in/blog/tds-on-contractor-payments-section-194c-393-guide-india)