Hello, I need guidance regarding the correct ITR form and presumptive taxation for my business.
I am planning to start a business where I promote birthday/“thank you for the birthday wishes” video services through Facebook. Customers will place orders with me and make payments to my bank account. I will then hire freelancers through Fiverr to create the videos and deliver the final videos to the customers.
For example, if I receive ₹30 lakh from around 500–600 customers during the financial year, I expect to pay approximately ₹15 lakh to freelancers and retain the remaining amount as my margin.
I would like to know:
Should I file ITR-3 or ITR-4?
Can I opt for presumptive taxation under Section 44AD for this business?
Does my business qualify as a normal business/service business, or could it be considered commission/agency business, which may affect 44AD eligibility?
For 44AD, should my turnover be considered ₹30 lakh or only my ₹15 lakh margin?
What business/activity code should I select in ITR-3?
Am I required to maintain books of accounts under Section 44AA if I opt for 44AD?
Does the fact that the actual video creation is outsourced to Fiverr freelancers change the tax treatment?
CAclubindia
