How to d in 44AD

This discussion addresses a client's eligibility to file under Section 44AD of the Income Tax Act, given their turnover and incentive receipts. It clarifies that receiving incentives, especially with TDS deducted under Section 194H or 194R, generally disqualifies one from using the presumptive taxation scheme of 44AD. The advice provided is to file under ITR 3 with normal assessment. It also touches upon how to correctly account for purchase discounts (credit notes) in the trading account, suggesting that normal assessment is advisable when the profit margin is low due to these adjustments.