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ITR 3 OR 4 ?

ANIL KUMAR (B.Com) (61 Points)

15 March 2018

I want to know which ITR should i file either ITR 3 or 4 . My annual turnover is Rs 24 L from business.

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9 Replies

Rahul Prasad (CA Student) (1683 Points)
Replied 15 March 2018

fill ITR 4 under 44AD .

CA Urvi Gandhi (.) (347 Points)
Replied 15 March 2018

Dear Anil,

You can file ITR 3 if you are maintaining books of accounts

Or you can file ITR 4 (Presumptive income) if your Turnover less than 2 crores and show 8% profit (cash receipts) or 6% profit (Digital Receipts) if your business falls under Eligible business category of 44AD of income tax act.

Please note, if you show profit under Presumptive income, you need to atleast follow the same for next 5 years.

Rahul Prasad (CA Student) (1683 Points)
Replied 15 March 2018

Mam, can you please more clarify that it is mendatory to follow the same for next five years. suppose this this mr Anil turnover is 24 lacs and further it will increase and he wants to move another ITR . Is it valid , can you please refer any notification or circuller for it.

thanks

RAJA P M ("Do the Right Thing...!!!") (127140 Points)
Replied 15 March 2018

Dear Anil.,

Your query is not cleared...
What is Your exact business?

I think if you are asked AY 17-18...?

If You will say the nature of Business and Assessment Year then You can get exact solution from Our CCI Experts...

CA Urvi Gandhi (.) (347 Points)
Replied 15 March 2018

Dear Rahul, Please refer to attached file

Attached File : 884987 20180315152707 44ad tax on presumptive basis in case of certain eligible businesses.pdf downloaded: 105 times

Rahul Prasad (CA Student) (1683 Points)
Replied 15 March 2018

Mam,
with due respect I would put my interpretation that if he opt out presumptive taxation within five years then further for 5 years they can not opt the presumptive income and have to maintain books of accounts. it does'nt mean that we have to maintain atleast five year what you provided reference file the relevant line I am pasting follow in which example also given there.

(Relevant line of the copy provided by you)
If a person opts for presumptive taxation scheme then he is also require to follow the same
scheme for next 5 years. If he failed to do so, then presumptive taxation scheme will not be
available for him for next 5 years. [For example, an assessee claims to be taxed on presumptive
basis under Section 44AD for AY 2017-18. For AY 2018-19 and 2019-20 and he offers income
on basis of presumptive taxation scheme. However, for AY 2020-21, he did not opt for
presumptive taxation Scheme. In this case, he will not be eligible to claim benefit of
presumptive taxation scheme for next five AYs, i.e. from AY 2021-22 to 2025-26.]
Further, he is required to keep and maintain books of account and he is also liable for tax audit as
per section 44AB from the AY in which he opts out from the presumptive taxation scheme. [If
his total income exceeds maximum amount not chargeable to tax]