Itr 3 to itr 4 44ad presumptive income how?

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Sachin Kumar

43 Points Posted on 28 July 2018

Hello CAclubindia Team,

I used to file ITR 3 every year for my business every year with Maintaining book of accounts (No audits because of less than 20 lakh)

It's almost 4 years with ITR 3 with PROFIT & LOSS and Balance sheet. NOW if I file my tax UNDER ITR 4 44AD presumptive income 6%(Digital), It will affect or I will get notice from income tax dept. for changing and not paying taxes because in this section there is no tax upto 45L (6% digital)

what do you say?

Replies (10)

CA Naveen Chand

Chartered Accountant

8022 Points Posted on 28 July 2018

you can file itr -4 but lock in period is 5 years

Sachin Kumar

43 Points Posted on 28 July 2018

I know about 5 Year lock-in. Tell me about other things, Is 44ad is only business (buying selling goods) ?

CA Naveen Chand

Chartered Accountant

8022 Points Posted on 28 July 2018

u have to show gross receipts

and take profit 8% or more

CA Naveen Chand

Chartered Accountant

8022 Points Posted on 28 July 2018

and pay taxes accordingly

Sachin Kumar

43 Points Posted on 28 July 2018

Originally posted by : NAVEEN CHAND
	u have to show gross receipts and take profit 8% or more

Yup but in my case all digital income it is 6% right.

Is 44ad is only business (buying-selling goods) ? My business is Advertisement (Can i file under 44ad)

Sachin Kumar

43 Points Posted on 28 July 2018

ANY CA will help me ?

Nikki Goel

60 Points Posted on 28 July 2018

yes u can avail this benefit if you receive all your receipts digitally
44ad is not just for merchandise business

ABHIJIT MANNA

ACCOUNTANT

360 Points Posted on 28 July 2018

If I filed continuously 5 years u/s 44AD, after that I will be granted to file agains U/s 44AD or what?

Nikki Goel

60 Points Posted on 28 July 2018

yes u can file again u/s 44ad .lock in period is just to ensure no misutilisation of the tax benefit scheme given under 44 ad and doesnt take away rights from filing Ur return under section 44 ad.

Sachin Kumar

43 Points Posted on 28 July 2018

Originally posted by : Nikki Goel
	yes u can avail this benefit if you receive all your receipts digitally 44ad is not just for merchandise business

My business is outside India only. It's only between ME and Another Foreign company. So the thing is Foreign company gives Advertisement independently to me & I promote it after that we share 68% and 32% with each other. What do you think mam ?