ITR 4

No you are not eligible to file ITR 4 for the consecutive 5 Assessment years as per section 44 AD(4)

Yes, if applicable.......

No link with previous years' ITRs.

Provisions to be applied if a person does not opt for the presumptive taxation scheme of section 44AD and declares income at a lower rate, i.e., at less than 8%

A person can declare income at lower rate (i.e., at less than 6% or 8%), however, if he does so, and his income exceeds the maximum amount which is not chargeable to tax, then he is required to maintain the books of account as per the provisions of section 44AA and has to get his accounts audited as per section 44AB.

Consequences if a person opts out from the presumptive taxation scheme of section 44AD

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]

Refer https://www.incometaxindia.gov.in/tutorials/13.%20tax%20on%20presumptive%20basis%20in%20case%20of%20certain%20eligible%20businesses.pdf

Originally posted by : Atul Shah
	AY 2014/15 & 2015/16 field ITR 4s(सुगम) and 2016/17 & 2017/18 field ITR 4 & ITR 3 now in 2018/19 can I file ITR 4 (सुगम) ?

" I cannot understand your reply.. Yes... No...."

"Ans. ......... Yes, if applicable....... No link with previous years' ITRs."
I repeat........ there is 'NO link with previous years ITR filed' with the current year's ITR, and hence you can choose any ITR applicable for this year.

As you filed ITR3 for AY 2017-18, which means not opted for sec. 44AD last year.

Hence, "YES ..... you can opt for sec. 44AD and file ITR4 this year....."

The difference between ITR3 & ITR4 should be understood first...

If you are offering business income u/s.44AD or professional income u/s.44ADA, (i.e. income under head PGBP, but as per presumptive scheme) ......... you can file ITR4 provided you do not have any capital gains declaration; otherwise ITR3 is filed.

But when the 'PGBP' income is offered for normal assessment, or not under presumptive scheme; i.e. with books of accounts maintained, you have no other option but to file ITR3... in which case P&L accts. and BS details in full are required to be provided in ITR3 ........ and if any query in future from CPC/ITO, you have to substantiate the details as per books of accounts.......