Itr4 or itr 3

you will go with ITR-3 

Originally posted by : CA Anoop Kumar Sharma
	you will go with ITR-3

Please can you give reason for above suggestion...

Why ITR 3 & Reason...??

Why not ITR 4 & reason...??

Originally posted by : RAJA P M
	Originally posted by : CA Anoop Kumar Sharma you will go with ITR-3  Please can you give reason for above suggestion... Why ITR 3 & Reason...?? Why not ITR 4 & reason...??

Before we understand the difference between ITR-3 and ITR-4, we need to be clear about ITR-4 is for resident individuals & HUF & partnership firms that have chosen the presumptive taxation scheme under Sections 44AD, 44ADA, or 44AE, with an income of up to Rs. 50 lakhs. 

Presumptive taxation for businesses is covered under Section 44AD. Businesses with a turnover of less than Rs. 2/3 crore can choose this scheme and must declare profits of 8% for non-digital transactions or 6% for digital transactions. The following businesses cannot use presumptive:

• Life insurance agents
• Commission agents
• Businesses involved in plying, hiring, or leasing goods carriages  

so we need file ITR-3. 

Originally posted by : CA Anoop Kumar Sharma
	Originally posted by : RAJA P M Originally posted by : CA Anoop Kumar Sharma you will go with ITR-3  Please can you give reason for above suggestion... Why ITR 3 & Reason...?? Why not ITR 4 & reason...?? Before we understand the difference between ITR-3 and ITR-4, we need to be clear about ITR-4 is for resident individuals & HUF & partnership firms that have chosen the presumptive taxation scheme under Sections 44AD, 44ADA, or 44AE, with an income of up to Rs. 50 lakhs.  Presumptive taxation for businesses is covered under Section 44AD. Businesses with a turnover of less than Rs. 2/3 crore can choose this scheme and must declare profits of 8% for non-digital transactions or 6% for digital transactions. The following businesses cannot use presumptive: Life insurance agents Commission agents Businesses involved in plying, hiring, or leasing goods carriages   so we need file ITR-3.

Well...

Now, the query resolved and querist also got why insurance income through ITR 3.

ITR-4 is the simpler form and works if your only income sources are presumptive business or professional income (44AD or 44ADA), salary, and interest or small dividend income. If you also have capital gains from stocks, mutual funds, or property, or have a foreign asset to declare, or the business turnover exceeded the 44AD or 44ADA limits, you move to ITR-3. The CBDT released ITR-1 and ITR-4 Excel utilities on May 15, 2026, so presumptive filers can start now. ITR-3 utility is expected shortly after. Our [ITR-4 filing guide for AY 2026-27](https://taxgarden.in/blog/itr-4-sugam-filing-guide-ay-2026-27) has the eligibility checklist so you can confirm which form applies to you before starting.