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Query For Presumptive Taxation

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Manik

266 Points Posted on 26 July 2023

Hi Team,

We have Income from following sources : -

1. Professional Receipts under Section 194J.
2. Short Term Capital Gains under the Head Income from Capital Gains
3. Savings Account Income , Fixed Depsoit Income and Dividend Income under the head Income from Other Sources.

I wish to avail Sec 44ADA for Presumptive Taxation for Professional Receipts under Section 194J as in one above. But when i open ITR 4 there is no option to fill in Capital Gains made in Point Number 2 above.

Request you to please let me know how can I avail both Sec 44ADA Presumptive Taxation and Profit from Capital Gains and which ITR Form do I need to fill in above case.

With Regards,
Manik

Replies (2)

Quick Summary

This discussion addresses how to file income tax returns when utilising presumptive taxation under Section 44ADA for professional receipts, alongside reporting short-term capital gains. It clarifies that while ITR-4 may not accommodate certain capital gains, ITR-3 can be used effectively. ITR-3 allows for the application of Section 44ADA for professional income and provides a dedicated schedule (Schedule CG) for reporting capital gains.

Dhirajlal Rambhia

SEO Sai Gr. Hosp.

121546 Points Posted on 26 July 2023

File ITR 3.

Sec. 44ADA can be availed in ITR 3 also.

Aashok Kumar Sharma

Finance/Compliance Consultant

75663 Points Posted on 08 November 2026

Professional receipts (194J) plus STCG:
• Professional receipts from a specified profession can be offered under 44ADA (50%). STCG (from shares or MFs) is reported in Schedule CG.
• ITR-4 can't be used with STCG (other than 112A LTCG up to Rs 1.25 lakh). So file ITR-3, using the presumptive (44ADA) section for professional income, and Schedule CG for STCG.
• Claim the 194J TDS.