Ad-Free CAclubindia and daily updates on your mobile. Subscribe Now!

whether audit applicable

04 July 2019

A person wants to file ITR-3 having commission income for giving financial intermediaries service (loan from bank) . He has not maintained books of account.
If he wants to file ITR-3 under "not maintained Accounts section". Whether is it compulsory to disclose profit @ 50% for service OR @ 8% for business income. ???

Reply
Follow
Share

4 Replies

A B Kundu (Professional) (1422 Points)
Replied 04 July 2019

No, the above quoted provision shall be applicable if you use ITR-4.

Upgrade to CAclubindia Pro. Subscribe Now!

JAYKISHAN PATEL (60 Points)
Replied 04 July 2019

you mean to say if I file ITR-3 with lower than 8% or 50% profit (without maintaining Accounts) then also it is correct. ???

Ravi SADhiyan (Practice) (4510 Points)
Replied 04 July 2019

Originally posted by : JAYKISHAN PATEL
	you mean to say if I file ITR-3 with lower than 8% or 50% profit (without maintaining Accounts) then also it is correct. ???

ITR 3 and ITR 4 are the two forms applicable to taxpayers earning income from business and profession. Where ITR 3 applies to income from business profession, salary and other sources; ITR 4 applies to taxpayers who opt for declaring income under the presumptive scheme. Here are some more interesting facts about these ITR forms.

A B Kundu (Professional) (1422 Points)
Replied 04 July 2019

Originally posted by : JAYKISHAN PATEL
	you mean to say if I file ITR-3 with lower than 8% or 50% profit (without maintaining Accounts) then also it is correct. ???

Yes. If you opt for presumptive taxation subject to the eligible nature of your business then you have to file your return through ITR-4 and in that case only 8%, 50% applicable.