Which itr to fill for earnings by home baker

Thanks Pravin

1. Home baking is a good business and can be very tiring at times. Anyways with respect to tax, income from such business will be considered as business income and not a profession. 
2. Presumptive taxation u/s 44AD can be opted for and there is no need for maintaining BOA as such. 
3. 8% of the gross receipts during the year will be considered as income and tax shall be payable on the same. The 8% will be replayed by 6% if the receipts are through NEFT, RTGS and not through cash. 
Please correct me if the above solution has an alternative view. 

Thanks Suresh. I have a similar understanding as yours.

With reference to your point 3, do we need to keep separate records of gross receipts? or will it be fine to keep bank statements as records?

Also does transactions through Wallets like Paytm be counted for 6% of gross receipts like NEFT, RTGS?

1. Generally, bank statements are considered as a valid record. But it would be best if you have a separate record for gross receipts and do a cross-verification and reconcile it for its authenticity. 

ITR-4 (Sugam) is the right form if the home baker opts for presumptive taxation under Section 44AD.

Under Section 44AD: declare 8% of total gross receipts as taxable profit (or 6% if receipts are via banking/digital channels). No detailed books required. Applicable if total turnover does not exceed Rs 3 crore (for those with 95%+ digital receipts) or Rs 2 crore under standard limits.

If instead the baker wants to declare actual profits lower than 8%: file ITR-3 and maintain books of accounts as required under Section 44AA.

Quick checklist for filing under ITR-4:
- Total revenue from all sources (Swiggy, Zomato, direct orders, events)
- TDS deducted by delivery platforms ,  check Form 26AS
- Bank interest under Income from Other Sources
- Section 80C deductions if applicable

This [income tax guide for home bakers AY 2026-27](https://taxgarden.in/blog/income-tax-for-bakery-owners-home-bakers-india-ay-2026-27) covers ITR form selection, GST thresholds, and presumptive vs books-of-accounts option with worked examples.