Respected madam, I desperately need your help as i am filing Income tax return of my client by taking benefit of section 44ADA. The said client has income more than one house property. Therefore I m not able to use form 4 which is specifically meant for presumptive taxation. I hv to file in form itr 3. The query is actual expenses are less than 50% ,can i still go ahead and claim the same. Since gross receipts are more than 2.5 lakhs i am compelled to fill P n L as well but i hv no expenses to match 50% and hence income offered as per P n L will be higher while as per 44ADA 50% .Both contradict each other.I understand from Section as read,50% or actual whichever higher is taxable
Even if you would be filing ITR 4 you must show actual profit if it's above 50%.
And if you are filing ITR 3 because of some reason that doesn't mean you have to fill full ITR you can still show the income under presumptive Taxation in profit and loss clause 62 in profit and loss schedule.
Hope you find the information helpful if you do please rate it 5 and provide your valuable feedback for my improvement.
Thank you
Sir ,thanks for your valuable and prompt reply .But I don't agree with you on point that filling ITR 3 does not mandate to punch in every schedule.Since gross receipts are more than 2.5 lakhs ,immediately as i submit return,i got email from donotreply stating that filling up of PNL and Balance sheet is mandatory
Hi
you can avail benefits of 44ADA in Itr form 3
there is no issue
Bs and pl not mandatory at all
Hi,
- You need to file ITR-3. For presumptive taxation, fill balance particulars for No accounts case in Part BS and in Part PL, fill column 62 and 64 both. In such scenario, you will not get any e-mail after filing of ITR. If net profit is more than 50%, show the income from BP at such higher rate.
Sir I respect your observation and you might have received an email but I am chartered accountant and I have practically filed many returns like this so can't agree with your view.
Dear Sir,
Hope you are doing well !!
You can take the benefit of presumptive taxation scheme.
You need to file ITR 3.
However, it will be much, much better in long run if you declared your actual income and paid due taxes. That way you can fully enjoy your hard earned income.
You need to fill column 62 and 64 for no accounts case.
We have handled such cases before. We may help you in return filing.
Hello,
You can file ITR-3 and claim presumptive taxation scheme u/s. 44ADA.
Declare the actual profit being higher in your case.
I hope this answer satisfies your requirement.
Regards,
CA Hunny Badlani
Select No accounts case in Balance Sheet and P&L account and fil the lessor requisite details in the schedule.
Hi
You don't need to fill entire profit and loss account in the ITR 3.
Only balances of cash, inventory, debtors and creditors have to be shown.
Since it's under presumptive taxation, it is a no accounts case.
Please select 'no' for maintenance of books as required under section 44AA.