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Business ITR Filing

ITR-3 for business / profession income and ITR-4 (Sugam) for presumptive taxation under Sections 44AD, 44ADA, 44AE — with tax audit coordination if required.

5.0 / 5.0

Overview

Individuals and HUFs earning income from business or profession file ITR-3. Those opting for simplified presumptive taxation file ITR-4 (Sugam): Section 44AD for business turnover up to Rs.3 crore (declare 8% / 6% as profit), Section 44ADA for professionals with receipts up to Rs.75 lakhs (declare 50% as profit), or Section 44AE for goods carriage operators.

For regular business taxpayers with turnover above Rs.1 crore (or Rs.10 crore if 95%+ receipts are digital) requiring tax audit under Section 44AB, ITR-3 must be filed with the audit report (Form 3CA/3CB-3CD) by October 31. MFiling prepares the complete business income computation, advises on the optimal presumptive vs. regular taxation choice, coordinates with CAs for tax audit, and files ITR-3/ITR-4 within the due date.

Due date: July 31 (no audit, ITR-4) | October 31 (tax audit, ITR-3). MFiling professional charges: from Rs.2,999 (ITR-4 presumptive) | Rs.4,999 (ITR-3 with accounts) | Rs.7,999 (ITR-3 with tax audit).

Key Benefits

Presumptive vs. Regular Tax Comparison
MFiling identifies whether presumptive taxation (44AD/44ADA) saves more tax than regular books-based filing.
No Books Required Under Presumptive
Section 44AD/44ADA eliminates the need to maintain books of accounts — significant compliance saving.
Tax Audit Coordination
MFiling coordinates the Section 44AB tax audit, Form 3CA/3CD preparation, and timely filing for audit cases.
All Business Deductions Claimed
Rent, depreciation, employee costs, business travel, professional fees — all legitimate deductions computed.
Advance Tax Planning
MFiling advises on quarterly advance tax payments (June/Sept/Dec/March) to avoid Section 234C interest.

Documents Required

Books of Accounts / Profit & Loss Account and Balance Sheet (for ITR-3)
Bank Statements for All Business Accounts for the Financial Year
Form 26AS and AIS for TDS Credit Verification
GST Returns (GSTR-1/3B) for Annual Turnover Reconciliation
Depreciation Schedule for Fixed Assets
Tax Audit Report (Form 3CA/3CB-3CD) if applicable

How it Works

Determine Filing Type (Day 1)

Assess whether presumptive (ITR-4) or regular (ITR-3) filing is more beneficial based on actual profit.

Compile Financial Statements (Day 1–5)

Prepare or review P&L and balance sheet, reconcile with bank statements and GST returns.

Compute Taxable Income (Day 3–5)

Calculate business income after all allowable deductions — verify depreciation, expenses, and disallowances.

Tax Audit (if applicable) (Week 2–4)

Coordinate Section 44AB audit with CA — prepare Form 3CD statements and upload audit report.

Calculate Tax Liability and Advance Tax (Day 5)

Compute tax, verify advance tax paid and TDS credits in 26AS.

File ITR-3 or ITR-4 on Income Tax Portal (Day 5–7)

Log in, select correct ITR form, fill all business schedules, and submit with DSC (if audit) or EVC.

E-Verify and Download Acknowledgement (Day 7)

Complete e-verification — ITR-V or e-verification acknowledgement downloaded and shared.

Frequently Asked Questions

What is the limit for presumptive taxation under Section 44AD?
Section 44AD applies to resident individuals, HUFs, and partnership firms engaged in business (excluding certain specified professions) with total turnover up to Rs.3 crore (if 95% of receipts are through digital modes) or Rs.2 crore (for mixed cash and digital). Under 44AD, the deemed profit is 8% of turnover (or 6% for digital receipts) — no books of accounts required, no tax audit. Declaring profit below these rates requires maintaining books and a tax audit.
Can a Section 44ADA professional opt out of presumptive taxation?
Yes, but with restrictions. A professional who has opted for Section 44ADA can declare profit below 50% of gross receipts (i.e., opt out) by maintaining books of accounts and getting a tax audit done. However, once a taxpayer opts out of presumptive taxation, they cannot opt back in for 5 subsequent assessment years. MFiling advises on the long-term tax implications before opting out of presumptive taxation.
Service Price
₹2,999
Starting price · GST extra
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Presumptive vs. Regular Tax Comparison
MFiling identifies whether presumptive taxation (44AD/44ADA) saves more tax than regular books-based filing.
No Books Required Under Presumptive
Section 44AD/44ADA eliminates the need to maintain books of accounts — significant compliance saving.
Tax Audit Coordination
MFiling coordinates the Section 44AB tax audit, Form 3CA/3CD preparation, and timely filing for audit cases.
All Business Deductions Claimed
Rent, depreciation, employee costs, business travel, professional fees — all legitimate deductions computed.
Advance Tax Planning
MFiling advises on quarterly advance tax payments (June/Sept/Dec/March) to avoid Section 234C interest.

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Service Price
₹2,999
Starting price · GST extra

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