• No account case in ITR 3

IF my income is less than 2.5 lakh and turnover less than 25 lakhs. Dont have books of accounts under 44AA. Then in no account case can i show income less than 8%. As i earn only 30000rs from business. I am not under 44AD and don't want to right now. Please help me with the clear answer
Asked 2 years ago in Income Tax

No I don't think that can be done.

If you opt for 44AD then it can work otherwise not.

Even if you are not maintaining proper books of accounts and since you want to show profit below 8% it is advisable to fill full P&L rather than using no account case or it can lead to a defective notice from Income Tax Department.

 

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Naman Maloo
CA, Jaipur
4292 Answers
101 Consultations

If the total income including 8% of 25 lacs is upto Rs.5 lacs then it is better to avail 44AD.

Vivek Kumar Arora
CA, Delhi
4951 Answers
1105 Consultations

Yes, you can show a lower profit, but you must fill out your balance sheet and P/L using ITR 3. 

You have to select 44AA as yes otherwise, your return will be marked as defective. 

Further, even if you can show more than 8% of profit using 44AD provision(No accounts case), your business profit will be around Rs.1 Lakhs. If after adding all sources of your income, your total income is below Rs. 5,00,000, you will not be liable to pay any tax. 

 

Puja Sharma
CA, Jaipur
66 Answers

No you cannot show profit less than 8%.

Ruchi Goel Anchal
CA, Gurgaon
525 Answers
16 Consultations

You will have to fill balance sheet and P/L if you show lower than 8% else your return can be treated as defective return. If your total income is less than Rs. 2.5Lakh, you can choose to not opt for 44AD. Else, you cannot show below 8% profit. 

You can also book a phone consultation for further discussion.

 

 

Thank you.

Prerna Peshori
CA, Pune
199 Answers
12 Consultations

Use 44AD and show atleast 8% profit or fill full ITR 

Naman Maloo
CA, Jaipur
4292 Answers
101 Consultations

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