What Is the Section 44AD Turnover Limit for ITR-4?
For section 44AD, the current Income Tax Department FAQ states a ₹3 crore threshold where cash receipts do not exceed 5% of total gross receipts, and ₹2 crore otherwise, subject to statutory conditions.
Quick Answer
In practical terms, For section 44AD, the current Income Tax Department FAQ states a ₹3 crore threshold where cash receipts do not exceed 5% of total gross receipts, and ₹2 crore otherwise, subject to statutory conditions.
Two different limits
Section 44AD has a business turnover/gross-receipts threshold, while ITR-4 has a separate total-income ceiling of ₹50 lakh. Meeting one does not automatically establish eligibility for the other.
Cash-receipt condition
The Income Tax Department FAQ currently states ₹3 crore where cash receipts do not exceed 5% of total gross receipts, and ₹2 crore otherwise, subject to the applicable statutory conditions.
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