Which ITR for Section 44AD Business Income?
For an eligible resident individual, HUF or firm using section 44AD, ITR-4 may be available if all ITR-4 conditions are satisfied. Otherwise, ITR-3 may apply.
Quick Answer
In practical terms, For an eligible resident individual, HUF or firm using section 44AD, ITR-4 may be available if all ITR-4 conditions are satisfied. Otherwise, ITR-3 may apply.
44AD turnover limit
The Income Tax Department’s current FAQ states a section 44AD turnover threshold of ₹3 crore where cash receipts do not exceed 5% of total gross receipts, and ₹2 crore otherwise, subject to the statutory conditions.
ITR-4 eligibility is a separate check
Even where section 44AD can be used, check ITR-4 exclusions such as non-resident or RNOR status, total income above ₹50 lakh, certain capital gains, directorship and unlisted equity holdings.
Related EZTax Questions
- Which ITR Form Should I File for AY 2026-27?
- Who Can File ITR-3 for AY 2026-27?
- Who Can File ITR-4 (Sugam) for AY 2026-27?
- Which ITR Should a Freelancer File?
