New itr3 for ay2017-18 for professional, proprietorship

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

06 December 2017 I am a professional with a proprietorship business in Management and Software.
1. Have Consultancy income and income from other Sources [FD interest, Rental]
2. Have used ITR4 in the past few years with Balance sheet, etc but no Audit
3. Unfortunately, am filing AY2017-18 income tax returns now in Dec 2017.
4. My profits are lower than 50% of Consultancy income.
5. Have paid all the required taxes during FY2016-17 as advance tax.

I need clarification about:
1. Can I use the New ITR3 for AY2017-18 tax returns ?
2. Under the section 44AB as before ?.. as profits are lower than 50% of Consultancy income.
3. Or do I have to use the 44ADA option ?
4. Is Audit compulsory in this case and what is the procedure for the same ? [considering late filing]
5. Is there a way to get accurate info on this from IT dept ?
Regards and appreciate it.

Can I use

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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07 December 2017 1 You can file ITR 3.
2 Under section 44AB as profit less than 50%.
3 You can use 44ADA option and declare 50% profit tax audit not applicable.
4 Audit compulsory if you declare less than 50% profit.
5 Read the provisions of 44AB and 44ADA Income tax department will not help you.
You can rely on this information.

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Querist : Anonymous

Querist : Anonymous (Querist)

07 December 2017 Sir, Thank you very much for the clarification.
Pl clarify:
1. As it is now December, beyond Nov 7th deadline, can I still file ITR-3 with or without Audit report ?
2. Will IT dept accept it ? Will there be any penalty for late submission ?
Regards.

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Bhaskaran Chackrapani Warrier

Bhaskaran Chackrapani Warrier (Expert)
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07 December 2017 1. ITR-3 is the prescribed form

2.3.and 4. Nature of your profession/qualification to be known

5. Meet the PRO of your jurisdiction.