Ad free CAclubindia and daily updates on your mobile. Subscribe Now!

Suitable ITR for other income and nil filling

31 August 2020

Sir,
If income is from other sources and also income from very small business (not of sec 44 AD). And nil filing. Which ITR form should be opted. Earlier I used to file ITR 4S.

Please make me know how to deal with this.
Thanks and regards

Reply
Follow
Share

5 Replies

Sagar Patel (Tax and Business Consultant) (11611 Points)
Replied 31 August 2020

Earlier you filed ITR 4S...means adopt presumptive Taxation u/s 44AD...in query it's mentioned that "small business (not of sec 44 AD)."

What is your business activity..?

Upgrade to CAclubindia Pro. Subscribe Now!

Kumar Bishwajeet (Article) (68 Points)
Replied 31 August 2020

Business of insurance agency.

Sagar Patel (Tax and Business Consultant) (11611 Points)
Replied 31 August 2020

A person can not file return u/s 44AD for income of brokerage, Commission and any agency business..So, 44AD is not applicable.

If your Insurance agency income is Regular and also going to be increase/ continue in future years also, than its considered as business income and you can file ITR 3

But it's irregular and small in amount as compared to your other head income than you can consider that income as income from other sources and file ITR 1. (ITR 2 if also have any Capital Gain)