sir
1.individual is a commission agent ,whose turnover is 3crores,but commission income is just 8 lakhs only, and his current account bank statement reflects credits of 2.8 crores .my question is
a)which itr form should be filed itr-4 or itr-3? ( for past 4 years filing itr-4 only with just turnover of 8- 14 lakhs).
b) if itr-3 is applied then tax audit is compulsory or not?
1. According to sec 44AD(6), any person who is earning income in the nature of commission or brokerage will not be eligible for availing the scheme under this act.
2. As per sec 44AB if an assessee's gross receipts or T.O of a business exceeds Rs. 1 crore during the year then tax audit will be mandatory.
3. Since your Commission income is only Rs. 8 lakhs and I presume the balance T.O barring commission income comes to Rs. 2.92 crores or anywhere close to that which is more than Rs. 2 crores. As per sec 44AD only if a person's T.O is below Rs. 2 crores presumptive taxation scheme u/s 44AD can opted. And only for the person who is paying tax u/s 44AD can file ITR-4.
4. In a nutshell considerating all the above points, ITR-3 can be utilized for filing your IT return.
Please correct me if the above solution has an alternative view.
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