The assessee can file a tax return on a presumptive basis under Section 44ADA if he/she is an assessee covered under “Specified Profession”. However, the total gross receipts from profession shall not exceed 50 lakhs in a financial year.

ITR4 is to be used by an individual or HUF, who is resident other than not ordinarily resident, or a Firm (other than LLP) which is a resident, whose total income
for the assessment year, 2019-20 does not exceed Rs.50 lakh.

  • One can also have income from Salary Income from One House Property (Self-occupied/Rental with or Without Home Loan) and Income from Other Sources along with Presumptive Income. One Cannot have a capital gain(sale of Stocks/Mutual Funds/Property/Jewellery). (In that case use ITR3)
  • The benefit by showing income under presumptive basis is that one is not required to maintain books of account, neither he is required to get account audited
  • The assessee above has to show at least 50% of the gross receipts from the profession. If a person is going for the presumptive basis of section 44ADA, income will be @ 50% of the total gross receipts of the profession. However, one can declare income higher than 50%. However, if the assessee wants to show the income less than above then he can do so subject to maintenance of books of account and audit
  • You are not allowed to deduct any business expenses against the income.
  • You have to pay 100% Advance Tax by 15th March for such a business. No need to comply with the requirement of quarterly instalments due dates (June, Sep, Dec) of advance tax.
  • Business Code: Use Business Code 16005 for Engineering and Technology Consultancy.