ITR filing for small businesses and traders
You run a shop, a trading business or a small manufacturing unit.
Form: ITR-4 under section 44AD, or ITR-3 where books are maintained
What is included
- Presumptive computation under section 44AD, at 6% on digital receipts and 8% on cash
- Turnover reconciled against your GST returns so the two do not contradict each other
- A check on whether you are within the ₹2 crore or ₹3 crore limit
- Advance tax position reviewed for the year ahead
- Draft computation sent to you for approval before filing
- Filed acknowledgement (ITR-V) delivered to you
What we need from you
Send what you have. If something on this list is missing we will tell you which item it is, rather than leaving you to work it out.
- Turnover for the year, split between cash and banking-channel receipts
- GST returns filed during the year, if registered
- Bank statements for all business accounts
- PAN and Aadhaar
- Details of any partners, if a firm
- Loan statements where interest is being claimed
The split between cash and digital receipts changes your tax, and most people never record it
Section 44AD presumes 8% of turnover as income — but only 6% on receipts that come through banking channels. On a ₹50 lakh turnover that difference is ₹1,00,000 of declared income, and the tax on it. Businesses that take most payments by UPI or bank transfer are entitled to the lower rate and routinely do not claim it, because they never split the figure. Separately, the enhanced ₹3 crore turnover limit is available only where cash receipts stay within 5% of turnover. Both of these turn on a number you can only produce if someone asks for it. We ask.
How it works
- 1 Send your documents
WhatsApp them, email them, or walk into the office. We will tell you exactly what is missing rather than leaving you to guess.
- 2 We review and compute
We reconcile everything against AIS and Form 26AS, and calculate both tax regimes so you file under the lower one.
- 3 You approve the computation
You get the draft in plain language, with the figures explained. Nothing is filed until you say yes.
- 4 We file and send the acknowledgement
Filed within 24 to 48 hours of your approval, with the ITR-V acknowledgement delivered to you.
Questions we get asked
My GST turnover and my ITR turnover are different. Is that a problem?
It is one of the most common triggers for a notice. The two figures can legitimately differ, but the difference must be explainable. We reconcile them before filing.
Can a partnership firm use section 44AD?
A partnership firm can. An LLP cannot. Nor can commission agents, brokers or agency businesses.
What if I declare less than 8%?
You may, but it requires books and a tax audit, and it locks you out of 44AD for the following five years. Rarely worth it unless the loss is real and substantial.
Ready when you are
Send your documents on WhatsApp and we will tell you what is missing and what it will cost, before any work starts.