🧾 What is ITR-3 / ITR-4 Filing?
If you’re a self-employed individual, sole proprietor, or professional, and your income comes from business or profession, you must file ITR using Form ITR-3 or ITR-4 depending on your tax structure.
- ITR-4 is for presumptive taxation under Section 44AD, 44ADA, or 44AE
- ITR-3 is for businesses opting for regular books of accounts
Timely and correct filing helps:
- Maintain legal tax compliance
- Avoid penalties and notices
- Ensure proper credit for TDS
- Build financial history for funding
✅ Who Should File ITR-3/ITR-4?
| Profile | ITR Type |
|---|---|
| Sole proprietors (business/trading) | ITR-3 or ITR-4 |
| Freelancers/consultants | ITR-3 or ITR-4 |
| Doctors, lawyers, architects | ITR-3 or ITR-4 |
| Individuals with foreign assets/income | ITR-3 only |
| Transport operators | ITR-4 (44AE) |
📑 Documents Required
- PAN & Aadhaar
- Business registration or trade proof
- Bank statements (all business accounts)
- Books of accounts (if any)
- Sales and purchase bills
- TDS certificates (Form 16A/26AS)
- Expenses & depreciation schedules
- Investment proofs
- Loan statements (if applicable)
🛠️ Services Included
- Consultation to choose ITR-3 or ITR-4
- Computation of business income and deductions
- Balance sheet and P&L preparation (if applicable)
- Reconciliation of Form 26AS with books
- Filing of ITR with EVC or DSC
- Assistance in refund tracking and rectification
- Presumptive taxation planning (if opted)
📋 Filing Process & Timeline
| Step | Task | Timeline |
|---|---|---|
| 1️⃣ | Document collection and business review | Day 1–2 |
| 2️⃣ | Computation and ITR draft | Day 3 |
| 3️⃣ | Filing and verification | Day 3–4 |
| 4️⃣ | Final ITR acknowledgment and download | Day 5 |
🕐 Total Time: 4–5 Working Days
📌 Key Differences: ITR-3 vs ITR-4
| Criteria | ITR-3 | ITR-4 |
|---|---|---|
| Books of accounts | Required | Not required |
| Turnover limit | Any | Up to ₹2 crore (business), ₹50 lakh (profession) |
| Presumptive tax rate | Not applicable | 6%/8% (business), 50% (profession) |
| Audit applicability | Yes (if turnover > ₹1 Cr) | No, if presumptive |
💡 Why Choose SITPakz Solution (SSPL)?
- ✅ Expert tax consultants & CA collaboration
- 📊 Assistance with both regular and presumptive filing
- 🧾 Proper deduction mapping & compliance review
- 💼 GST-linked income matching & advice
- 🖥️ Year-round advisory for business tax matters
💬 Frequently Asked Questions (FAQs)
Q. Can I switch between ITR-4 and ITR-3?
➡️ Yes, but switching from presumptive (ITR-4) to regular (ITR-3) has implications. Consult before switching.
Q. Do I need an audit?
➡️ Audit is required if turnover exceeds ₹1 crore or presumptive turnover limit is crossed without opting for presumptive scheme.
Q. Can I file returns without books?
➡️ Under presumptive taxation (ITR-4), you can file without maintaining books.
Q. What are the penalties for non-filing?
➡️ Late filing fee of ₹1,000 to ₹5,000 under Sec 234F. Also, interest under Sec 234A/B/C.
