I earned an STCG of around ₹12 this Financial Year. Should I continue filing ITR-4 to avail 44ADA or file ITR-3 to report this STCG?

[SSV]

I feel depressed now for the mistake I made

Believe me, it’s nothing to be depressed about..
I know you want to be perfect..

I was also like you before.. but now changed..

Life is full of imperfections..

This is the problem with software guys..

Nothing happens.. worse thing they will ask you to pay the tax on 12 ..
I don’t think the system will pick this up.. even if it picks it up they will ask you why. You have the answer and then they will send you some demand notice .. you just pay that..
As simple as that…
Life is more than this fukcin .. IT compliance
People are generally too scared of IT in India
Actually unless we do planned financial crime .nothing to be scared of..

Have a nice dinner and enjoy life…
File your itr 4..
Okay don’t for get to like my post !!! 😉 😉 😉

Cheers big fella ( as they say in Oz)

 

[SSV]

Thanks for the info.


That's because I won't be able to avail 44ADA if I file ITR-3, and would have to pay more tax as a result.

Also, I don't have books of accounts or any record either, because technically I'm working for a SINGLE off-shore company only as a Software Developer.

I've heard of someone who paid a few lakhs as income tax, but still got notice from the Income Tax Department, because his calculations were off by some 70 rupees or something.

Since the IT department systems are automated now, so if I miss the STCG income of ₹12 and miss the calculation or even if I fill it in another head, they might not accept my ITR.

All this may be true..
just file itr 4 and pay the demand notice next year,
It won’t be big money

 

[CosmicCat]

Believe me, it’s nothing to be depressed about..
I know you want to be perfect..

I was also like you before.. but now changed..

Life is full of imperfections..

This is the problem with software guys..

Nothing happens.. worse thing they will ask you to pay the tax on 12 ..
I don’t think the system will pick this up.. even if it picks it up they will ask you why. You have the answer and then they will send you some demand notice .. you just pay that..
As simple as that…
Life is more than this fukcin .. IT compliance
People are generally too scared of IT in India
Actually unless we do planned financial crime .nothing to be scared of..

Have a nice dinner and enjoy life…
File your itr 4..
Okay don’t for get to like my post !!! 😉 😉 😉

Cheers big fella ( as they say in Oz)

Thank you so much for the motivation. Really appreciate it.

BTW, in case of any defect, will they ask me to re-submit ITR with the updated info? Or I should just pay the fine and be done with it? As this is new for me, so I don't have any info about it.

 

[xross]

I do see 44ADA in ITR 3, as a presumptive income.

https://incometaxindia.gov.in/forms/income-tax%20rules/2023/itr3_english.pdf

 

[saucy]

I earned around ₹12 Short-Term Capital Gains (STCG) this financial year (FY 2023-24) by closing several debt mutual funds, which I had opened this financial year only just for exploration, as I got started with Mutual Funds recently. Their total purchase amount was around ₹5,000 only.

I have attached a picture here of how it is reported in my AIS.

I have been filing ITR-4 all these years as I'm a Self-Employed Professional (Software Engineer) and availed 44ADA each time.

AFAIK, ITR-4 doesn't have any provision to mention capital gains, because I have been filing my taxes myself all these years, and never noticed the option to mention capital gains.

So, should I file ITR-3 by mentioning this ~₹12 STCG? Or continue filing ITR-4 (To avail 44ADA) and exclude this STCG?

As I don't have any CA to seek guidance from nearby me, so can please anybody help me out with this query? I would really appreciate your help.

Karlo itr 4 me hi
You may infact ignore it as well as it's under 100 (I'm told there's a threshold)

If there's something unacceptable, the IT team will intimate. You can make appropriate changes then

 

[SSV]

Thank you so much for the motivation. Really appreciate it.

BTW, in case of any defect, will they ask me to re-submit ITR with the updated info? Or I should just pay the fine and be done with it? As this is new for me, so I don't have any info about it.

They generally serve notice. You explain it. if they are not satisfied . then they will serve you demand notice asking to you to pay the tax

 

[rp0703]

Thanks for the info.


That's because I won't be able to avail 44ADA if I file ITR-3, and would have to pay more tax as a result.

Also, I don't have books of accounts or any record either, because technically I'm working for a SINGLE off-shore company only as a Software Developer.

I've heard of someone who paid a few lakhs as income tax, but still got notice from the Income Tax Department, because his calculations were off by some 70 rupees or something.

Since the IT department systems are automated now, so if I miss the STCG income of ₹12 and miss the calculation or even if I fill it in another head, they might not accept my ITR.

You can file itr 3 and still avail the benefit of presumptive taxation i.e 44ad.

 

[xross]

You can file itr 3 and still avail the benefit of presumptive taxation i.e 44ad.

Yes. I have been filing ITR 4, but this year i have ~500 STGC, so i will doing ITR3. It has 44ADA. It is just very long, so better to get a CA.

 

[Vaastav]

That's because I won't be able to avail 44ADA if I file ITR-3, and would have to pay more tax as a result.

Wrong Info, Both 44AD and 44ADA are under presumptive income and can be filled in ITR-3

 

[CosmicCat]

Wrong Info, Both 44AD and 44ADA are under presumptive income and can be filled in ITR-3

I did notice the component "44ADA" in ITR-3. But is there any catch? Like if I'm filing ITR-3 and filing my income under the section 44ADA, I would have to maintain my records?

I don't know why the Income Tax department has put special emphasis on "44ADA" for ITR-4 in their website:


Really confusing stuff. No wonder why majority of Indians, who are Self-Employed, skip income tax.

 

[Vaastav]

I did notice the component "44ADA" in ITR-3. But is there any catch? Like if I'm filing ITR-3 and filing my income under the section 44ADA, I would have to maintain my records?

No Changing ITR from 4 to 3 Doesn't Change what Section 44ADA is. So No Account books need to be maintained.

In Part A - General it'll ask this :-

(a1) Are you liable to maintain accounts as per section 44AA? (Tick) Yes/No Yes

Select - No

(a2) Whether assessee is declaring income only under section 44AE/44B/44BB/44AD/44ADA/44BBA Yes/No

Select - Yes

Now in PART A-BS It'll ask :-

6 - In case where regular books of account of business or profession are not maintained -

Fill all their subsection 6a,6b,6c,6d and enter 0 If there isn't any details available

Now Finally in PART A - P & L - PROFIT AND LOSS

Fill The 44ADA Details. I Think it's Number 62 for 44ADA

If all your filled details are correct than in computation of income it'll show like this :-

Profit before tax as per profit and loss account ((item 53 ,61(ii)), 62(ii), 63(ii), 64(iii) and
65(iv) of P&L)(in case of no account case)

It'll show your Amount (62(ii) Section For You)

 

[CosmicCat]

No Changing ITR from 4 to 3 Doesn't Change what Section 44ADA is. So No Account books need to be maintained.

In Part A - General it'll ask this :-

(a1) Are you liable to maintain accounts as per section 44AA? (Tick) Yes/No Yes

Select - No

(a2) Whether assessee is declaring income only under section 44AE/44B/44BB/44AD/44ADA/44BBA Yes/No

Select - Yes

Now in PART A-BS It'll ask :-

6 - In case where regular books of account of business or profession are not maintained -

Fill all their subsection 6a,6b,6c,6d and enter 0 If there isn't any details available

Now Finally in PART A - P & L - PROFIT AND LOSS

Fill The 44ADA Details. I Think it's Number 62 for 44ADA

If all your filled details are correct than in computation of income it'll show like this :-

Profit before tax as per profit and loss account ((item 53 ,61(ii)), 62(ii), 63(ii), 64(iii) and
65(iv) of P&L)(in case of no account case)

It'll show your Amount (62(ii) Section For You)

Thank you so much for the detailed response! Really appreciate your help. 🙏😊

 

[moneyMaker]

I use software to file income tax returns and

Which? send affiliate link!

 

[Slayer]

Life is more than this fukcin .. IT compliance
People are generally too scared of IT in India
Actually unless we do planned financial crime .nothing to be scared of..

Factos . .

 

[rp0703]

Which? send affiliate link!

Genius Software by Saginfotech. I don't think it has affiliate link. It's used mostly by CA's.

 

[pothi]

@CosmicCat I hope the following article might clarify a few things for your use case...

Taxation for Investors – Varsity by Zerodha

This topic explains how long term and short term capital gains/losses are determined based on the holding period of the investment and their applicable tax rates. We also studied how one can reduce LTCG tax liability through indexation.

zerodha.com

Specifically, here's the direct quote from the article...

Finally, the income tax department has brought in clarity by allowing an individual to decide on his own to either show his stock investments as capital gains or as a business income (trading) irrespective of the period of holding the listed shares and securities. Whatever is the stance once taken, the taxpayer will have to continue with the same in the subsequent years.

 

[Riya]

I earned around ₹12 Short-Term Capital Gains (STCG) this financial year (FY 2023-24) by closing several debt mutual funds, which I had opened this financial year only just for exploration, as I got started with Mutual Funds recently. Their total purchase amount was around ₹5,000 only.

I have attached a picture here of how it is reported in my AIS.

I have been filing ITR-4 all these years as I'm a Self-Employed Professional (Software Engineer) and availed 44ADA each time.

AFAIK, ITR-4 doesn't have any provision to mention capital gains, because I have been filing my taxes myself all these years, and never noticed the option to mention capital gains.

So, should I file ITR-3 by mentioning this ~₹12 STCG? Or continue filing ITR-4 (To avail 44ADA) and exclude this STCG?

As I don't have any CA to seek guidance from nearby me, so can please anybody help me out with this query? I would really appreciate your help.

OMG!!! Cap gain of Rs 12... Not to worry... If long term then totally not to worry

 

[CosmicCat]

OMG!!! Cap gain of Rs 12... Not to worry... If long term then totally not to worry

I've come across cases where individuals received notices from the Income Tax Department for falling short on their income tax payments by just a few rupees. Which is why I am worried.

 

[Riya]

I've come across cases where individuals received notices from the Income Tax Department for falling short on their income tax payments by just a few rupees. Which is why I am worried.

Is it LTCG or STCG?

 

[mrbean]

No Changing ITR from 4 to 3 Doesn't Change what Section 44ADA is. So No Account books need to be maintained.

In Part A - General it'll ask this :-

(a1) Are you liable to maintain accounts as per section 44AA? (Tick) Yes/No Yes

Select - No

(a2) Whether assessee is declaring income only under section 44AE/44B/44BB/44AD/44ADA/44BBA Yes/No

Select - Yes

Now in PART A-BS It'll ask :-

6 - In case where regular books of account of business or profession are not maintained -

Fill all their subsection 6a,6b,6c,6d and enter 0 If there isn't any details available

Now Finally in PART A - P & L - PROFIT AND LOSS

Fill The 44ADA Details. I Think it's Number 62 for 44ADA

If all your filled details are correct than in computation of income it'll show like this :-

Profit before tax as per profit and loss account ((item 53 ,61(ii)), 62(ii), 63(ii), 64(iii) and
65(iv) of P&L)(in case of no account case)

It'll show your Amount (62(ii) Section For You)

Similiar to my issue.

Last two years I have no trade income only I have salary and business income.

For the latest ITR I have trade income(share market ,mutual fund)but I am confused about the Book of record.

Since last two years I have filed ITR4 with presumptive income due to this no book of record is available

Shall I able to use Presumptive income on ITR 3 also.
Confused about this 🙁