What we do
Our work in this practice group is structured around the records, deadlines, and decisions involved:
- Statutory exemption from maintaining exhaustive audited books of account where presumptive tax is chosen.
- Accurate evaluation of eligibility under Sections 44AD, 44ADA, and 44AE.
- Comprehensive reconciliation of Form 26AS, AIS, and TIS with bank receipts.
- Minimization of interest liabilities under Sections 234A, 234B, and 234C.
- Professional guidance on transitioning between regular and presumptive tax regimes.
- Flawless filing of ITR-3 or ITR-4 before the statutory due date (31st July).
- Peace of mind with complete audit trail and notice representation support.
How the engagement works
Non-audit business and professional returns must be filed on or before 31st July of the assessment year under Section 139(1). Under presumptive schemes, eligible taxpayers declare a prescribed percentage (e.g. 6% or 8% of turnover under 44AD, or 50% of gross receipts under 44ADA) as taxable profit. If declared profits are lower than the prescribed limits and total income exceeds the basic exemption limit, maintenance of books under Section 44AA and tax audit under Section 44AB become mandatory. Late filing attracts fees under Section 234F up to ₹5,000.
Scenario 1: A software consultant, doctor, interior designer, or lawyer earning gross receipts up to ₹75 Lakh opting for 50% presumptive taxation under Section 44ADA on Form ITR-4.
Scenario 2: A retail shopkeeper, wholesale trader, or e-commerce reseller with annual turnover up to ₹3 Crore opting for 6% digital / 8% cash turnover profit under Section 44AD.
Scenario 3: A professional services firm or manufacturing proprietor maintaining simple accounts and filing ITR-3 without crossing the audit threshold.
Scenario 4: A business owner receiving contract payments subject to 1% or 2% TDS under Section 194C, claiming legitimate tax refunds via non-audit filing.
Scenario 5: A proprietor transitioning out of the presumptive regime and requiring evaluation of Section 44AD(4) 5-year lock-in conditions.
Presumptive vs Normal Evaluation
We analyze your turnover, digital receipt ratios, and actual profit margins to determine whether presumptive taxation (44AD/44ADA) or regular ITR-3 filing delivers superior tax savings and lower scrutiny risk.
26AS, AIS & TIS Reconciliation
We systematically reconcile your gross receipts and bank credits with the Income Tax Department’s Annual Information Statement (AIS) and 26AS to eliminate revenue mismatch notices.
Deduction & Tax Computation
We calculate eligible Chapter VI-A deductions, set off brought-forward losses where permissible, compute advance tax liability, and verify self-assessment challans.
ITR-3 / ITR-4 Electronic Filing
We prepare the XML/JSON schema, upload the finalized return on the e-filing portal, verify submission using Aadhaar OTP / DSC, and provide client acknowledgments.
Step-by-step process
Step 1: Financial & Bank Data Collection
You provide bank statements, sales/turnover summaries, Form 26AS, AIS, and previous year ITR records for our preliminary review.
Step 2: Eligibility Check & Tax Computation
We examine threshold limits, digital transaction proportions (for the 6% rate), calculate net tax liability, and prepare a computation summary for your sign-off.
Step 3: Return Preparation & Client Verification
We populate the designated ITR-3 or ITR-4 schema and share the draft computation for client review and verification.
Step 4: Portal Filing & E-Verification
Upon approval, we submit the return on the Income Tax portal, complete e-verification, and deliver the official ITR-V acknowledgment and computation docket.
Key deliverables & outputs
General questions
01What is the turnover limit for presumptive taxation under Section 44AD?
The threshold limit is ₹2 Crore for businesses. However, if aggregate cash receipts during the financial year do not exceed 5% of total turnover, the enhanced limit of ₹3 Crore applies. Profits are declared at 6% for digital/banking turnover and 8% for non-digital turnover.
02Which professionals are eligible to file under Section 44ADA?
Specified professionals including engineers, architects, lawyers, medical practitioners, chartered accountants, technical consultants, and interior designers whose gross receipts do not exceed ₹50 Lakh (or ₹75 Lakh if cash receipts do not exceed 5%) can declare 50% or more as profit on Form ITR-4.
03Do I need to maintain accounting books if I opt for Section 44AD or 44ADA?
No. Taxpayers opting for presumptive taxation are relieved from the requirement of maintaining detailed books of account under Section 44AA and undergoing a tax audit under Section 44AB.
04What is the due date for filing non-audit business returns?
The statutory due date for non-audit individual, professional, and business taxpayers is 31st July following the end of the financial year.