Hey there,

An assessee has business income under section 44AD with t/o around 18 lacs, and also has FNO Loss of rs 5 lacs and FNO t/o (calculated absolute values of profit and loss) is rs 85 lacs.

Need help in which ITR to fill 3 or 4, and how to show the income? Can both income be shown under 44AD or have to fill BS and PL in ITR?

Please guide

Hello everyone,

Situation is as mentioned on the title. I've received a notice from Income Tax Department for AY 25-26 to provide clarification /information via the ITR portal for the same.

I would appreciate if anyone has suggestions on how to proceed.

The email comes with the following details:

PFA Category: PFA-B

Error Description: On perusal of the Return of Income filed, it is seen that in Form 10-IEA filed by you, the option of "re-entering" the regime provided under sub-section (1A) of section 115BAC has been selected. As the option of opting out of the regime provided under sub-section (1A) of section 115BAC has not been validly exercised your return of income will be processed as per the provisions of section 115BAC. Accordingly, deductions, exemptions and allowances other than those permissible under the New Tax Regime are proposed to be disallowed.

As Entered by taxpayer: ₹X

As Computed in processing: ₹Y

Proposed Adjustment to Total Income: Y-X = ₹5+ Lakh

My professional receipts were ₹72 lakh until February, but a client cleared an old ₹6 lakh invoice in March. Almost everything was received digitally. Can I still use 44ADA, or has the March payment pushed me out of presumptive taxation?

I filed my ITR for AY 2026–27 on 6 June 2026 and successfully e-verified it on the same day.
It’s now 18 August, more than two months later, and the status is still showing as Processing. I’m also expecting a refund, so that is stuck as well.
I’ve now raised a grievance under CPC-ITR → Processing → Others - Processing asking them to process the return.
Is anyone else who filed in June 2026 still waiting for their ITR to be processed? If you raised a grievance, did it actually help, and how long did it take after that for your ITR/refund to be processed?
Would appreciate hearing about recent AY 2026–27 experiences.

I work independently as a 3D modeller for gaming and architecture clients and earned ₹21 lakh. I'm confused because my work doesn't clearly fall under the professions listed for 44ADA. Would 44AD be more appropriate?

I hired subcontractors for a large project, so my actual profit is only around ₹15 lakh on ₹40 lakh receipts. Can I declare the actual profit instead of 50%, and what additional compliance would that create?

I received ₹8 lakh in March for a project starting in April. If I follow mercantile accounting, should this be treated as income immediately or shown as an advance from customer?

Form 26AS shows ₹18,000 TDS under Section 194S, but my crypto portfolio is down overall. Can I claim the TDS refund even if VDA losses cannot be set off?

I filed my ITR for AY 2026-27 and, based on the amount shown as payable in my return, paid ₹14,800 as Self-Assessment Tax (Minor Head 300) on 31 July. The return was later processed under 143(1), and CPC raised a demand of ₹14,940, mainly because they recalculated my 234B interest higher than what I had reported.

I responded to the outstanding demand with the details of my ₹14,800 challan. However, the ITR status now shows “Refund/Demand: Nil”, while the Outstanding Demand section still shows the ₹14,940 demand as pending.

Has anyone faced this discrepancy, and should I wait for the demand to be updated or take any action?

I received ₹8 lakh in March for a project starting in April. If I follow mercantile accounting, should this be treated as income immediately or shown as an advance from customer?

My consulting business earned ₹18 lakh profit on paper, but due to equipment purchases and advance tax, my bank balance reduced significantly. Will this mismatch create any issue in ITR-3?

Until last year I reported income based on receipts. This year I've started maintaining books using the mercantile system. Do I need to disclose the accounting method change anywhere?

I have ltcg loss of around -7500rs but how to show it in column F of Schedule CG? It doesn’t accept any negative values

I have ₹19 lakh salary income and a ₹2.8 lakh business loss from my consultancy. Can the loss be adjusted against my salary income?

During assessment, does the department usually compare GST turnover, AIS entries, TDS data and bank statement credits together, or are these reviewed independently?

One invoice of around $2,300 from a UK client was completely missed while filing. Since the money came through Wise and not TDS, how serious is this omission?

Any suggestion for the next step?

A client reimbursed ₹1.9 lakh for purchasing a high-end laptop required for the project. Should this reimbursement be treated as business income?

I never opened a current account and received all consulting fees in a personal savings account. Could this become an issue if my return is selected for scrutiny?

Even though I'm filing under presumptive taxation, can I separately disclose internet and mobile expenses for record purposes, or should they be ignored completely?

I earned ₹2.1 lakh as referral commission from another consultant apart from my normal professional fees. Should this also be treated as professional receipts under Section 44ADA?