44ADA & ITR3

[Vikram Mundan]

A medical doctor (covered under 44AA(1) wishes to use 44ADA in ITR3.

ITR3 is required because there is short term & long term capital gain from mutual fund.

I am told that 44ADA overrides provisions only section 28 to section 43C & does not override 44AA (3) & rule 6F although 44AA(1) is mentioned in 44ADA.

Due to this reason I'm told, 44AA(3) & rule 6F are applicable in ITR3 & so 44AA has to be followed in ITR3 & 44ADA cannot be used in ITR3.

Question is, if a doctor can use 44ADA in ITR4, then why can he not use 44ADA in ITR3?

[Nandan Khambete]

ITR form framed by CBDT cannot decide benefits under Income Tax Act. You can claim 44ADA in ITR 3.

AI Summary

Presumptive taxation under section 44ADA can be claimed in ITR 3 despite form designation; form doesn't deny benefit. A medical practitioner eligible under section 44AA(1) may claim the presumptive taxation benefit of 44ADA in ITR 3 even where capital gains require filing ITR 3; the ITR form framed by the tax administration does not determine entitlement to statutory benefits, and therefore the form's classification cannot be relied on to deny the claim.