Switch from ITR 4(u/s 44AD) to ITR 2

Income Tax Act 1961 ITR Filing
1

I was filling ITR 4( u/s 44AD) for last 5+ years as there was business income (investment activities under income code- 13010)

Now, i have no business income, i have income from: bank interest, LTCG/Stcg from shares and LTCG on sell of property , after setting off STCL on sell of shares, my LTCG on sell of property is Rs 7.1 lakhs only, which I have invested in REC Capital Gains Bonds

My total income will be within 12 lakhs ( including 7.1 lakhs LTCG on sale of property, which is already invested in REC Capital Gains Bonds)

Now, i am a senior citizen and have stopped all business activities. No F&O or intraday share trading.

Can I switch from ITR 4 to ITR 2?

Any issues with this? I understand that I can’t switch from ITR 2 to ITR-4 for next 5 years

Can I avail services of Quicko platform for ITR filing, if yes which plan, I have to opt

Thanks in Advance :folded_hands:

2

Hey @Ramesh_Saraf,

Yes, you can switch from ITR-4 to ITR-2 since you no longer have business income and have stopped business activities, intraday trading, and F&O trading.

There should not be any issue in your case. Your income sources like bank interest, capital gains from shares, and sale of property are reportable in ITR-2.

Also, the 5-year restriction generally applies when a person opts out of the presumptive taxation scheme under Section 44AD after declaring lower profits, not in a case where business income itself has stopped.

Of course, we’d be happy to help you. Based on your case, this plan would be the right fit for you: ITR for Investors, click here.

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