Trouble Filing Income Tax Return under Section 44ADA. Help appreciated!

Income Tax Income from Business or Profession
1

I successfully filed my taxes under 44ADA for AY 22-23. I want to file my tax for AY23-24 now. I have two major questions.

  1. For AY23-25, do I have to pay advance tax (100% of my total tax) by 15th March 2023 or 2024? Which year?
  2. If I have to pay it by 15th March 2023, I should go to the income tax website and pay advance tax for AY23-24. But I distinctly remember that for AY22-23, I could file my tax using the “File now” button where I could select ITR 4 and section ADA. Fill my income information and the website would calculate my tax for me. But this year I don’t have a file now button it only says “File Revised Return” on the main dashboard. Is it because it will update after March 15th or March 31st March 2023 (End of FY)

Cleartax has this to say.

Further, anyone opting for this scheme is not bound by the mandate of maintaining books of accounts too. While he is also liable to file his return by 31 July of the assessment year, he must file his return in ITR 4.

They say I have to file it by 31st July 2024. What am I missing? I’m very confused. Thank you for your time!

2

On further research I realised I misunderstood quite a few things.

Please correct me if I’m wrong!

Income tax filing and Advance payment are completely different things. You pay advance tax before 15th March of the financial year and then file your income tax returns in the Assessment year.

Okay it makes sense now. I will make the following assumptions for my timeline. Please let me know if I am correct.

  1. For my FY22-23 income, I should go to the income tax website and pay my estimated advanced tax for the income I earned between 1st April 2022 and 31st March 2023 under AY23-24. Because I’m eligible for 44ADA, I have the benefit of paying it all in one go before March 15th 2023 instead of paying it in instalments.

  2. Then before 31st July 2023, I will have to file my income tax return. Neutral case - I won’t have to pay anything when filing my ITR because my estimated advanced tax payment was correct. Worst case - I have to file any difference and pay some more. Best case, my advance tax payment was more and I get a refund.

Are the dates mentioned correct? Are my assumptions right? Thanks again for your time.

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A post was merged into an existing topic: Presumptive Taxation Scheme: Budget 2023