ITR-3 vs ITR-4 (44ADA) — which should I pick?

[rohitthink]

One of the most common questions we get from Indian freelancers: which ITR form should I file?

Short answer: it depends on your income and whether you want to deduct expenses.

ITR-4 (Presumptive taxation under Section 44ADA)

Use this if:

• Your gross professional income is under ₹75 lakh (FY 2025-26 limit)
• You'''re a freelancer, consultant, doctor, lawyer, architect, engineer, interior designer, or accountant
• You don'''t want the overhead of tracking every business expense
• You'''re okay declaring 50% of your gross receipts as profit

Under 44ADA, half your income is deemed to be profit regardless of actual expenses. You don'''t need books of account, audit, or expense receipts. Simple and fast.

ITR-3 (Regular business income)

Use this if:

• Your gross professional income is over ₹75 lakh
• Your actual business expenses are more than 50% of your income (e.g., you have high office rent, software subscriptions, travel)
• You have capital gains, F&O trading, or multiple income sources
• You maintain proper books of account

ITR-3 lets you deduct actual expenses but requires maintaining books and potentially tax audit (if turnover > ₹2 crore or profit < 6-8%).

Which saves more money?

FreeFile auto-computes tax under both forms, both regimes (old and new), and tells you which combination saves the most. Just upload your bank statements and it does the math.

Got a specific question about your situation? Reply below — I'''ll answer as best I can (disclaimer: I'''m a developer, not a CA, always double-check with a professional for complex cases).