Answer

1. F

   Facts

   ITR-3 is for individuals and HUFs with income from business or profession that is not offered under the presumptive schemes, or where ITR-4 conditions are not met. F&O traders, intraday traders, partners in firms and professionals keeping books usually file ITR-3.

2. P

   Provisions and law

   • Sec 28, Income-tax Act 1961 (now Sec 26, Income-tax Act 2025)Profits and gains of business or profession are taxable
   • Sec 44AD, Income-tax Act 1961 (now Sec 58, Income-tax Act 2025)Presumptive business income at 6% of digital or 8% of other turnover, up to ₹2 crore (₹3 crore if cash receipts are within 5%)
   • Sec 139(1), Income-tax Act 1961 (now Sec 263(1), Income-tax Act 2025)Return due date: 31 July for most individuals, 31 August for non-audit business or profession, 31 October for audit cases
3. A

   Analysis

   ITR-4 is only for residents with total income up to ₹50 lakh using Sec 44AD, 44ADA or 44AE (now Sec 58), without capital gains beyond small listed equity gains, foreign assets or losses to carry forward. Example: a salaried person with a ₹1.2 lakh F&O loss must use ITR-3, because ITR-4 cannot show a loss to carry forward. A partner earning remuneration from a firm also uses ITR-3.

4. C

   Conclusion

   1. 1List all income heads you have
   2. 2Check ITR-4 conditions: residency, ₹50 lakh limit, presumptive income only
   3. 3If any condition fails, use ITR-3
   4. 4Collect books or broker P&L statements
   5. 5File with the right form

General guidance from TaxSavvy’s library of money processes. Laws change; your Savvy confirms the answer on your exact case before anything is filed.