Applicability of section 44aa & non account case in itr-4

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Querist : Anonymous

Querist : Anonymous (Querist)

04 March 2016 Dear Sir

I want to file income tax return in form ITR-4. My gross receipt from business is Rs. 600000/- and Income is Rs. 284000/- for f.y. 2014-15. Whether Section 44AA is applicable to me ?? and can I file income tax return by showing in non account case in ITR-4 ???.

Please help in this matter.

Regards,
Sachin

CA Vap Patel

CA Vap Patel (Expert)
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04 March 2016 Yes Section 44AA is applicable to you. But since you are doing business, it is advisable that you opt for 44AD. In 44AD you just have to show 8% of turnover as your profit. so go for 44AD take 8% of 6 Lac = 48000 as profit and file ITR 4S.

Querist : Anonymous

Querist : Anonymous (Querist)

04 March 2016 Whether 44AD is applicable for all businesses ??? is there any exception ??

CA Vap Patel

CA Vap Patel (Expert)
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04 March 2016 The provision for presumptive taxation is applicable to all the businesses where the total turnover does not exceed Rs. 1cr and can claim the profits to be 8% of the turnover. However, following business have been notified to be excluded from application of Section 44AD.
1. A professional carrying any business specified under section 44AA (1)
2. Business in the nature of commission or brokerage
3. Business of agency services
4. Business of plying, hiring or leasing goods carriage as per section 44AE.

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