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I.t.r 4 (Income Tax)

This query is : Resolved

( Author )
30 May 2012

PLEASE HELP ME TO THE FOLLOWING, WHILE FILING THE I.T.R. 4
1. ARE YOU LIABLE TO MAINTAIN ACCOUNTS AS PER SECTION 44AA ? OR WHEN APPLICABLE U/S 44AA

2. METHOD OF ACCOUNTING EMPLOYED IN THE PREVIOUS YEAR OR WHAT IS MERCANTILE / CASH

PLEASE HELP ME

Siddhartha Bhardwaj

( Expert )
30 May 2012

1. Section 44AA requires an assessee to maintain books of accounts in the following cases:

(a) Person carrying on legal, medical, engineering or architectural profession or the profession of accountancy or technical consultancy or interior decoration have to maintain books of accounts.

(b) Other persons have to maintain books of accounts if income from business or profession exceeds Rs. 1,20,000 in any one of the three preceding years.

2. Mercantile/Cash Basis
(a) Cash basis of accounting means recording incomes and expenses on receipt or payment basis, as the case may be.

(b) Mercantile basis of accounting means recording expenses and income on accrual basis, i.e., when the expense is incurred or bill is raised, or payment made/received, whichever is earlier.

Sankar Chakraborty

( Author )
30 May 2012

lot of thanks to u sir.

Siddhartha Bhardwaj

( Expert )
30 May 2012

You are welcome. you should use the thanks button to convey your thanks.

Sankar Chakraborty

( Author )
30 May 2012

when a individual/contractor having a proprietory business then what for to be used I.T.R 4 OR 4S

OR WHAT IS THE DIFFERENCE BETWEEN ITR 4& 4S
PLEASE REVERT

Soumitra Basu

( Expert )
31 May 2012

ITR 4s for deemed income
ITR 4 other than deemed income

Siddhartha Bhardwaj

( Expert )
31 May 2012

ITR 4S is for an assessee who falls within the perview of Section 44AD.

In case of a trader, he should fulfill the follwoing conditions:

1. He should be an individual, HUF or firm (but not a LLP).
2. His turnover must not exceed Rs. 60 lakhs (1 crore w.e.f AY 13-14).
3. He should declare income @ 8% of the turnover.

Sankar Chakraborty

( Author )
31 May 2012

dear siddhartha sir,
in my case: the said individual is a electrical contractor who has a proprietory company and does not maintain any office for books of accounts
then what form should i use i.t.r 4 or 4s ?

please answer

Siddhartha Bhardwaj

( Expert )
31 May 2012

If his gross receipts do not exceed Rs. 60 lakhs, you can use ITR 4S and declare income at 8% of gross receipts.

Sankar Chakraborty

( Author )
31 May 2012

in ITR 4s what for 44AE ? is it left blank for the said electrical cotractor's return

Siddhartha Bhardwaj

( Expert )
31 May 2012

Section 44AE has to be left blank. It is for transporter.

You have to fill details in Section 44AD.