Income from salary and profession

This query is : Resolved

CA Rachit Gupta (Querist)
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27 July 2014 Dear experts

A person having one time professional receipts of Rs.3,00,000 on which tds u/s 194J is deducted i.e. Rs.30,000. He has some expenses in rendering that service amounting Rs.2,50,000.
The net income being Rs.50,000.
He has salary income also of Rs.8,00,000

My query is : can he claim Rs.50,000 as other income and file ITR1
Or
He has to show Rs.50,000 as professional income and file ITR4

Note: Profession is not covered under specified profession.

Please give your valuable feedback.

Thanks
Rachit

Nikhil Kaushik

Nikhil Kaushik (Expert)
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27 July 2014 you still have to file ITR-4.

CA Rachit Gupta

CA Rachit Gupta (Querist)
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28 July 2014 Hello

If he claims Rs.50,000 as income from profession. Then tax become refundable as TDS is deducted on gross receipts of Rs.3,00,000

He is not required to prepare books of accounts.

If in future AO opens the case, then how can assessee justify that he claims an expenditure of Rs.2,50,000 as he is not required to prepare books of account.

Please suggest.

Thanks
Rachit

Nikhil Kaushik

Nikhil Kaushik (Expert)
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28 July 2014 expense are not justified on the basis of books. For that you need actual invoices. so as long as you have the required documentary evidence, why worry!

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