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.
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.
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!
CAclubindia
