Income from technical consulting + interest/capital gains

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

30 May 2015 Hi,

I became a freelancer in FY 2014-15 and did management consulting for two companies where the gross receipts, of both places combined, were < 7Lakhs.

I also have some income from interest & long term capital gains (from shares/MFs).

My query is:

# 1: Do I need to maintain book of accounts & get it audited by a CA?

# 2: Do i need to furnish balance sheet while filing ITR for FY 2014-15?

# 3: Any other points I need to be aware of for taxation purposes?

I have all receipts of bills/expenses that I have done in the year.

Regards,

Nikhil Kaushik

Nikhil Kaushik (Expert)
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30 May 2015 1. audit is not required

2. accounts - P&L and balancesheet is required

rest just ensure that bills and expenses are properly accounted for in the profit & loss Account

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CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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30 May 2015 1 You need to maintain books of accounts but tax audit is not required.
2 No need to furnish balance sheet as you are not doing business.

Nikhil Kaushik

Nikhil Kaushik (Expert)
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30 May 2015 seetharaman ji.

since when consultancy is not considered as business/ profession. please read provisions of section 44AA. maintenance of accounts itself entail preparation of financial statements!

whether they have to be audited or not is a separate issue

CA P RAVICHANDRA

CA P RAVICHANDRA (Expert)
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30 May 2015 tax audit u/sec 44ab is not required
books of accounts need not be maintained
and balance sheet,profit and loss account need not be prepared
you can file the return based on presumtive basis

Nikhil Kaushik

Nikhil Kaushik (Expert)
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30 May 2015 How come Mr Ravichandra? since when professional income is covered under presumptive basis...

management consultancy is a profession and should get covered under 44AA(1) (technical consultancy). And as per section 44AD, 44AA(1) professions cannot use deemed income provisions.

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CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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31 May 2015 I agree with your views but being a management consultant earning less than 7 lacs, need for preparation of balance sheet arises.

Nikhil Kaushik

Nikhil Kaushik (Expert)
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31 May 2015 absolutely. as long as 44AA conditions are satisfied, you need follow it.

Not only this, you need to maintain books even where your income is below the exempted limit but exceeds the amount provided in 44AA