Income tax

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

14 February 2016 one of my friend want loan to bye a car, on the advice of bank manager and car dealer He has filed two year ITR 4 under 44 AD .with income of 5lacs each and 50000 agriculture income which he does not have and paid required tax.What will happen if his ITR comes under scrutiny.Kindly advice what papers he should prepare.

KAVIRAJA ADDANGADI

KAVIRAJA ADDANGADI (Expert)
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14 February 2016 Whether he own Agriculture land for declaring agricultural Income, what income declared u/s 44ad, both they have to justify source of Income with respect to declared Income.

Querist : Anonymous

Querist : Anonymous (Querist)

15 February 2016 If he is not able to justify than.He is doing cash business and does not maintained a/c. can he show agriculture land on lease.

Querist : Anonymous

Querist : Anonymous (Querist)

16 February 2016 Mr KAVIRAJA kindly tell me what is 44ad In ITR 4 there are two options 1 where accounts are maintaned and other where a/c are not maintained.

KAVIRAJA ADDANGADI

KAVIRAJA ADDANGADI (Expert)
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16 February 2016 44AD income declared without maintaining Books of Accounts. you have to declare minimum 8% of Gross Receipts, but you have not mentioned nature of Business Income ?

Querist : Anonymous

Querist : Anonymous (Querist)

16 February 2016 Kaviraja I believe u are on line

Querist : Anonymous

Querist : Anonymous (Querist)

16 February 2016 His receipts is about 5.5 lacs and taxable income is 3.8 lacs. plus50000 /ure got2.7 lacs by chque3 0000 TDS forOther was mostly small amount He does consultancy mostly education and career counceling ,guiding students to take admission in U S A ,UK Australia etc and charge very minimum fee . He does not maintain a/c and has filed ITR4 AY 15-16 Kindly guide him.I found you very helpful. Thanks