27 May 2016
Sir, I need help regarding Income tax return of News Paper Distributor Agency, My friend taken agency for news paper distribution in Mumbai, he will go to door to door offices / house in morning and distribute News paper and collect monthly fees from client and also make payment in cash for news paper purchase from News paper printing press Like (Times of India, Nav Bharat, Hindustan times etc.)
1. can we file ITR-4S or ITR 4 he will not maintain Books of accounts, he just receive cash from client and make payment in cash to Agency who printing news paper.
2. can he file return U/s 44AD by booking profit 8% of turnover
3. In Which head Income of News paper distributor shown in income Tax return - Whether PGBP or Income from other source (commission), He own purchase & Sale by self.
27 May 2016
you are taking the newspaper from press and then you sale and collect the amount . pls see the agreement with the newapaper printing press and agency. its found normally agency, newspaper take security from the you and give you intt on the security and commission on the basis of the sale of newspaper copy sold by you , you are collecting cash and send the amount to newspaper company. and newspaper press deduct the tds on Commission. as per income tax tax a agent can collect the cash on behalf of the principle and make payment in cash . there in no problem under the income tax act. bur u/s 44AD following business not come The scheme of section 44AD is designed to give relief to small taxpayers engaged in any business, except the following businesses: Business of plying, hiring or leasing of goods carriages referred to in section 44AE. A person who is carrying on any agency business. A person who is earning income in the nature of commission or brokerage
so you cannot file ITR4S, you have to file form 4 and prepare books of accounts.
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