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unknown (B.Com) (87 Points)

22 June 2017

a person has income from job work and total turnover is rs 950000, now the assessee wants to file his return under 44 AD but while filing the return it is asking to specify that income will be recd in electronic mode or any other mode. the person has recd only 4 lac rs till date and he is it not sure that whether he will receive such amount in electronic mode or any other mode. how should we file the return.

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10 Replies

CA Hariprasad Nayak (Chartered Accountant) (221 Points)
Replied 22 June 2017

Dear Sir,

One major question that I have in my mind is- why this is relevant? Firstly, I am always under the impression that proviso to Section 44AD(1) relating to concessional rate of 6% of the turnover for presumption of income (against 8%) is applicable only from AY 2018-19 and not for AY 2017-18.

Coming to the qustion in hand, since till the date of filing the return of income he has received only 4 Lac by way of cheque/ electronic payment, you may mention entire Rs 4 Lac is subjected to concessional taxation- balance will be offered at 8% as usual (since you are not very sure how you are going to receive it).

Practically, the Govt has made sure that payment for expenses in cash is limited to Rs 10,000/-. Hence, to my mind the Assessee, as a job worker may not receive it in cash henceforth.

Views of other experts solicited.

Regards,

CA Hariprasad Nayak

9481227467

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unknown (B.Com) (87 Points)
Replied 22 June 2017

hello sir. thank u for the valuable information provided by you, i would like to ask one more thing from you. the utility says that the gross reciepts recd till the specified date, can you plz let me knw whether specified date means 31st mach of the relevant year or 31 st july of the relevant year.

CA Bhargav Nathwani (CA in Practice) (8307 Points)
Replied 22 June 2017

Originally posted by : CA Hariprasad Nayak
	Dear Sir, One major question that I have in my mind is- why this is relevant? Firstly, I am always under the impression that proviso to Section 44AD(1) relating to concessional rate of 6% of the turnover for presumption of income (against 8%) is applicable only from AY 2018-19 and not for AY 2017-18. Coming to the qustion in hand, since till the date of filing the return of income he has received only 4 Lac by way of cheque/ electronic payment, you may mention entire Rs 4 Lac is subjected to concessional taxation- balance will be offered at 8% as usual (since you are not very sure how you are going to receive it). Practically, the Govt has made sure that payment for expenses in cash is limited to Rs 10,000/-. Hence, to my mind the Assessee, as a job worker may not receive it in cash henceforth. Views of other experts solicited. Regards, CA Hariprasad Nayak 9481227467

whole trunover should be cover under electronic receipt/cheque. It's prima-faci condition of getting discount of 2%

RAJA P M ("Do the Right Thing...!!!") (128083 Points)
Replied 22 June 2017

Originally posted by : unknown
	a person has income from job work and total turnover is rs 950000, now the assessee wants to file his return under 44 AD but while filing the return it is asking to specify that income will be recd in electronic mode or any other mode. the person has recd only 4 lac rs till date and he is it not sure that whether he will receive such amount in electronic mode or any other mode. how should we file the return.

In your Question based., The T/O is total business value. Some amount ll be not received the Asseesee. But, Turn Over is his Invoices/Bills/Any more. So, you can fill the amount from bank's received after the balance will be shown in other mode.

Finally you should enter the Debtors/Creditors details.. It's assumed Rs. 950,000 - 400,000 = 550,000 on Debtors Value

CA Hariprasad Nayak (Chartered Accountant) (221 Points)
Replied 22 June 2017

Hi,

Specified date means the due date to file the return of income u/s139(1).

Regards,

CA Hariprasad Nayak

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RAJA P M ("Do the Right Thing...!!!") (128083 Points)
Replied 22 June 2017

The Specified Date is Two different Period. That Means.,

1. Specified Period of the RETURN - 1st Apr 2016 to 31st Mar 2017

2. Specified period of the CASH DEPOSIT- 9th-Nov-2016 to 30th-Dec-2016

(Guest)

Originally posted by : unknown
	a person has income from job work and total turnover is rs 950000, now the assessee wants to file his return under 44 AD but while filing the return it is asking to specify that income will be recd in electronic mode or any other mode. the person has recd only 4 lac rs till date and he is it not sure that whether he will receive such amount in electronic mode or any other mode. how should we file the return.

If you receive the balance in electronic mode before return filing, then you can show it under 6% category.

(Guest)

Originally posted by : CA Hariprasad Nayak
	Dear Sir, One major question that I have in my mind is- why this is relevant? Firstly, I am always under the impression that proviso to Section 44AD(1) relating to concessional rate of 6% of the turnover for presumption of income (against 8%) is applicable only from AY 2018-19 and not for AY 2017-18.

Dear sir, the amendment is applicable w.e.f. 1-4-2017, hence it is from AY 2017-18.

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