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Help regarding itr filling

Ninad (Student) (278 Points)

08 August 2016

Hello Experts,

One of my friend swithed his co. His new co. deducted tds under sec 194j while in previous co. as his income was not taxble no tds was there. His salary from 1st co. was rs.225000 and from second co. his income is rs.402000. What is the tax amt on this income and which itr to file???

Plz help me out.

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15 Replies

Dhirajlal Rambhia (SEO Sai Gr. Hosp.) (160322 Points)
Replied 08 August 2016

Rs. 2,25 L is considered as Salary income, While Rs. 4.02 L is income from Business/Profession; from which any actual expenditure can be deducted, so that your tax liability can be lowered.

If your other income and deductions are NIL, tax liability as it is around 50K; but it could be around 30K or even lower by deduction of business expenditures,

You are required to file ITR 4

1 Like

Ninad (Student) (278 Points)
Replied 08 August 2016

Thank u very much sir!!!!!

He is a software eng. Will this come under the head Profesional- others category??? And should he file ITR 4 or 4s?? And cant be the same income shown under other sources and file ITR 1?? Actully he works for a South African co. so he dont have any expenditure. So what can be done ???

Dhirajlal Rambhia (SEO Sai Gr. Hosp.) (160322 Points)
Replied 08 August 2016

As Tax has been deducted under section 194J, its for professionals/consultancy income only. So its income from profession only. No one can believe to earn professional income without any expenditure, so deduction is must!!

You cannot file ITR 4S this year i.e Ass. Year 2016-17, and before; from next year you will be allowed.

This year only ITR 4

1 Like

Udgam Koomar (Tax Technologist) (1949 Points)
Replied 08 August 2016

ITR4 should suffice

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Ninad (Student) (278 Points)
Replied 08 August 2016

Thank U Experts...

No sir he dont have any expenditure. He actullay earned the income by providing service from home.

CA J.Alamelu lakshmi (Chartered Accountant) (852 Points)
Replied 08 August 2016

He may have incurred expenses by way of Telephone or Internet charges for earning that income. That may be decucted from the Gross value.

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HAFIS RAHMAN .P.K (ppkk and associates) (56 Points)
Replied 09 August 2016

how we can ensure that his income from first company is salary?? @ Dhilrajlal...

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Dhirajlal Rambhia (SEO Sai Gr. Hosp.) (160322 Points)
Replied 09 August 2016

@ Mr. Hafiz, 1. Salary certificate 2. No deduction of TDS as salary did't exceed exempted limit of 2.5

1 Like

Dhirajlal Rambhia (SEO Sai Gr. Hosp.) (160322 Points)
Replied 09 August 2016

@ Ninad:: As time for regular filing of ITR 4 has already lapsed, you will have to file Belated return, and after deducting your TDS (u/s.194J means @ 10% around 40-45K), if there is any more tax liability, you will have to pay interest at 1% for each month of delay, u/s. 234A, AND..

If the tax due is more than Rs 10,000, the taxpayer should have paid an advance tax. Advance tax is payable in three tranches–30% is to be paid by 15 July of the financial year, 60% by 15 December and 100% by 31 March. If this tax has not been paid, the penalty.
If one is filing Belated return then there could also be a Rs 5,000 penalty for late filing depending on the assessing officer.

But...

In case no tax is payable, the taxpayer won’t be liable to pay any interest for filing return of income tax after due date but before the end of the relevant assessment year.
So, as suggested please file your return earliest, with due calculations.

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Ninad (Student) (278 Points)
Replied 09 August 2016

Thank u very much Experts..

My friend has earned rs.225000 from 1st company and rs 4020000 from the 2nd co. which has deducted tax under 194j of rs.40200 which can be seen in form 26as. He has a deduction of rs 6000 as pf and rs 40000 as lic premium previous co. His total tax would be around rs.41200 without intrest and penalty.Is my calculation right????

Ninad (Student) (278 Points)
Replied 09 August 2016

@ CA J.Alamelu lakshmi: No madam everthing is provided by co.

Dhirajlal Rambhia (SEO Sai Gr. Hosp.) (160322 Points)
Replied 09 August 2016

@ Ninad, yes its exectly right, but to that you are suppossed to add Edu. cess of 3% ie. 42436/- and deduct TDS paid of 40200/- So net payable Rs.2236. Add interest U/s. 234, which will be taken care by ITR utility!!

1 Like