While preparing P&L account for the year for a professional individual, the income exempt from tax such as PPF interest, s. 10(38), etc., etc. is to be included in the p&l account or can it be directly transferred to the Capital account of the proprietor?
As per my understanding of section 10, it do states that incomes which are not chargeable to tax not ti be included in total income.
please guide me.
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inclusion of exempt income under section 10 in P&L Account or not?
Replies (13)
Your understanding is correct. P&L acc can be just for professional income.
yes exempted income should always mentioned in capital account.
When an individual files ITR under section 44ADA for professional income in ITR 4, I dont see any tab for EI (Exempt Income Schedule). How one can show the amount of EI of say 5-10 lakh, any amount there?
Taxes Paid
| Please note that calculated fields (in grey) are picked up from other schedules and are not to entered. For Eg : The taxes paid figures below will get filled up when the Schedules linked to them are filled. | ||||||
| D13. |
Total Advance Tax Paid |
|||||
| D14. |
Total Self Assessment Tax Paid |
|||||
| D15. |
Total TDS Claimed |
|||||
| D16. |
Total TCS Collected |
|||||
| D17. | Total Taxes Paid (D13 + D14 + D15 + D16) | |||||
| D18. | Amount Payable (D12 - D17, if D12 > D17) | |||||
| D19. | Refund (D17 – D12, if D17 > D12) | |||||
| D20. | Exempt income only for reporting purposes (if agricultural income more than 5000 use ITR3/5) |
|||||
D21. Details of all Bank Accounts (excluding dormant accounts) held in India at any time during the previous year (Mandatory irrespective of refund due or not)
a) Bank Account in which refund, if any, shall be credited
| S.No. | IFS Code of the bank * | Name of the Bank * | Account Number (the number should be 9 digits or more as per CBS system of the bank)* | Details of cash deposited in bank during 9-11-2016 to 30-12-2016 (Amount in Rs.) (if aggregate cash deposits during the period ≥ Rs.2 lakh) |
| 1 |
b) Other Bank account details .............. ............
What is this D20............. Dear?
D20 says exempt income but not mentioned any section number there. and in bracket it says if agricultural income more than 5000 use ITR 3/5
does that exempt income mean all the Exempt incomes under section 10 of the Act..
I think yes...
BCOZ ITR 4S (now only 4) does not have any specific field to show exempted income. and so have to go for 3
so if any person has exempted income in addition to professional income, then he can go for ITR4 also...as this exempt income (D20) is written there or can fill ITR3 only?
it do seem awkward as mostly all person must have some exempt income in a year. if this logic is to be applied then no one will fill ITR4 presumptive one.
u can also declare presumptive income in itr 3.
presumptive income is in ITR4?
yes as now in itr 3 u can declare it also.
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