44aa & 44ad
This query is : Resolved
14 April 2012
i am doing brokerage business having gross receipts RS. 315500 for the financial year 10-11.i have shown profits of Rs.161250 in my return(filed after due date)which is more than 8% of gross receipts.but i wrongly filed return in ITR 4 instead of ITR 4s(presumptive Income).i received a notice from income tax deptt u/s 271A to show cause against non maintenance of books of accounts when i m showing income above Rs. 120000.further i can not revise the return as it is filed after due date.Please tell me way out.
CA PARAS BAFNA
(Expert)
14 April 2012
Maintain the Books of Account if possible.
For that follow the Bank Statement, TDS certificates, Expenses Vouchers, Copy of Account from the Parties from whom Brokerage has been received or any transactions have . been entered into during the relevant PY.
.
In case of Brokerage income there will be hardly 100-150 Data entries.
.
Do it your self or any of your friend having Accounting Package. If you are not the party, tell the party to get the accounts completed from any accountant.
.
You may reply then, that you have maintained books of account and you have chosen wrong part of the correct ITR 4, by mistake.
.
From the recent budget you may gather that amendment in Section 44AD has also been made and transactions of Brokerage are out of the scope of Section 44AD.
.
For that follow the Bank Statement, TDS certificates, Expenses Vouchers, Copy of Account from the Parties from whom Brokerage has been received or any transactions have . been entered into during the relevant PY.
.
In case of Brokerage income there will be hardly 100-150 Data entries.
.
Do it your self or any of your friend having Accounting Package. If you are not the party, tell the party to get the accounts completed from any accountant.
.
You may reply then, that you have maintained books of account and you have chosen wrong part of the correct ITR 4, by mistake.
.
From the recent budget you may gather that amendment in Section 44AD has also been made and transactions of Brokerage are out of the scope of Section 44AD.
.
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19 April 2012
Thank you Sir.
But in this situation i can/t maintain books of a/cs as all are cash transactions.Could you please refer any case law when assess has committed some technical mistake as above & not levied penalty.
But in this situation i can/t maintain books of a/cs as all are cash transactions.Could you please refer any case law when assess has committed some technical mistake as above & not levied penalty.
CA PARAS BAFNA
(Expert)
19 April 2012
Please understand the nature of business properly before filing any return.
.
In case of Brokerage Received in cash, you can maintain even a diary also by entering date wise receipts.
.
You may debit expenses on monthly/weekly basis.
Prepare an excel sheet of the various items of income & expense and fill up in the diary.
.
Furnish the Statements showing monthly figures.
.
In the absence of any documentary evidence, no case law will help you, because the case is of non- maintenance of BOA and not of filing the return in wrong ITR.
.
If you maintain such details then also you may escape from penalty.
.
.
In case of Brokerage Received in cash, you can maintain even a diary also by entering date wise receipts.
.
You may debit expenses on monthly/weekly basis.
Prepare an excel sheet of the various items of income & expense and fill up in the diary.
.
Furnish the Statements showing monthly figures.
.
In the absence of any documentary evidence, no case law will help you, because the case is of non- maintenance of BOA and not of filing the return in wrong ITR.
.
If you maintain such details then also you may escape from penalty.
.
Message likes :
1 times
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