07 June 2014
I am a Housewife. I am coaching the students up to class 8. And I am having income from FnO(stocks)
My total income becomes nearly 1.5 lakhs. Considering the above mentioned categories, I have filled ITR4 last year for the first time.
But this year I have not done any transaction in FnO and only tuition income is there (95000 approx). This time shall I fill ITR1 with tuition income as income from other sources, because there is no business income ? OR ITR4 only is mandatory because once I have already filled it.
07 June 2014
Even if no income in FnO thus year, ITR 4 needs to be filed as Tution Income is taxable under the head PGBP. ITR 1 is for salaried individual.
to consider any income as Income from other sources, you need to first establish that the said income doesn't fall under any other income head.
Income from tuition gets covered under Section 28(1).
By virtue of Section 56(1), any income can be included in "income from other sources only if the same is not covered under Head A to E under section 14.
But ya agreed with your point that ITR1 can be used even when there is no salary income.
08 June 2014
Just take an alternative argument...if the tuition income is to be considered "income from other sources", then why not the same rule applies to F&O income if her main occupation is of being a housewife and rest all are incidental incomes?
08 June 2014
Kirshna - whether ITR4S can be filed or not is debatable. While many experts hold the view that all the professions (including vocations) are excluded from the ambit of 44AD, some believe only 44AA(1) professions are excluded.
09 June 2014
for giving tuitions no license is required. If we go by your judgment, then even F&O trade should have been considered as other incomes as even that was a part-time activity.
As I said before, to consider something under "other Income", you need to first rule out other four heads.
10 June 2014
two years ago, so, the income you earn from palm reading - is it business income or other income? at the end of the day thats not your main activity!
it doesnt work on the whims or fancies of the assessee to decide where he wishes to claim any income. income under business/profession includes income from vocation. coaching, whether you teach class I or class XII or a CA student, is application of human brain and is accounted therein as a vocation.
two years ago on a similar query you agreed to a comment that if the income is more than 1.5 lakhs, offer it as professional income. if less than 1.5 lakhs than as other incomes. Not sure what is the basis of such an agreement because no tax law or case law prescribes such a classification.
10 June 2014
vocation is not defined in section 2 friend!!!
you may use the word, vocation, calling etc etc. doesn't make tuition activity other income.
it is business income because it is an activity to earn active profits. it is application of human brain. being an housewife is not an activity or a profession, on account of which other activities can be included in "other activities".
11 June 2014
Income is chargeable to tax under head Income from other sources only if none of the specified heads is applicable to the income in question;it comes into operation only after the preceding heads are excluded:
Above lines are as per Sec.56 of Income tax act 1956, . . When u see it is clearly evident that "tution income" can be chargeable to tax under head Business / profession. . Then question of Other sources should not arise. . . **************** Morever for assesse it is major source of income as he do tutions regularly.... . . SO with out any doubt ITR4/ITR4S applicable . I recommend to file ITR4 . .
11 June 2014
I appreciate if there is a debate between ITR4 Vs ITR4S . ITR1 should not be filed . . Morever after The Income-tax (3rd Amendment) Rules, 2013 which have been issued vide Notification No. 34/2013 dated 1.5.2013 provides for amendments in Rule 12 of Income-tax Rules, 1962. . . WITH THIS DEVELOPMENT
Only in very rare cases ITR1 applicable.
(See Above refered Rule 12 to see where ITR1 cannot use)
I dont want to discuss on this more than this . .Because our discussion should not led author of query in confusion . . . . FINAL DECISION . . FILE ITR4 JUST LIKE EARLIER YEAR . .
section 56, section 28, section 2, rule 12..all have been discussed above...can't help more!
with regards to ITR4 vs ITR4S debate, it seems a never-ending dice for tuition income. While many argue that it should not be covered under 44AD, others believe it can be.
11 June 2014
Appropriate form as per me is ITR-4, Since the income earned based on assessee`s skill & knowledge. so covered under PGBP accordingly ITR-4 will apply.
15 June 2014
I really advise you not to go on that route. kindly don't misrepresent. misrepresentation of facts can attract penalty under section 271 upto 3 times of tax evaded, if any, on account of inaccurate information.
16 June 2014
Whether we can discontinue filing return for the year, in which income is not there. OR we have to fill the return every year, once we started filing it.
The above doubt came because some people got notification from IT that they have not filed their return for so and so year.
16 June 2014
people got letters from income tax department on the basis of certain transactions they entered into those years. like trading in stock markets, credit card transactions. But please note that the notice was not for filing the return but to know the reason for not filing.
Section 139(1) provides that an individual may not file return is the income is below taxable limit.
It is only a good practice that you may continue filing returns even where income is below the taxable limit. And it is for this, I recommend that you use the correct form only.
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