Filing of return

This query is : Resolved

Ravi Manian D (Querist)
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12 August 2011 Sir, one of my client who undertakes electrical contract work approached me for filing his return of income by providing his TDS Certificates. I filed his return u/s 44AD. Later he informed that he has received some more tds certificates. On pursuing it i found that one certificate relates to professional fees paid to him.

Now, i wish to make revised return. Kindly advise, can i show his income u/s 44AD as well under business and profession for the professional fees received. If no, then how to file the revised return. Is it advisable to show both his contract income and professional income and prepare a income and expenditure account and proceed.

Kindly advise me in this regard.

U S Sharma

U S Sharma (Expert)
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12 August 2011 professional fees is not covered under 44AD, hence make statement of accounts and revise the return with ITR4

PRAMOD PANDIT M.COM , CA FINAL

PRAMOD PANDIT M.COM , CA FINAL (Expert)
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12 August 2011 ut 26as

revised itr by adding in previous gross receipt whatever professional receipt

and also add some % of such professional income in p.show income as total income shoul exceed more than 8%

and file return there is not any problem

as income tax department to make simple filing introduce amendment in 44ad. And one thing professionals can also use sec 44 ad so there is no dispute between business and profession.dear Ravi

sec 44 ad
say minimum 8% of gross receipt should be taken as income

as per my opinion first u check out 26as

revised itr by adding in previous gross receipt whatever professional receipt

and also add some % of such professional income in p.show income as total income shoul exceed more than 8%

and file return there is not any problem

as income tax department to make simple filing introduce amendment in 44ad. And one thing professionals can also use sec 44 ad so there is no dispute between business and profession.

C A S.S.Agarwal, M.Com.,LL.B,

C A S.S.Agarwal, M.Com.,LL.B, (Expert)
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12 August 2011 If payment has been received partly for profession and partly for contract then 44AD will not apply but you have to apply your mind if the 80 to 90% of the income is from contract then as in contract and file a revised return by applying 44AD