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Rajesh (Querist)
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24 July 2011 I am a Govt employee. I have published a book in Jan 2011. Following are my income/loss details:
(a) Salary Income from government (Form-16) : Rs. 1263029/- [Tax Deducted by employer - Rs. 180500/-]
(b) Income under section 194J form publisher (Form-16A): Rs. 126782/- [ TDS deducted by publisher Rs. 12678/-]
(c) Interest paid on Housing Loan: Rs. 91431/-
(d) Expenditure incurred (purchase of ref books/ other reading material, CDs, Typing/editing/ formatting Charges, Leaser print-out, Figures and Diagram Making charges, Photocopy, stationary) for writing the book in FY 2010-11 : Rs. 84900/-
(e) Savings u/s 80C : Rs. 100000/-

Questions:
(a) Which ITR form is to selected in this case, till now I was filing ITR-2 when there was no other income?
(b) Where to adjust expenditure of Rs. 84900/- [In ITR-2 will it be right to reflect income and expenditure in SCHEDULE OS – I(d) and I(f)(i) respectively?]
(c) How to keep the account of expenditure on books published as someone told me that section 44AA can be attracted if deduction of expenses is taken.
[d] What is my balance tax liability?

Bhaskaran Chackrapani Warrier

Bhaskaran Chackrapani Warrier (Expert)
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24 July 2011 a) Before selecting the ITR, classification of income from book publishing has to be determined meaning thereby whether comes under "business" or "profession" for which your qualification and the subject of the published book has to be necessarily known.
Prima facie,
i)if selected under "business", presumptive taxation covered under section 44AD of the Income tax Act,1961 opted leading to the selection of ITR-4S.
ii) if selected under "profession" ITR-4 has to be used.
b) Left open for want of details as in preamble of clause 9a) above.
c) Section 44AA will not attract since income from publication is less than Rs.1.20 lacs and gross receipts from such activity is less than Rs. 10 lacs.

Rajesh

Rajesh (Querist)
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25 July 2011 My profession is teaching in DU College and Books written are science books for school.

Bhaskaran Chackrapani Warrier

Bhaskaran Chackrapani Warrier (Expert)
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25 July 2011 Amount received from publisher may be offered under the head'income from other sources'being royalty. ITR-1 is the appropriate form. My earlier observation as in (a)(i),(ii) and (b) is modified to the extent given above.

Rajesh

Rajesh (Querist)
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25 July 2011 Sir, I started ITR-4, with your answer I am more confused. In ITR-I how I will put by Interest on Housing Bank Loan, which I was claiming in ITR-2 in earlier years. Can I use ITR-2 and reflect the earning and expenditure as I have asked in my First Question.
An early reply will be appriciated

Rajesh

Rajesh (Querist)
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25 July 2011 Experts openion is still awated please

Bhaskaran Chackrapani Warrier

Bhaskaran Chackrapani Warrier (Expert)
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26 July 2011 H.L interest may be shown in page-1 of ITR-1 in clause B2 and in working sheet-2.

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