Income Tax Return

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This discussion addresses an individual with a furniture retail business turnover of ₹1.55 Crore, including ₹15 lakh commission. Key questions about compulsory tax audit, filing under Section 44AD, tax saving, and the correct ITR form are answered. The advice confirms a tax audit is compulsory and suggests filing ITR 3, declaring commission as normal business income and the rest on a presumptive basis.

Yog Raj

Yog Raj (Querist)

13 August 2020 My client has turnover of 1.55 Crore (business of furniture retail). Out of this, commission is 15 lakh (TDS deduction on it u/s 194H). This commission was for orders procured to OEM from the market. Out of total turnover 1.45 crore receipts through banking system and 10 lakh through cash. Purchase & Sale record available, GST returns filed. No record of banking transaction. Questions are:

1. Is audit compulsory?
2. Can I file ITR under section 44AD (considering commission component in turnover)?
3. How can I save maximum income tax?
4. Which form should be used to file ITR?

CA KARAN SINGH

CA KARAN SINGH (Expert)

15 August 2020 Dear Mr. Yog Raj Ji. Answer to your queries are:
Q1. Tax Audit is compulsory. Otherwise, your return may be declared as defective.
Q2. Yes, you can declare income of Rs. 1.4 Crore on a presumptive basis.
Q4. File Form ITR 3. Declare Commission income as normal business income and rest of the business income on a presumptive basis in column 61 under Schedule Part A - P&L.

Yog Raj

Yog Raj (Querist)

15 August 2020 Thanks Sir. Perfect reply.

CA KARAN SINGH

CA KARAN SINGH (Expert)

15 August 2020 Most Welcome Yog Raj Ji. Glad to help you.

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