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)
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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)
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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)
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15 August 2020 Thanks Sir. Perfect reply.

CA KARAN SINGH

CA KARAN SINGH (Expert)
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15 August 2020 Most Welcome Yog Raj Ji. Glad to help you.

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