Itr 4

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

04 August 2011 Dear Sir/Madam

I have one query about ITR 4.
A Individual Proprietor Business (Commission Agent of Agricultural Products, Whole Sale Traders Agricultural Products, Trading In Anaj Mandi)

Income in Books of Accounts
Profit From Sales Of Goods--Rs. 20000
Commission received on Sales of Goods-- 35000
Interest Received on Advances-- 15000

I want to know treatment of commission and interest in itr 4.
whether interest and commission taken in heads of other income or PGBP.

CA PARAS BAFNA

CA PARAS BAFNA (Expert)
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04 August 2011 Interest to be taken under the head of income from other sources.

Commission Income is PGBP

In my view, in case turnover+Commission is less than 60lacs, you have to file return in ITR 4S.

In that case you have to show profit @ 8% or more of (Turnover+Commission).

Querist : Anonymous

Querist : Anonymous (Querist)

04 August 2011 But Books of Accounts are maintained by proprietor.
Is ITR 4 inappropriate return in this case.

CA Ashwani Agarwal

CA Ashwani Agarwal (Expert)
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07 August 2011 It depends upon the nature of interest. If it is advanced to your suppliers and they are giving you interest on the same then it can be treated as a business income otherwise it will be treated as Income from other sources.

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