Itr 4 "no accounts case" - am i eligible?

Save Share

This query is : Resolved

Makrn (Querist)

03 August 2015 Hi,
I am an IT freelance consultant (no legal entity) started working independently since Dec 2014. This is first time I am filling out ITR4 (I have income from capital gains too). My receipts in 2014-15 were Rs. 2,04,000/- from a single client through a consultancy agreement and monthly invoices.
1)In ITR-4 Part A General Info, question "Are you liable to maintain book of accounts u/s 44AA", should I select Yes or No?
2) Next question: "Are you liable to audit u/s 44AB", should I select Yes or No. (I believe 'No' considering the criteria in 44AB).
3) In schedule BS, can I use No Account Case even if I am liable to maintain book of accounts (Yes for 44AA question)?
4) If I can't use No Accounts case, can I leave all entries in BS 0 except total receipts? I do not want to claim any expenses.
5) Same in schedule PL? I want to show entire receipts as profit, can I leave all fields 0, if I can't use No Accounts case?

Thanks in advance.

CA PARAS BAFNA

CA PARAS BAFNA (Expert)

04 August 2015 1) Select Yes.
2) Select No.
3) You can not do so. You have to fill up Balance Sheet Data.
4) In Balance sheet you have to show your Assets and Liabilities as on the last date of the Previous year. Simply you can not write "0"
5)If you deem it fit you may do so. However, certain mandatory expenses incurred in performing the work, are required to be shown.

Message likes : 2 times

Makrn

Makrn (Querist)

04 August 2015 You cleared my doubts. However, I am surprised at "certain mandatory expenses incurred in performing the work are required to be shown". If I am willing to show entire receipt as profit, it is good for ITax dept, why should they be bothered?

You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now