Itr4-s

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Querist : Anonymous

Querist : Anonymous (Querist)

25 June 2014 HI,

I am working in a firm in accounts department on professional basis

i receive rs 20000 pm ie. 240000 pa on which tds is deducted under 94J.

after claiming various expenses, around 40000/-, i am claiming my net income around 2 lakh

Can i file IT Return using ITR4S.

i dont have any other income except small amount of bank interest about 5000 for full year

Rupesh Jain

Rupesh Jain (Expert)
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25 June 2014 no you have to file ITR-4 as income of profession.

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Querist : Anonymous

Querist : Anonymous (Querist)

25 June 2014 hi

are books required to be maintained under sec 44AA & audit required under 44AB in my case
as gross receipts from profession are only 240000/- pa

I am declaring around 2 lakh as my net income after expenses

Aashok Kumar Sharma

Aashok Kumar Sharma

(Expert)
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02 August 2024 For your situation, where your gross receipts from a profession are ₹2,40,000 per annum, here's a breakdown of the requirements under Sections 44AA and 44AB:

### **Section 44AA: Maintenance of Books of Account**

**Requirement:**
- **Section 44AA** mandates that professionals (e.g., doctors, lawyers, accountants) must maintain books of account if their gross receipts exceed ₹1.5 lakh in any financial year.

**Your Situation:**
- Since your gross receipts are ₹2,40,000 per annum, you are required to maintain books of account under Section 44AA.

**Books to Maintain:**
- **Cash Book**: Record of all cash transactions.
- **Journal**: Record of all business transactions in a chronological order.
- **Ledger**: Summary of all transactions recorded in the journal.
- **Other Documents**: Supporting documents for expenses, receipts, and other financial transactions.

### **Section 44AB: Tax Audit**

**Requirement:**
- **Section 44AB** requires a tax audit if the gross receipts from the profession exceed ₹50 lakh in a financial year.

**Your Situation:**
- Since your gross receipts are ₹2,40,000, which is below the ₹50 lakh threshold, a tax audit under Section 44AB is not required.

### **Summary of Your Obligations:**

1. **Books of Account**: You must maintain books of account as your gross receipts exceed ₹1.5 lakh.
2. **Tax Audit**: A tax audit is not required as your gross receipts are below ₹50 lakh.

**Additional Points:**

- Even though a tax audit is not required, maintaining proper books of account is essential for accurate reporting and compliance.
- Proper documentation and maintenance of accounts will also help in case of any future scrutiny or queries from the Income Tax Department.

**Action Steps:**
- Ensure you maintain accurate and complete books of account for your profession.
- File your income tax return correctly, including all the income and expenses as per the maintained books.
- Keep records and supporting documents for at least six years in case of any future inquiries or assessments.

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