My frnd has rced Consultancy fees Rs.3.85 Laks thrw Cheque & Rs.3.1 Lakh in cash , ITR 3 & No A/c ca

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A friend received consultancy fees totalling over Rs. 6.95 Lakhs, partly in cash and partly via cheque (with TDS deducted). They previously declared this income under 'Income from other sources' but are now considering filing under ITR-3 and declaring it as income from profession under the 'No Accounts' case, claiming 40% expenses. Advice is sought on the correct procedure, especially considering the shift from previous years' reporting and the nature of business and management consultancy services.

NAGESWARA RAO NARAYANA

NAGESWARA RAO NARAYANA (Querist)
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20 July 2023 Dear Sir,

My friend has received Rs.3.85 Lakhs in Cheque (TDS) deducted, 3.10 Lakhs in cash

Shall he file ITR - 3 & show receipts in No account case, declaring Exp @ 40%.

Please advise

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)
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20 July 2023 Depends upon the services offered. Whether the services offered are as specified under Sec. 44AA(1) IT act?

NAGESWARA RAO NARAYANA

NAGESWARA RAO NARAYANA (Querist)
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20 July 2023 Dear Sir

He serve in Business and Management consultancy service

This year he received in cash and cheque.

Previously he has taken all amount in cheque.Till last year by ignorance he shown in Income from other sources ( around 3.5 laks each year).No inc shown in business head.

But this year he has taken in cash and cheque.

Please advise whether he can show receipts in No Accounts case in Income from Profession , exp @ 40 %

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)
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20 July 2023 How come there was no TDS deduction last year on his professional services?
If deducted under which section?
How much TDs has been deducted this year? Under which section?

NAGESWARA RAO NARAYANA

NAGESWARA RAO NARAYANA (Querist)
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20 July 2023 Sir

TDS deducted @ 10% u/s 194 jb for last year for cheque receipt , tds deducted Rs.38K

For previous years tds deducted u/s 194 j @ 10%.

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)
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20 July 2023 For the services provided by the assessee, minimum 50% profit margin must be declared otherwise he will be required to audit his books of account.

NAGESWARA RAO NARAYANA

NAGESWARA RAO NARAYANA (Querist)
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20 July 2023 Thank you so much for reply sir

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)
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20 July 2023 You are welcome.

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