Regarding itr form query ??

This query is : Resolved

Abhishek Kumar (Querist)
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27 February 2014 Hello Experts,

I would like to know whether an Assessee (Properitor)opting Sec 44AD file ITR 4 Return ( Net Profit Ratio @ 23.3%)

Thank You..

Nikhil Kaushik

Nikhil Kaushik (Expert)
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27 February 2014 well if you have other incomes, any brought forward losses etc, then why not. you should use ITR4S.

otherwise, there is no benefit of using ITR4

Abhishek Kumar

Abhishek Kumar (Querist)
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27 February 2014 But if i dn't want to opt for Sec 44AD; then i can go for ITR-4..??
Shall i need to maintain Books of Accounts if Gross Recipts is Rs 12 Lacs in the FY..?

Abhishek Kumar

Abhishek Kumar (Querist)
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27 February 2014 But i want understand one thing that..if i show 22.5% of Net Profit why can't i file ITR-4..??
ITR-4S is restricted to 8% only?

C A S.S.Agarwal, M.Com.,LL.B,

C A S.S.Agarwal, M.Com.,LL.B, (Expert)
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28 February 2014 No you cannot file ITR 4

CA Siddhartha Bhardwaj

CA Siddhartha Bhardwaj (Expert)
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28 February 2014 Section 44AD is applicable if the following conditions are satisfied:

1. Assessee is an individual, HUF or firm.
2. Assessee is NOT a professional, NOT carrying on agency or commission business.
3. The gross receipts/ turnover DOES NOT exceed Rs. 1 crore.
4. Assessee shows a MINIMUM profit of 8% of the gross receipts/turnover.

The requirement is to show MINIMUM 8%. Assessee can show HIGHER profit also.

In your case you CAN file ITR 4S and show higher profit.

Nikhil Kaushik

Nikhil Kaushik (Expert)
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28 February 2014 if you want to maintain books and show profits more than 8%, then you can use ITR4.

CA Siddhartha Bhardwaj

CA Siddhartha Bhardwaj (Expert)
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28 February 2014 Dear Nikhil, ITR 4 will be applicable only when the profits shown are LESS than 8%. It is not applicable if turnover is less than Rs. 1 crore and profit is shown MORE than 8%.

This is evident from the fact that Section 44AD starts with

"Notwithstanding anything to the contrary contained in sections 28 to 43C...."

It over rides the general provisions. The general provisions will be applicable only when conditions of Section 44AD are NOT satisfied.