Return filling

Save Share

This query is : Resolved

Johnson Anthonidas (Querist)
Follow

27 June 2013 IN ONE CASE ASSESSE HAS INCOME UNDER 194J AS PER 26 AS OF TRACES.HIS INCOME IS BELOW BASIC EXEMPTION LIMIT FOR F.Y.12-13

NOW IS IT COMPULSARY FOR HIM TO FILE ITR4

CAN I FILE ITR 1 AND SHOW THE ABOVE INCOME AS "INCOME FROM OTHER SOURCES"

IF I DO SO CAN THERE BE PROBLEM IN CLAIMING REFUND

PLEASE REPLY

CA PARAS BAFNA

CA PARAS BAFNA (Expert)
Follow

27 June 2013 You may do at your own risk. Department can deny refund unless the required details are furnished.
.
In my view Income from Other Sources is a residual head. When a particular income falls under the 4 other heads, it can not be shown under IFOS.
.

Ganeshbabu K

Ganeshbabu K (Expert)
Follow

27 June 2013 Yes..it is recommended to file ITR-4

Johnson Anthonidas

Johnson Anthonidas (Querist)
Follow

28 June 2013 BUT DO I HAVE TO PREPARE BALANCE SHEET OF ASSESSE BCOZ THE ASSESSE IS ONLY A TRAINEE IN THE ORGANISATION AND PAYMENT MADE TO HIM IS UNDER SEC 194J

Aashok Kumar Sharma

Aashok Kumar Sharma

(Expert)
Follow

21 July 2025 Here’s the clarification for your case:

Since income is from Section 194J (Professional fees), it is considered income from business or profession and not "Income from Other Sources."

Therefore, it is recommended to file ITR-4 (Presumptive Business Income) rather than ITR-1.

Regarding balance sheet preparation:

If you file under Section 44AD (presumptive taxation scheme), you do not need to maintain or submit a balance sheet or detailed accounts.

However, if income is not declared under 44AD and normal business/professional income is declared, then balance sheet and profit & loss account must be prepared and submitted.

Since the assessee is a trainee with income under 194J and presumably below threshold, it’s simpler and advisable to file ITR-4 using presumptive taxation (Section 44AD), no balance sheet needed.

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