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Johnson Anthonidas (Querist)
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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)
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27 June 2013 You may do at your own risk. Department can deny refund unless the required details are furnished.
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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.
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Ganeshbabu K

Ganeshbabu K (Expert)
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27 June 2013 Yes..it is recommended to file ITR-4

Johnson Anthonidas

Johnson Anthonidas (Querist)
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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)
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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.

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