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This query is : Resolved
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
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
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.
.
.
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.
.
27 June 2013
Yes..it is recommended to file ITR-4
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
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.
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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