Section 44ad


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Querist : Anonymous

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Querist : Anonymous (Querist)
04 November 2011 hi,One of my Friend earn professional receipt(who see the ESI & PF related documentation-not accountant)having gross annual receipt of 149000 less expense around 45000/- so net income 104000(149000-45000) and also receive full time salary of Rs. 80000/- annually .so his total income Rs. 184000/-.
1) can he file return under section 44AD 2) is he required to maintain book of accounts..please suggest.

04 November 2011 Section 44 AD applies only to Business income .Therefore the above income are not covered u/s 44AD.

Vikas (Expert)
05 November 2011 Salary income is not covered u/s 44AD of income tax.

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Querist : Anonymous

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Querist : Anonymous (Querist)
05 November 2011 that mean i have to file my return in ITR-4, if 44AD is not appicable then i have to prepare b/sheet and p&L a/c for such income and to disclose in itr-4 as ITR4(sahaj) is not applicable to me. am i right or there is any other way also.

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Querist : Anonymous

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Querist : Anonymous (Querist)
05 November 2011 vikas sir,i was mean to ask that can i show that gross receipt under Section 44AD , if yes then i can file reurn in ITR4(sahaj)

Vikas (Expert)
07 November 2011 No, U can't do that. One way is file ITR-2 as salary is his main income and show net receipt from other work under the head of income from other sources.


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