Small professional income-how to file return

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ankit (Querist)
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27 August 2011 I have earned small amount of profesional income of Rs 60,000 on which TDS Rs 6000 was deducted,apart from salary,so in order to claim refund i need to file the reutrn.Here i want to know am i suppose to file ITR-4 or can i file it through ITR-2?

Secondly, Also I have not maintained any books as it was a one time contract so can i claim expenditure on same,like transport expenses during contract period and small office expense like telephone ,postage etc.

Thirdly, Do I need to prepare b/s and all to fill ITR-4 figures

Fourthly, do i hav eto preserve the bills for all the expenses I am claiming or can i claim it on arbitarily basis being on etime contractual obligation served by me.

pls help!
thanks in advance

CA. Nitin Agrawal

CA. Nitin Agrawal (Expert)
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27 August 2011 Dear Ankit

Section 44AA . MAINTENANCE OF ACCOUNTS BY CERTAIN PERSONS CARRYING ON PROFESSION OR BUSINESS.

(1) Every person carrying on legal, medical, engineering or architectural profession or the profession of accountancy or technical consultancy or interior decoration or any other profession as is notified 707 by the Board in the Official Gazette shall keep and maintain such books of account and other documents as may enable the Assessing Officer to compute his total income in accordance with the provisions of this Act.

(2) Every person carrying on business or profession [not being a profession referred to in sub-section (1)] shall, - (i) If his income from business or profession exceeds one lakh twenty thousand rupees or his total sales, turnover or gross receipts, as the case may be, in business or profession exceed or exceeds ten lakh rupees in any one of the three years immediately preceding the previous year;

Ans:
1. ITR-4
2& 3. Depens upon your profession & Gross
Receipts/income

4. Yes

now cheers

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

C A S.S.Agarwal, M.Com.,LL.B, (Expert)
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27 August 2011 You need maintain any account.

File ITR 4 to claim the refund

It is up to you to prepare the Balance Sheet. If you prepare the B/S it is in your interest

ankit

ankit (Querist)
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27 August 2011 Thanks to all for the help!

but i have two doubts how do i fill the ITR-4 because it asks for cash balance figure what shall i write up as i have no books of accounts.
secondly,sheet 4 nature of business asks for trade name and nature of business what should i write there as i am not registered in any name.
by profession i am a journalist working on salary and it was just one time professional assignment on which TDS u/s 194J was deducted.?

Aashok Kumar Sharma

Aashok Kumar Sharma

(Expert)
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25 July 2025 Here's a simple step-by-step answer to your queries on filing income tax return for small professional income:

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### 1. **Which ITR form to file?**

* Since you earned professional income (even if small amount), you **should file ITR-4** (also called Sugam) if you want to declare presumptive income under Section 44ADA (if applicable).
* Alternatively, if you do not want to opt for presumptive taxation and have no other income from business/profession, you can file **ITR-2** (which is for individuals with salary and income from other sources but no business income).
* Since you have **salary + one-time professional income with TDS**, ITR-2 is simpler and suitable.

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### 2. **Do you need to maintain books of accounts?**

* For small professional income less than ₹50 lakh, under Section 44ADA, you can declare **44% of gross receipts as income** without maintaining books.
* But since it’s one-time income and no regular business, no need for detailed books.

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### 3. **Can you claim expenses?**

* Under presumptive taxation (Section 44ADA), no separate expense claim is allowed — the income is presumed to be 44% of gross receipts (i.e., 56% considered expenses).
* If you do not opt for presumptive scheme and want to declare actual income after expenses, you must maintain and produce proof of expenses like transport, telephone, postage, etc.
* Without books or bills, it's risky to claim expenses arbitrarily.

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### 4. **Do you need to prepare Balance Sheet (B/S)?**

* **No**, if you are filing under presumptive taxation scheme (ITR-4 with Section 44ADA), you are **not required to prepare Balance Sheet**.
* If filing under ITR-2 and declaring actual income with expenses, no Balance Sheet is required as you are not carrying business but professional income.

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### 5. **Filling details in ITR-4 form**

* **Cash balance**: Since you have no books, you can enter zero or approximate cash in hand.
* **Nature of business/profession**: Write "Journalist" or "Freelance journalist" under nature of profession. For trade name, you can write your own name as you are an individual and not registered under any business name.

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### **Summary advice**

| Query | Advice |
| ---------------------- | --------------------------------------------------------------------------- |
| Form to file | ITR-2 (simpler) or ITR-4 (if presumptive taxation opted) |
| Maintain books or not | No need for books for one-time income under ₹50 lakh |
| Claim expenses? | Only if actual expenses can be documented, otherwise use presumptive scheme |
| Prepare Balance Sheet? | Not required for small professional income |
| Filling cash balance | Enter zero or approximate value |
| Nature of business | Mention "Journalist" or "Freelance journalist" |

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If you want, I can help you draft a sample ITR-4 filled format for your situation. Would you like that?

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