Which itr to be used

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

11 August 2016 My Client is a freelancer engaged in conducting teaching and life coaching classes and getting professional fees. Can he use ITR 4S for the Assessment year 2016-17?

Amol S Joglekar

Amol S Joglekar (Expert)
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11 August 2016 yes he can use ITR 4S

Querist : Anonymous

Querist : Anonymous (Querist)

11 August 2016 Dear Sir, Thanks for your reply. What about for LIC Commission agents?

Amol S Joglekar

Amol S Joglekar (Expert)
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11 August 2016 go for ITR 4, in that case

Querist : Anonymous

Querist : Anonymous (Querist)

11 August 2016 Many thanks for your quick reply. Highly appreciate if you can clarify one more point. LIC commission income is around 5 Lacs for AY 16-17 but the agent is not maintaining any books of account. What should be my answer against the qn Whether liable to maintain accounts as per section 44AA.

Querist : Anonymous

Querist : Anonymous (Querist)

11 August 2016 Dear Experts, Please advise.

Amol S Joglekar

Amol S Joglekar (Expert)
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12 August 2016 yes, he should maintain the books of accounts.

Querist : Anonymous

Querist : Anonymous (Querist)

12 August 2016 Dear Sir, ITR 4S is applicable only for business that is what my understanding. However in the case of my 1st client who is a freelance professional conducting teaching and life coaching classes which is not a business; in that case, can he use ITR 4S as mentioned by you above?

Amol S Joglekar

Amol S Joglekar (Expert)
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12 August 2016 yes, ITR4S may be used....read eligible business...44AD as well as 44ADA

Querist : Anonymous

Querist : Anonymous (Querist)

12 August 2016 Many thanks Sir. Please correct if I am wrong on my understanding on the matter.
A person who is engaged in any profession as prescribed under section 44AA(1) cannot adopt the presumptive taxation scheme of section 44AD. Since my client is not covered under Section 44AA (1), he can go for presumptive taxation option and declare 8% or more of his gross receipts as his presumptive income and use ITR 4S for the AY 16-17.

Also my understanding is that Sec 44ADA is applicable from 1st April 2017 ( AY 17-18) and in that case he can opt for presumptive taxation scheme under section 44ADA and declare 50% of gross receipts of profession as his presumptive income if his total gross receipts of profession do not exceed fifty lakh rupees.

Querist : Anonymous

Querist : Anonymous (Querist)

12 August 2016 Sir, Appreciate your early reply.

Amol S Joglekar

Amol S Joglekar (Expert)
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12 August 2016 yours is regarded as ELIGIBLE business...so you can go for ITR4S

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