194j income tax filing query

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RAJEEV GUPTA

Sales Manager

26 Points Posted on 17 July 2012

Hi !

I have been working in FY 2011-12 in a Bangalore company as a contractor and I provide Professional & Technical services to this company. So, my TDS is cut as per section 194J. My questions are

1. Which ITR I have to file?

2. What are the expenditures.allowed? These can be deducted from net profit(gross income),as I understand.

3. Can medical reimbursement be taken as Rs 15000 and be subtracted from Income chargeable under the head "Business and profession".

Look forward to guidance from this Forum members.

Thanks

Rajeev

Replies (6)

Karthik.M

CA Final

77 Points Posted on 17 July 2012

Hi Rajeev, 1) You should use ITR 4 to file your income tax return. 2) You should deduct all profession related expenditure from your gross income(net income + TDS deducted) 3) In my view if your medical reimbursements are of personal nature, you can't claim deduction of such expense from your professional income.

RAJEEV GUPTA

Sales Manager

26 Points Posted on 17 July 2012

Thanks Karthik. What generally are these profession related expenditures? And is there a limit to these expenditures, i.e. 40% of gross income, 50%...

Yajendra Adhikari

Chartered Accountant

334 Points Posted on 17 July 2012

1. ITR 4

2. All expenses related to your profession

3. No, not allowed. But that is applicable in case of salaried employee only. Are you providing professional service or an employee. Clarify that.

There is no limit on the %of expenses. Generally, Professional show around 60% as expenses.

Aswathi

58 Points Posted on 17 July 2012

A software professional earning professional fees for the first time during the previous year, what is the limit for maintaining the books of accounts u/s 44AA and what are the allowable expenses?? In case of maintainance of books what all have to be shown in the balance sheet??