CLARIFICATION ON TDS 194JB

When TDS has been deducted under 194JB for Retainer Fee, is it a sufficient for filing under ITR4 and claiming the 50% presumptive tax benefit.  Gross income is 8 lakhs.  The recipient is a post graduate and not professionally qualified.   

Replies (6)
Quick Summary
This discussion clarifies whether TDS deducted under Section 194JB for retainer fees impacts the ability to file ITR4 and claim the 50% presumptive tax benefit. It confirms that accountancy is a specified profession under Section 44AA(1), making it eligible for Section 44ADA. However, if opting for the presumptive tax scheme, maintaining books of accounts is not required, regardless of income level, as long as the income is below the specified threshold.

No. Sec. 44ADA is eligible for only specified professionals, as specified in sec. 44AA(1).

You have to maintain books of accounts and declare the income under normal assessment.

Thanks Dhirajlal. 

1.  The assessee is a Post Graduate in Commerce and his profession is accountant through which he has derived the income of 8 lakhs during ay 21-22.

2.  The income from profession being less than 50 lakhs, is there a need to maintain books of accounts?

I would appreciate your response considering the above 2.

 

As per list of specified profession u/s. 44AA(1); accountancy is included in it. So, he is required to maintain the books of accounts as per sec. 44AA(1).

Thanks Dhirajlal for your confirmation on his profession eligible for 44ADA.  However, his presumptuous income being only 8 lakhs during the year, why a need for maintaining books.  He is declaring 50% of the income also.  When his income is less than 50 lakhs, should be to maintain books? 

As I understand, accountancy is a specified profession and you may avail 44ada in which case there is no need to maintain books.

Thanks Poornima Madhava

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