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CLARIFICATION ON TDS 194JB

Ganesan B (EXECUTIVE IN NBFC) (100 Points)

17 September 2021

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.

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6 Replies

Dhirajlal Rambhia (SEO Sai Gr. Hosp.) (160322 Points)
Replied 17 September 2021

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.

Ganesan B (EXECUTIVE IN NBFC) (100 Points)
Replied 20 September 2021

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.

Dhirajlal Rambhia (SEO Sai Gr. Hosp.) (160322 Points)
Replied 20 September 2021

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).

Ganesan B (EXECUTIVE IN NBFC) (100 Points)
Replied 20 September 2021

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?