Disclosing expenses for ITR

Im a software consultant and filing ITR-4 under presumptive income from profession u/s 44ADA.

The company i consulted for, deposited the amount after TDS to my bank account.

Due to covid restrictions, I could not use the money in my bank account and had to rely on my family for the expenses (cash and purchases using their bank account).

For ITR, I have provided gross receipts as Rs.11L and presumptive income as Rs.5.5L. 

1. Would I be questioned, as my bank account (linked to my PAN card) does not show any expenses and has the full Rs.11L in it.

2. How can I disclose the expenses that I have made by borrowing cash and purchases from my family members bank account.

 

Replies (4)
Quick Summary
A software consultant filing ITR-4 under Section 44ADA has received their full consultancy fees into their bank account but incurred personal expenses using family funds due to COVID restrictions. They are concerned about their bank statement not reflecting these expenses and are asking how to disclose them in their tax return. The advice given is that under Section 44ADA, expenses don't need to be proven, and the presumptive income can be declared without detailing expenditures.

You can show 5.5 lakhs without giving any proof of expenses because presumptive income u/s 44ada doesn't require any proof.
Whatever expenses you have made , show loan from fromm someone and square-off the same after booking of expenses.

Thank you for your response.

If I were to show these loans from family, where can I do so in ITR-4 form?

Would this be in Financial Particulars. Under which field do I specify the cash borrowed and is it same for purchases made using family member's bank account.

 

Not required to disclose any expenses.
Just File return u/s 44ADA disclosing that 11L and 50% as profit

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