Help in ITR filing

ITR 1041 views 3 replies

Dheer

24 Points Joined April 2011

Hi Everybody, I am working as small IT contractor (or in other words a propreitery). But I am not known to complete things that a required for a full fledged Properiter since I am a struggler and newbie as a business man. Presently I have a website and provide IT services to people in Canada, etc. I get all my money transactions via wire transfer to my saving account. I have filed last ITR on salary class forms with a salary based PAN no. Please help me in below queries.

1. Since I have not complete setup of properiter, I can file my ITR within form for salary class and under Other sources column . Is this fine, because last time also I did the same. Or I can also write my income in Salaries/Pension column.

2. In salary form the income under other sources column amounts to 1 lakh 30 thousand. Do I have to give any tax in this. Means what is payable tax in this. I have a PPF account in which only 500 rs added in last ficial year.

3. If tax payable is there then do I can be in some deduction section

4. I want to also know what setup I needed to file my return as Properiter in next fiscial year.

Thanks,
Dheeraj

Replies (3)

Pankaj Arora

Learner

3134 Points Joined September 2009

You have to file ITR-4 and show your income there not as salary but as business income and claim expenses relates to your business.... you can claim deduction under schudle VI-A of income tax act.

if you have only income of 1.30Lac than no tax payable its below exemption limit... but you can file your NIL return....

U S Sharma

glidor@gmail.com

21068 Points Joined January 2010

Originally posted by : Dheer

- you have not mentioned the salary amount and wtheter tax deducted on the form 16 basis,

3. If tax payable is there then do I can be in some deduction section

4. I want to also know what setup I needed to file my return as Properiter in next fiscial year.

Thanks,
Dheeraj

1) if TDS is deducted on salary with your other income, then u dont have to think too much

2) if your salary is in parellal job with your net business, then beware that it may cause dent in your employment due to "competence with employer".

3) you have choice to establish the business and claim expenses related to the business after considering the 2) above. ( ITR 4 needed in this case)

4) you can show the aforsaid income as income from other sources and pay tax accordinly. here you have to file form ITR1/2 as applicable after paying the taxes.

choice is in your hands.

========================================================================

to establish a propietory business u have to have

1) certificate of enlistment ( trade licence) from local municipal body.

2) Profession tax enrollment

3) I E Code ( for foreign remittence, its export of services)

Guest

Originally posted by : U S Sharma
	Originally posted by : Dheer Hi Everybody, I am working as small IT contractor (or in other words a propreitery). But I am not known to complete things that a required for a full fledged Properiter since I am a struggler and newbie as a business man. Presently I have a website and provide IT services to people in Canada, etc. I get all my money transactions via wire transfer to my saving account. I have filed last ITR on salary class forms with a salary based PAN no. Please help me in below queries. 1. Since I have not complete setup of properiter, I can file my ITR within form for salary class and under Other sources column . Is this fine, because last time also I did the same. Or I can also write my income in Salaries/Pension column. 2. In salary form the income under other sources column amounts to 1 lakh 30 thousand. Do I have to give any tax in this. Means what is payable tax in this. I have a PPF account in which only 500 rs added in last ficial year. - you have not mentioned the salary amount and wtheter tax deducted on the form 16 basis, 3. If tax payable is there then do I can be in some deduction section 4. I want to also know what setup I needed to file my return as Properiter in next fiscial year. Thanks, Dheeraj 1) if TDS is deducted on salary with your other income, then u dont have to think too much 2) if your salary is in parellal job with your net business, then beware that it may cause dent in your employment due to "competence with employer". 3) you have choice to establish the business and claim expenses related to the business after considering the 2) above. ( ITR 4 needed in this case) or 4) you can show the aforsaid income as income from other sources and pay tax accordinly. here you have to file form ITR1/2 as applicable after paying the taxes. choice is in your hands. ======================================================================== to establish a propietory business u have to have 1) certificate of enlistment ( trade licence) from local municipal body. 2) Profession tax enrollment 3) I E Code ( for foreign remittence, its export of services)