he have income from business receipts RS TDS 194 j 79000 receipts RS TDS 194 j 46000
interest from savings bank RS 2642
which ITR form to choose??
whether I have to show in 44ada??
is there any need to prepare profit and loss and balance sheet?
Replies (5)
Quick Summary
This discussion addresses how to file an income tax return for a friend with business receipts, TDS under section 194J, and savings bank interest. The recommended ITR form is ITR-4 (Sugam), which is suitable for individuals with business or professional income. The conversation also touches upon Section 44ADA, a presumptive taxation scheme where 50% of gross receipts can be declared as income, and clarifies that a Profit & Loss account or Balance Sheet may not be necessary in this case.
When it comes to filing income tax returns in India, the appropriate ITR (Income Tax Return) form to choose depends on the nature and amount of income, as well as the individual's status (resident, non-resident, etc.).
you might consider the following steps:
Nature of Income: Your friend's income seems to come from business receipts, TDS under section 194J, and interest from a savings bank. The nature of income from business receipts and TDS 194J suggests a business or professional income.
Choosing the ITR Form: Based on the information you provided, it seems like ITR-4 (Sugam) might be a relevant form, as it is meant for individuals, Hindu Undivided Families (HUFs), and firms (other than LLP) having income from a business or profession. However, it's essential to carefully review the ITR forms and the specific requirements mentioned by the Income Tax Department or consult a tax professional to confirm the correct form.
44ADA Consideration: ITR-4 (Sugam) form has a section related to the presumptive taxation scheme under section 44ADA. If your friend qualifies and wishes to avail of this scheme, they can show 50% of the total gross receipts or turnover as income under section 44ADA. This scheme is available for certain professionals, including those in the field of accountancy, interior decoration, technical consultancy, etc.
For further more detailed information on this topic visit: ITR: Income Tax Return
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