In ITR 4 u/s 44ADA what amount we shoud show under amount received in bank account.

In ITR 4 under heading -

E3. COMPUTATION OF PRESUMPTIVE INCOME FROM PROFESSIONS UNDER SECTION 44ADA has 3 section-

 a Through a/c payee cheque or a/c payee bank draft or bank electronic clearing

system or prescribed electronic modes received before specified date

 b. Receipts in Cash

 c Any mode other than a and b

 If we generate a bill of Rs 1,00000

and 10% TDS u/s 194J deducted and we received Rs 90,000 in bank via online transfer.

Now my question is that What amount we should show in Section E3 a ?

as per rule should show gross receipt that is Rs 1,00000 but in bank we received Rs 90,000 only. If we show Rs 90,000 in E3 (a) to match the bank statement then where we will show TDS amount of Rs. 10,000

Replies (4)
Quick Summary
This discussion clarifies how to report amounts under Section 44ADA of ITR 4. When you receive payment via bank transfer after TDS deduction, you should report the gross receipt amount (e.g., £100,000) in section E3(a), not just the amount that landed in your bank account (£90,000). The deducted TDS (£10,000) should be claimed separately in the 'Taxes Paid' section. This approach aligns with your Form 26AS and correctly reflects your total turnover.

  • Report ₹1,00,000 in E3(a).

  • Claim ₹10,000 as TDS in the Taxes Paid and Verification schedule.

  • The mismatch between bank statement and gross receipts is normal and reconciled through Form 26AS.

Your turnover that is to be declared as per the bill generated is Ra, 1 lakh. Even though you received Rs, 90K in bank the TDS account gets credited by 10k, so no mismatch.

But TDS Amount will get credited in next financial year then it is ok?

Date of credit is irrelevant w.r.t year in which the transaction being reported.

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