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Income from salary and profession
Dear members
A person having one time professional receipts of Rs.3,00,000 on which tds u/s 194J is deducted i.e. Rs.30,000. He has some expenses in rendering that service amounting Rs.2,50,000.
The net income being Rs.50,000.
He has salary income also of Rs.8,00,000
My query is : can he claim Rs.50,000 as other income and file ITR1
Or
He has to show Rs.50,000 as professional income and file ITR4
Note: Profession is not covered under specified profession.
Please give your valuable feedback.
Thanks
Rachit
Replies (4)
He will have to file ITR-4 so that he may claim expenses deduction, and then only Rs. 50,000/- will become taxable.
according to me you need to file itr 4, not because considering professional income under pgbp but considering it under other sources. show income of 300000 under other source and claim expenses of 250000... you need to keep proof for claiming expenses for any query by i.t. dept in future.
Hello
If he claims Rs.50,000 as income from profession. Then tax become refundable as TDS is deducted on gross receipts of Rs.3,00,000
He is not required to prepare books of accounts.
If in future AO opens the case, then how can assessee justify that he claims an expenditure of Rs.2,50,000 as he is not required to prepare books of account.
Please suggest.
Thanks
Rachit
showing income under other sources will not require you to maintain books and you just need to keep proof of expenses incurred especially major expenses.
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