Greetings,
Background:
My father runs a tourist taxi business where is he rents a vehicle to a Pvt. Ltd. company.
The business only has 1 swift dzire, and I decided to do the taxes for him instead of the CA, given it's a 1 car hire business, and the number of transactions are small. His total billed amount for the FY20-21 is around 13,00,000/-
While reading on the internet, I found out that I can submit form-4 under presumptive income scheme and under which , the net income, even if I take 10% margin, would be 1,30,000/- and hence 0 Tax, without having the maintain the records, but I don't really understand all the terms and exceptions of it, though https://www.winmansoftware.com/files/Business_Profession_Nature.pdf tells me I can submit under Section 44AD for Business code 11001
ps, All the income is received as NEFT transactions from the Pvt. Ltd. Company and I also pay PF and ESIC for the 1 driver we have (though not required by law, the company makes all it's vendors to pay these)
Question:
Am I really allowed so simply submit ITR-4 and get done with or do I really have to reconcile all the accounts and show balance-sheet and submit ITR-3 ? The CA had submitted ITR-3 last year, and many years preceding, and showed unusually higher profits, showing 13,00,000 capital in hand accumulating over years, that doesn't really exists.
I am very cautious of all these steps given the small scale of business, and the accumulated, non-existent capital on the balance sheet.
pps, really sorry for the long post.
CAclubindia
