Itr books maintained or not maintained

MY FRIEND HAS BOUTIQUE INCOME HE WANT TO FILE HIS INCOME TAX RETURN I.E. ITR 4

HIS LAST YEAR INCOME WAS 175000 AND NEXT YEAR RETURN INCOME IS 210000

MY QUESTION IS WHETHER THIS COMES IN BOOKS NOT MAINTAINED I.E. ITEM 51d OR FULL PROFIT AND LOSS SHOULD BE FILLED.

TURNOVER IS APPROX 700000 AND 850000 RESPECTIVELY

PLEASE HELP

Replies (3)

u/s 44AA(2) person carrying on business/ profession should maintain books of account and documents if annual income> Rs 120000/- or Turnover> Rs 10L in any one of 3 preceeding years.

But if ur friend opts for presumptive taxation u/s 44AD (8% minimum profit ) then he is not required to maintain books of accounts u/s 44AA.

So, let him make a decision and then fill the ITR 4.

As your turnover not exceeded 10 lakhs you better opt for presumptive taxation 44AD and disclose atleast 8% on turnover as profit

..

.

so if your turnover is 7lakhs ,,8% on it is 56000 so it will be okay that you can show income what you have arrived and file return..

.

.

un this case you dont need to maintain books of accounts

BUT HIS INCOME IS 175000 AND 210000 AS MENTIONED ABOVE IF I SHOW TURNOVER UPTO 10% THAN HIS TURNOVER WILL BE 1750000 AND 2100000. WHICH IS MORE ALSO HE CAN BE LIABLE FOR VAT ETC WHICH HE DDOESNT WANT 

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