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Itr return filing for tds 194c

Amit Jha (Service) (31 Points)

06 September 2015

I work in state government office on contract. Which gets renewed again for 11 months every year.
I get lum sump amount of 50,000 per month (no salary breakup components i.e hra/conveynce/ etc etc) Just flat amount.
1 % tds gets deducted every month.
We do not get any salary slip, but it get credited in account via netbanking.
we have not recived any tds certificate but Whatever tds they have deducted is reflecting on traces portal under 194c.
so take home salary i get is 45500.
we dont get form 16, as we are not slaried , we get it as honorarium...
Can you please help me to know which return file form shall i go for?

Also what all exemptions can i claim while filing ITR?

Thanks in advance.

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17 Replies

CA Sukriti Jain (Senior, EY) (1179 Points)
Replied 06 September 2015

ITR 4. u can claim all eligible exps under PGBP

Miss Rinkal (Student) (1304 Points)
Replied 06 September 2015

It is contract income wherein TDS is deducted @ 1%. Hence it should be treated as business income and accordingly itr4 is required to be filed. You should be getting tds certificate in form16A. If not get the TDs certificate first and then file your returns

Ashok J (CA Final) (880 Points)
Replied 06 September 2015

Follow up n collect form 16a....u can claim all expenses incurred for contract work...file itr 4...u can claim any tax saving investments like.lic mediclaim ppf etc

Ishant (Pursuing CA) (58 Points)
Replied 07 September 2015

First of all the ITR Form you need to file is ITR 4/ ITR 4S. As the income you are earning will come under the head PGBP ( Business) .

I will recommend you to file ITR 4S in which you will calculate tax on the total turnover ( as mentioned in 16A/ 26AS);

For example if I take Rs.50000/- as your monthly turnover then for the year it will be Rs. 600000/- & as per the provisions of 44AD you will have profit assumed to be 8% tax i.e. Rs. 48000/- . Now reduce your deductions such as Tax saver FD, Contribution to PPF. Mediclaim & other eligible deductions assuimg that you have Rs.8000/- investment your total taxable income would be Rs.40000/- Now as per the slab rates your tax will nil and you will get all the tds as refund.

Also please mention the Interest from savings(Exempt upto Rs. 10000 80TTA) and FD's .

Happy Filing

2 Like

Amit Jha (Service) (31 Points)
Replied 08 September 2015

But Can a mba show 44ad? as there are restrictions who can not go for 44ad...

Miss Rinkal (Student) (1304 Points)
Replied 08 September 2015

@ Amit Jha:

Sec 44AD emphasises on type of buiness or profession (excluding notified profession) you have taken up and not on your qualification. Notified profession, income in nature of commission or brokerage, agency business are restricted from Sec 44AD

Notified profession are legal, medical, engineering or architectural profession or profession of accountancy or technical consultancy or interior decoration or a film artist or an authorised representative not being an employee of the organisation.

Hence after becoming an MBA it depends on what work you do. If you take work of consultancy then it is restricted by section 44AD and hence reqd to maintain books of a/cs as per Sec 44AA and maintain books as prescribed under Rule 6F

Rashi Bajaj (CA) (752 Points)
Replied 08 September 2015

Agreed with Isahant and Rinkal. In the Nature of Business row, fill contract charges. Fll TDS details as per 26AS in absence of form 16A.

Give details of any other income(taxable and exempt) and tax in the respective sheets of ITR 4S and claim refund.

1 Like

Amit Jha (Service) (31 Points)
Replied 08 September 2015

Thanks All. Amount they paid to me is reflecting in 26AS. I work in their office doing work like project management. they have given name of my profile as 'XYZ-officer'. They have submitted tds under 194-c. am I eligible under 44AD?