Presumptive income section 44AD or 44ADA

ITR 715 views 3 replies

Shruti Modak

3 Points Joined July 2017

Hi
I am selling knowledge videos online which i get these made from my husband. Assume my income from sale (Turnover) for FY 2015-16 is 4 Lac & for FY 2016-17 is 6 Lac which directly comes into my joint bank Account (my & My husbands JBA) .(I have no other income).

Can i File a return (ITR4S) under section 44AD (as Presumptive Income) Can i show 8% of T/O as my income (without having to maintain details of Expenditure) or should i Show the actual 30% of income (roughly) if its actual then should i have to maintain details of Expenditure?

Most importantly will it be treated as BUSINESS INCOME and allowed under 44AD (or will be treated as PROFESSION under 44ADA and treated as 50% of T/O a income?) under two scenarios
1) I pay Royalty to my husband (10% of Sale) for providing me videos
2) I buy Videos from husband (say for 50,000)
and sell it online

I want to file my return under 44AD ( @ 8 of T/O) for both FY's

Please advice me can i do so? or will whole income will be treated as my Husbands income. (although he just give me Videos for some consideration & doesn't look after business of selling marketing etc)

Please also quote case law or section or rule (if possible & relevant)

Replies (3)

neeraj gupta

1138 Points Joined March 2017

Yes you can use 44AD. Any particular reason showing transactions with husband. 44AD takes turnover into consideration. Expenses won't have much role.

neeraj gupta

1138 Points Joined March 2017

It will be treated as business income if you are running it as a business, that means you might not have skill for making these videos but you would have hired employees or subcontracted etc. In case you are using your own skills to make videos then it is professional.

Shruti Modak

3 Points Joined July 2017

Hi, Neeraj Gupta, Thanks for Your Response (cum Confirmation).

Why Transaction with Husband ? ... because this is a Fact (He only prvides me videos), yes i am not that skillful.

Just need help on below as well

As per 44AD - Asesse need not to maintain the records (specially of Expenditure - In my view its a special previlage of this section) having said that can Department ask for details of expenditure ??? (Details of Turn over, i dont mind)

More over in Filing TR4S

In PART A - Is it mandatory to mention Mobile no. in A17 & A18

Further

Nature of Business ?? (Trading i guess)
Code : ????
Name of Business : ??? (Website name?? )
Descripttion : ??? (i guess Buying & Selling of goods, (Videos will be treated as goods, )

Am i supposed to fill below as well

Amount of Total Debtors, Creditors, Stock in Trade (SIT), Cash Balalnce (E - 7,8,9,10, respectively) (is it mandaroty to give this ?)
Here they say information under E-7 to E-8 must be as on 31 March [does this mean that E9 & E10, (SIT & Cash balance respectively) be as on date of filing of Return ???
and cash balance means : Cash in Hand (or it also include cash at Bank)

Please help me on above queries..(Lots of thanks in Advance )