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Presumptive scheme and 80tta income based deduction

JIJO YOHANNAN (Student CA Final ) (89 Points)

15 October 2017

If a person offer income under presumptive scheme and he has other income under other sourc.Does he can claim 80TTA deduction as for presumptive cases income based deduction is not possible.pls suggest whether i can take 80TTA deduction in ITR 4

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21 Replies

JIJO YOHANNAN (Student CA Final ) (89 Points)
Replied 15 October 2017

44AD assessee is eligible for deductions u/s 80C, 80D, 80E. They are not eligible for deductions under Chapter VIA under the heading “C. - Deductions in respect of certain incomes” which means they will not be eligible if they claim deduction under section 80H to 80TT.

Dhirajlal Rambhia (SEO Sai Gr. Hosp.) (160322 Points)
Replied 15 October 2017

Under section 44AD an assessee is not eligible to claim any deduction under sections 30 to 38 (including depreciation or unabsorbed depreciation)

Deduction under chapter VIA are allowed to be deducted........ as they are not related to head...... income from PGBP...

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RAJA P M ("Do the Right Thing...!!!") (127072 Points)
Replied 15 October 2017

Yes...
u/s 44ad (presumptive taxation) the assessee ll be claim the deduction 80TTA...

1 Like

Kaustubh Nimkar (24 Points)
Replied 16 October 2017

Yes...The person who declere his income u/s 44 AD i.e, presumptive taxation.....can get a claim under setion 80TTA......the section 80 TTA is for the intrest recieved on the saving a/c with any banking, co opertative comoany or post office.. the maximum deduction is rs. 10000......You 1 st have to add total intrest recieved under the head income from other sources and then deduct maximum 10000 as per the provision...

Ranjit Singh (48 Points)
Replied 17 October 2017

Hello Sir Dhirajlal Rambhia will you please follow me I have some issues to discuss with you in PM.

Thank You

Dhirajlal Rambhia (SEO Sai Gr. Hosp.) (160322 Points)
Replied 17 October 2017

@ Ranjit Singh..........

1. I claimed Rs.1250 per month as electricity expense for my computers. Since I do not pay bill separately, will the ITO reject this expense?

Ans: Depending upon the total bill amount, some reasonable expenses allowed.

2. I have a Postpaid broadband connection required for work. I have missing receipts for 3 months but I have claimed the expense, will the ITO reject this expense?

No, if the amount is paid through banking channel

3 I have received a sum of Rs. 72000 into my bank account from my father(overseas worker) which I did not show as income. but now I have lost the receipt of transaction, will the ITO add this to my income?

No but confirmation from your father with his bank passbook or statements will be sufficient

4. I have take and give transactions totaling Rs 20000, will the ITO consider this as income?

Depends upon your justification/s

5. I have Rs. 23000 Net loss from equity trading which I dectucted as expense. Is this right?

Its not expenses, but adjustment of loss from one business from another business/profession is possible.

This is little bit lengthy and 'boring' process...... better hire a local experienced CA or consultant....... and get relieved from the tension.....

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Ranjit Singh (48 Points)
Replied 17 October 2017

Thank you sir for quick reply. my major concern is for point 3. since my father is paid in cash (Works in UAE) and he sends money through cannels like moneygram,walmart,xoom etc there is no passbook entries since he does not have bank account in UAE.

Dhirajlal Rambhia (SEO Sai Gr. Hosp.) (160322 Points)
Replied 17 October 2017

Totally depends upon the proofs you can provide about its authentication......... like appointment letter, salary slip, any confirmation letter from the employer etc..... can save you from such glitch.

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Ranjit Singh (48 Points)
Replied 17 October 2017

Thank you again this is my last concern. I will try to get salary slip. I hope it will help.

I have not received questionnaire from ITO yet but I see some samples floating around on the internet where bank statements of family members are asked. Is bank statements of famiy members really required. if required should I get bank statements all the family members(Father,mother,brother & me) or just of me and mom(only I and my mother were statying in the house in that particular FY, father lives abroad and brother lives in different city). Also generally statements for last three years are asked. should the statements of that particular FY be given or all.

RAJA P M ("Do the Right Thing...!!!") (127072 Points)
Replied 17 October 2017

My dear Mr Dhirajlal Sir.,

Solutions are not satified. But, Solutions with Reason and it's reasonable then only we satisfied...

In this way you are very GREAT PERSON....

Thank you for the Details solving Sir...

1 Like

Dhirajlal Rambhia (SEO Sai Gr. Hosp.) (160322 Points)
Replied 17 October 2017

Scrutiny provides the assessing officer an excellent opportunity to fully examine the complete financial affairs of the assessee for the year for which the return is being scrutinized. For doing so, the assessing officer may call for the following information:

Revised ITR of PV for the scrutiny assessment
Copies of bank statements along with explanations for all debit and credit entries,
Credit card statements and source of payment thereof,
Investments made during the year in immovable property, fixed deposits, shares, debentures, bonds, etc., and sources thereof,
Proof for claims of deductions and expenditures,
Details of claims of business expenses and genuineness thereof,
Names and addresses of sundry creditors and sundry debtors,
Details of loans, gifts taken and given,
Confirmations from sundry creditors and persons who have given loans or gifts,
Quantum of household expenses and sources thereof
Reconciliation of income with TDS certificates, etc.
Balance sheets with capital account statments for past 2 years along with the PY.
Any other information as per CASS or AIR reporting

The above is only an illustrative list of information that may be called for. The actual questions to be asked would depend upon the facts of the case and the ability of the assessing officer to probe meaningfully.

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Ranjit Singh (48 Points)
Replied 17 October 2017

Thank you sir for detailed reply.

~~I have one more question.~~

~~I first Received notice under section 143(2) for scrutiny AY 2015-16~~
~~then I received Notice under section 154 for AY 2015-16~~
~~at last I received notice under secion 142(1) AY 2015-16 .~~

~~I want to know what is the purpose of notice under section 154. does 142(1) supercede section 154 or first section 154 must be resolved. Please advise.~~

EDIT: I have come to know that 154 just an intimation that itr will be rectified by AO.

Ranjit Singh (48 Points)
Replied 24 October 2017

Hello Dhirajlal Rambhia Sir,

Today I received notice requesting information for "copies of ITR for AY 2015-2016 along with P/L,Trading and B/S and also provide the last two year ITR alongwith complete Accounts i.e Trading A/C P/L A/C and Balance sheet to this office within three days from receipt of letter"

as i see they have not asked for bank statements. what should i do? do i have to add the bank statement myself?

I have with me monthly income and expense sheet, P/L fot trading account BUT no Balance Sheet,

Sir i am an invidual person not a firm with yearly receipts just touching 10lakh is P/L, Balance sheet applicable to me?

Dhirajlal Rambhia (SEO Sai Gr. Hosp.) (160322 Points)
Replied 24 October 2017

I repeat the GOLDEN advice..........

"This is little bit lengthy and 'boring' process...... better hire a local experienced CA or consultant....... and get relieved from the tension....."

Take your own time to do homework........ before submitting any details in hurry......

Prepare complete accounts........ with BS.......... Submit whatever asked for......

1 Like