My relative had a propritetorship business between April 2005 to March 2010. ITR4 was filed for FY 2009-10. (AY2010-11)
Last financial business (for AY2011-12), no business transaction was carried out.
Does ITR4 still need to be filed, or can a ITR1 be filed instead. Total income from other (non-business) sources is less than 1.5 lakhs.
If ITR4 needs to be filed, must audit be done ?
mere no business transaction does not indicate closeure,
collect data about neutralization of balance sheet of business, i.e no debtors/credits/ assets/liabilities,
even recomended to file ITR4, as some of previous due payments must been received by him in preceeding year.
ITR1 is for salaried only, in case of shut off business in last years he has to file ITR2 ( strictly no business income)
Even if no transcations wer made bt still for AY 11-12 u need to file ITR-4 as correctly answered by US SHARMA
About ITR agree with above.
and
About Audit, is not required as provisions of 44AB Audit requires only Tournover crossed Rs.60lakhs.
in case of profession Gross receipt is exceed Rs. 15lakhs. for the AY 2011-12.
yes agrreed with all..... though you dont have any transaction you have to file ITR-4... and for partnership firm tax audit limit is 60lakhs..
This was a small time proprietorship run by a senior citizen. Business has effectively closed down for past three years. This was there was ZERO business income.
Only income was FD
and some pending tax return.
So how does the person effectively get out of filing returns. This senior citizen's income is not even in the taxable bracket.
CAclubindia
