Query related 44ad

You can file the return of income u/s 44AD only if you are running the business of beauty parlour in the capacity of Individual, HUF and Partnership Firm. In case you are running the same under LLP than you can't file the return u/s 44AD. However in order to file u/s 44AD your total turnover or gross receipts must be less than Rs. 60 Lac Per Annum.

Thus if the above two conditions are not satisfied than you have to file the return in ITR-4. Moreover if conditions are satisfied even than you have a choice to file return in ITR-4 or ITR-4S as per your wish depending upon the situations that whether you are maintaining the books of accounts or not. and if you would like to disclose the details of accounts than go for ITR-4. As Sec 44AE is not applicable if u are filing the return in ITR-4S and your gross receipts are less than 60 lac but 44AE is applicable on lower limits if you are filing in ITR-4

If you are going for ITR-4S than you must declare a income of atleast 8% of the total gross receipts otherwise you are liable to audit books of accounts and a report of audit u/s 44AB is also required.

thanx for answer in very deeply.this is very useful for others.plz tell me 1 more thing that, my turnover 3,83000/- my n.p.is 1,76,180/-(46%).i maintain books but i want to fine ITR4S using u/s 44AD.because this section useful if my case caught in scrutny.can if i file  ITR4s ?

Vikas Vishwakarma is correct

You must file ITR-4 as you are running a profession not a business. I forget to consider this point while giving advise to your issue.

Sec 44AD serves on the basis of presumptive business only

Thanks rahul & vikas but what is basic difference between profession & business.beauty parlour is covered under service sector code 0702 as per incometax return form.then what is your answer ?

@ Rupesh

I will tell you the basic and clear cut difference between the Business & Profession

Business: It includes the trading of Goods & Services i.e. Sale & Purchase

Profession: Any act which requires knowledge & Skill of some individual i.e. without which the act can't performed.

In your concern, there is no Sale & Purchase but it's a application of knowledge & Skill of beauty.

Hope now you can easily differentiate the concerns between these two

Income Tax Code like 0702 are the classification made according to the requirements of the Department. These classification will not made any difference among Business or Profession. However you have to select your appropriate code which is relevant to your Business or Profession while filing up the return.

ok means beauty parlour is a profession right ? as rahul says it s application of knowledge but pls tell me if we file return of it u/s 44ad with code 0702 then what will happen after submission of return

vikas sir apne pehle bhi bahut help ki he for it thanks

actuly some times in mind lots of questions are arise and we know its solution but till we feel that we have to take the advantage of  expert for it so sorry if some time i ask questions like ideot .

means we can cover the following in profession pls tell me

beauty parlour income - personaly go to client home and give service

consultant service - based on b.com degree

stiching income - from home

we can file the above return u/s 44ad ???????????

its realy true that when we have not complet knowledge of law then lots of question arise in mind

IT WILL BE A DEFECTIVE RETURN