CCI Online Learning
What do you want to learn today?
     
CIBIL

Upgrad

Share on Facebook

Share on Twitter

Share on LinkedIn

Share on Email

Share More

Re ITR 4


KIYOSH (TAX CONSULTANT)     22 May 2011

KIYOSH
TAX CONSULTANT 
 15 likes  332 points

| My Other Post

A person doing trading activity having turnover around 20 Lacs. He is maintaing books of account & income is above 8% of turnover.

Q : Should he use ITR 4 OR ITR 4S ?

Please clarify.

Thanks in advance

avater

Riyaz (accountant)     22 May 2011

Riyaz
accountant 
 25 likes  305 points

View Profile | My Other Post

I think it is ITR-4 becoz its a business activity

avater

CA ADITYA SHARMA (CA IN PRACTICE )     22 May 2011

CA ADITYA SHARMA
CA IN PRACTICE  
 2145 likes  16719 points

View Profile | My Other Post

ITR 4                                 

avater

Devendra (Chartered Accountant)     22 May 2011

Devendra
Chartered Accountant 
 428 likes  4750 points

View Profile | My Other Post

THE ASSESSEE CAN FILE HIS ITR IN ITR-4S BY SHOWING PROFIT @ 8% ON SALES.  IF THE ASSESSEE WANTS TO SHOW A PROFIT LESS THAN 8% OF SALES, THEN HE WILL HAVE TO GET HIS ACCOUNTS AUDITED FROM A CHARTERED ACCOUNTANT.


 

REGARDS,

DEVENDRA K

avater

Arvind Sharma (ACA)     22 May 2011

Arvind Sharma
ACA 
 180 likes  1427 points

View Profile | My Other Post

Agree with Devendra

avater

Naina (CA Student)     22 May 2011

Naina
CA Student 
 11 likes  477 points

View Profile | My Other Post

I think ITR - 4 should be used in this case because the assessee is maintaining books of accounts. ITR - 4S is to be filed where no books of accounts are being maintained and income is presumed to be 8% or more. 

avater

Balram Begari (Accountant)     22 May 2011

Balram Begari
Accountant 
 11 likes  122 points

View Profile | My Other Post

Dear Devendra,

 

I dont think audit is required when his business turnover not crossed 60lac.

so i dont't he should go for audit unnecesary.

 

avater

Vivek Mehta (CA, DISA,CS, MBA) (I am in Practice and also giving understanding and guidance to the Students of CA Final and IPCC for various subjects esp for Direct Tax.)     22 May 2011

Vivek Mehta (CA, DISA,CS, MBA)
I am in Practice and also giving understanding and guidance to the Students of CA Final and IPCC for various subjects esp for Direct Tax. 
 88 likes  1629 points

View Profile | My Other Post

ITR 4S is required if the assessee is declaring the income on presemptive basis. In case of declaring higher income no need of audit and return can be filled and shall be filled in ITR 4 only

avater

CA. Manav Goel (CHARTERED ACCOUNTANTS)     22 May 2011

CA. Manav Goel
CHARTERED ACCOUNTANTS 
 13 likes  351 points

View Profile | My Other Post

If he want to opt only presumptive taxation, he should file Itr 4S, otherwise Itr 4 

avater

Saurabh Aggarwal (Chartered Accountant)     23 May 2011

Saurabh Aggarwal
Chartered Accountant 
 16 likes  346 points

View Profile | My Other Post

Dear Kiyosh

In your case since the assessee is a trader ,the assessee has two options.

Case 1. He may Complute Income on Presumptive Basis u/s 44AD for A.Y. 2011-12

    In this case he may take income = minimum 8% of total turnover. If he takes income less than 8% he has to get accounts audited u/s 44AB by a CA. He has to file ITR4S if compute income on presumptive basis.

Case 2. He may maintain proper books of Accounts.

In this case his income shall be actual book profit but in case it falls below 8% of turnover, again he has to get accounts audited u/s 44AB. He has to file ITR 4 in this case.

You may now select the option as per your suitability,

Thanks & Regards

Saurabh Aggarwal

1 Like

Leave a reply

Your are not logged in . Please login to post replies

Click here to Login / Register  


Bajaj Finserv

Related Threads


Loading

Trending Tags
X

Daily Latest Updates in your Mail Inbox