Return Filing U/s 44 Af

ITR Filing 2270 views 2 replies

Gaurav

Ca finial

27 Points Posted on 14 August 2010

If any firm engaged in retail his total turnover is below the audit limit he want to declare his income 5.5% (U/s 44 Af) then return filing Itr V

What is proces of filing of ITR V u/s 44 Af (Main problem facing there are no balancesheet & P&L and coloum of U/s 44 Af income shows after salary & intrest , then not 5.5% it is after salary & intrest. )

Ex.

Turnover 38 Lac = Income 209000 (5.5%)

Less Salary 120000

Les Intrest 80000

Balance 9000

Then what Income shows 209000 or 9000 Colum of U/s 44 AF

What treatment if show 9000/- then not know total income of turnover .

Please solve my problem with itr v example.

Replies (2)

Amit Sarawgi

C.A. Final & Arical

101 Points Posted on 14 August 2010

I am not able to understand your question, how can a firm has profit u/s 44AF because it has to maintain book of account and account must be audited.

Pankaj Gulati

Tax Advisor

81 Points Posted on 15 August 2010

I think with ITR V, u mean ITR 5 :)

On the first page of ITR 5, please opt NO in front of ‘Are you liable to maintain books of accounts u/s 44AA’

In Part A-BS col 6 (no account case), write the amount of Drs, Crs, SIT and Cash in hand

In Part A- P&L in col 52 (no account case), write TO as 38 lac, GP as 209000, Exp. as 200000 and NP as 9000/-

Be sure to opt for code 0202 ‘Retailers’ in the drop down menu under the head ‘Nature of business’. Here u can write a small note like Section 44AF opted. Profit before Interest & Remuneration to partners is 5.5%. This much text is allowed by mostly all e-filing software in this area of ITR. I am asking u to write this so that ITO may not say that this is ur after thought.

I don’t think there is any better way of expressing income u/s 44AF in ITR 5.

The above opinion is based keeping in view that u will e-file this return (which I recommend). If u r filing it through paper, u can write anything any where to express yourself :)