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Tax and ITR Form/ Section for Independent Contractor

Tax queries 754 views 13 replies

I am an Independent Contractor. I have a contract with a Company for 1 yr. I provide them IT Service.

The company pays me via a foreign bank. 

Which ITR Form and Section I should fill?

Thanks

Replies (13)
You may fill ITR-3 OR ITR-4 based on turnover

Am I eligible for Presumptive taxation?

How much is your turnover ?

My turnover is, 14 Lakh/ year approx. 

Then you may file ITR under presumptive Taxation with 50% profit

In the official ITR 4 Sugam, I found they mentioned that under section 

Who is not eligible to use this Return Form   

 A. This Return Form should not be used by a person who –   

 (a) is a Director in a company;

(b) has held any unlisted equity shares at any time during the previous year;

(c) has any asset (including financial interest in any entity) located outside India;  

(d) has signing authority in any account located outside India; or

(e) has income from any source outside India

 

After reading (d) and (e) I am confused wether I can fill ITR 4 ?

Does the client sending money as a fee for my IT(Software) Service will be considered as under (e)

Fill ITR-3 and pay tax after deducting expenses
If it is presumptive taxation it's sec 44AD
44AD is not applicable to service sector
Sec 44AD IS APPLICABLE . CITE CASE LAWS.
LET ME EXPLAIN THE PROVISIONS OF SEC 44AD
1.Applicable for small business and Profession need not disclose books of accounts . profession may be designated as service also.
if gross receipts 8% if in case of non digital receipts
receipts less than rs.2 crore.
There is another section 44ADA.
44AD is not applicable to small professions and service sector

Section 44AD is applicable only for business.44ADA is a simple method of taxation for small professionals .


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