Which itr form to use?

ITR Filing 607 views 2 replies

Sanjaya

Engineer

30 Points Posted on 05 March 2013

Dear Tax Gurus,

I am a Software Consultant providing personal consulting services. I dont have a company or anything like that - just personal consulting which I get paid nominally. My annual income last year was around less than 5 Lakhs from this consultancy. Can I use Form ITR 4S - SUGAM to file returns? It looks to me like I comply with the requirements. Wanted expert advice.

Thanks

Sanjay

Replies (2)

Ankit

C.A.-Student

680 Points Posted on 05 March 2013

In my personal view , you are carrying a profession read sec44AA of act, so you cannot file ITR4S sugam as this form used for assessee covering u/s 44AD and 44AE, which is for business and not profession. There is distinction between business and profession.

Also

does Rs 5lac is profit or 5 lac revenue??

If it is revenue then file ITR4 giving full details of income and expenditure

If it is profit, then check the revenue if it is more than 15 lakh then you should get accounts audited and if this less than 15 lakh then normally iTR4 apply

You can wait for others reply also

thanks

Hanish Chaudhary

Chartered Accountant

333 Points Posted on 14 March 2013

In terms of Sub Section (6) of Section 44AD, you cannot use presumptive taxation for a Profession. In my view, giving personal consulting of any kind is a pure profession. It hardly matters, whether you in giving it in capacity of individual (proprietor), or in form of partnership or company. You should file your return in Form ITR - 4.