Applicability of return

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payal (Querist)
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17 February 2016 one of my client is worker (individual). He works under builder supervision. and he earns Rs. 600/- per day wages. After a few month he move to other builder & earns Rs. 600/- per day. He done this type of work.
My question is applicability of ITR . whether ITR 4 or ITR 4S applicable. ?

Suresh Ramaswamy

Suresh Ramaswamy (Expert)
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17 February 2016 The income of the worker is not income from business or profession - it is salary income as he is a daily wage earner. ITR 4S would be appropriate.

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payal

payal (Querist)
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18 February 2016 Thanks for reply. But there is no employer employee relationship between builder and worker so how can we taxable it under salary ? income from worker is taxable under what head of income and which ITR is applicable ? pls. clerify.

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Suresh Ramaswamy

Suresh Ramaswamy (Expert)
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18 February 2016 If the worker receives the wages by cheque and if he maintains proper books of accounts ( probably not) then the affairs can be arranged to show profit from profession. However does the employer deduct tax at source under 194 C of Income Tax Act, 1961. If the entire income is received in cash, then it is best to show the receipts as "Income from Other Sources" and file the return in ITR - 4S. If you can arrange proper invoices for income received and vouchers with proper supportings for expenses, then you may opt to show the income as Profits & Gains of Business or Profession and file ITR 4, else show the receipts as "Income from Other Sources" and file the return in ITR - 4S.

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