Filing of income tax return

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

20 September 2013 Dear Friends..

I need ur valuable suggestion regarding income tax return filing of one of my friend Vikash Kumar.

My friend is a labour contractor and provides the casual as well as pay roll labour under his own name to a manufacturing concern.He is registered with labour dept. as well as service tax dept. and files return regularly.

He has no assets & no liability.He just takes the money from company and distribute among his labour, profit margin is very low approx 20000 per month but he recd from the company approx 3 to 4 lacs per month. He charged Rs 55 per Mt of goods manufactured from the company.

Waiting for your valuable advice.

Regards

Vivek.

Nitesh Parmar

Nitesh Parmar (Expert)
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20 September 2013 You can show in return form as a commission income.

Querist : Anonymous

Querist : Anonymous (Querist)

22 September 2013 Buddy plz advise me the income tax return filing procedure.?
which Return i shall file.?

he has neither assets nor any type of liability.

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Asha Kanta Sharma

Asha Kanta Sharma

(Expert)
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24 July 2024 Based on the information provided about your friend Vikash Kumar, who is a labour contractor, here’s a guideline on how he should proceed with filing his income tax return in India:

### Income Tax Return Filing Procedure:

1. **Nature of Income:**
- Vikash Kumar earns income as a labour contractor by providing casual and payroll labour to a manufacturing concern.
- The income earned is from his business activities, where he charges Rs 55 per metric ton of goods manufactured by the company.

2. **Type of Return:**
- Since Vikash Kumar is earning income from his business as a labour contractor, he should file **Income Tax Return Form ITR-3** (Form for individuals and HUFs having income from a business or profession).
- This form is appropriate because it allows him to report income from business or profession, which includes income from labour contracting.

3. **Details to Include:**
- **Income from Business:** Vikash Kumar should calculate his gross receipts (3 to 4 lakhs per month) and deduct allowable expenses related to his business (like payments to labour, administrative expenses if any).
- **Profit Calculation:** Based on the difference between gross receipts and allowable expenses, he should arrive at his net profit.
- **Other Income:** If Vikash Kumar has any other sources of income (such as interest income from savings bank accounts), these should also be included in the return.

4. **Exemptions and Deductions:**
- Ensure to claim any applicable exemptions or deductions under the Income Tax Act, such as deductions for business expenses, depreciation on any assets used in the business, etc.
- Vikash Kumar may also claim deductions under Chapter VI-A of the Income Tax Act (like deductions under Section 80C for investments, Section 80D for medical insurance premiums, etc.) if applicable.

5. **Assets and Liabilities:**
- Since Vikash Kumar has mentioned he has no assets or liabilities, he does not need to report these in the income tax return.

6. **Tax Payment:**
- After computing the taxable income and applying deductions, Vikash Kumar should calculate his tax liability.
- If tax is payable, he needs to pay it before filing the return. If there is no tax payable or if there is a refund due, these details should be reflected in the return.

7. **Filing the Return:**
- Vikash Kumar should file his income tax return online on the Income Tax Department’s e-filing portal (https://www.incometaxindiaefiling.gov.in/) using his Aadhaar number or PAN.
- After filing, he should verify the return either electronically (through Aadhaar OTP, net banking, bank ATM, or EVC) or by sending a signed physical copy (ITR-V) to the CPC Bangalore within 120 days of filing.

### Conclusion:

By following these steps, Vikash Kumar can ensure compliance with income tax laws in India. It’s recommended that he consults with a tax professional or a Chartered Accountant for precise calculation of income, deductions, and tax liability, especially given the complexity of business income reporting.