Income tax return
This query is : Resolved
21 November 2012
i have a mobile repair shop earning 7 to 10 lakh per year from past 3 years without any accounts maintained. bt my income tax lawyer says i cant file my return above 2 to 2.5 lakh bcoz i dont have any bills. plz enlighten me if that is true
22 November 2012
Dear sir ,
1. The salaried employees are been exempted from filing the income tax return IF THEIR TOTAL INCOME IS LESS THAN RS 5,00,000 ..... So in your case if you are not salaried employee you are not covered by the exemption .....
2. From your question it is presumable that you have a business .... So i think you will fall under presumptive section 44AF of I.T.ACT 1961 ....which deals with retail business .So the taxable income will be 5% of 7 to 10 lacs ....
3. On that taxable income you have to pay the tax as per individual slab since i suppose you have a sole proprietor business ....
4. Presumptive section is applicable where the books of account are not been mentioned and they are also not coming under tax audit u/s 44AB ...so your case is ideal case for application of Section 44AF .....
5. You have to fill up ITR -4S SUGAM WHICH IS APPLICABLE FOR PRESUMPTIVE BUSINESS ....
1. The salaried employees are been exempted from filing the income tax return IF THEIR TOTAL INCOME IS LESS THAN RS 5,00,000 ..... So in your case if you are not salaried employee you are not covered by the exemption .....
2. From your question it is presumable that you have a business .... So i think you will fall under presumptive section 44AF of I.T.ACT 1961 ....which deals with retail business .So the taxable income will be 5% of 7 to 10 lacs ....
3. On that taxable income you have to pay the tax as per individual slab since i suppose you have a sole proprietor business ....
4. Presumptive section is applicable where the books of account are not been mentioned and they are also not coming under tax audit u/s 44AB ...so your case is ideal case for application of Section 44AF .....
5. You have to fill up ITR -4S SUGAM WHICH IS APPLICABLE FOR PRESUMPTIVE BUSINESS ....
22 November 2012
In continuation to Mr Basu....
As you are providing services so need to check if you have to apply for Registration under Service Tax. If falls even then you are not liable to maintain Books but will pay service tax as Rules.
The threshold limit to register for service tax is 8 lakhs whereas it is applicable on achieving turnover of Rs. Ten Lakhs.
As you are providing services so need to check if you have to apply for Registration under Service Tax. If falls even then you are not liable to maintain Books but will pay service tax as Rules.
The threshold limit to register for service tax is 8 lakhs whereas it is applicable on achieving turnover of Rs. Ten Lakhs.
22 November 2012
Agreed With views of Both Mr. Basu & Mr. bajaj.
but mr. basu ..updated tax rate U/s 44AD is 8% of turnover not as 5% you have suggested..
Kindly note & Confirm
One more point I want to add that it is better for your business to take service tax registration.
but mr. basu ..updated tax rate U/s 44AD is 8% of turnover not as 5% you have suggested..
Kindly note & Confirm
One more point I want to add that it is better for your business to take service tax registration.
22 November 2012
Dear sir ,
thanks for your comments but , i have stated SECTION 44AF not 44AD .... section 44AD IS RELATED WITH CIVILCONSTRUCTION BUSINESS.... MOBILE REPAIR SHOP IS NOT CIVIL CONSTRUCTION BUSINESS .....SIR ....HERE SECTION SECTION 44 AF IS APPLICABLE .....
thanks for your comments but , i have stated SECTION 44AF not 44AD .... section 44AD IS RELATED WITH CIVILCONSTRUCTION BUSINESS.... MOBILE REPAIR SHOP IS NOT CIVIL CONSTRUCTION BUSINESS .....SIR ....HERE SECTION SECTION 44 AF IS APPLICABLE .....
22 November 2012
Bt currently Sec 44AF no more dear...U have to talk about 44 AD only ...
23 November 2012
Mr. Basu Kindly consider -
The earlier section 44AF which read as “Profits and gains of retail business” shall become inoperative from the assessment year 2011-2012, because of subsection (6) added by way of amendment to sect. 44AF
By Finanace Act (No.2) 2009 w.e.f. 01-04-2011 sect 44AD is substituted by amendment along with 5 sub sections to facilitate the business operations of small taxpayers.
Sect. 44AF is merged with sect. 44AD
Presumptive Income Scheme’ in force from Financial Year 2010-11, requires the filing of the new tax return ‘Sugam’.
The earlier section 44AF which read as “Profits and gains of retail business” shall become inoperative from the assessment year 2011-2012, because of subsection (6) added by way of amendment to sect. 44AF
By Finanace Act (No.2) 2009 w.e.f. 01-04-2011 sect 44AD is substituted by amendment along with 5 sub sections to facilitate the business operations of small taxpayers.
Sect. 44AF is merged with sect. 44AD
Presumptive Income Scheme’ in force from Financial Year 2010-11, requires the filing of the new tax return ‘Sugam’.
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23 November 2012
THANKS MR PRAKASH KOCHAR AND CA GAGAN KHARBANDA
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