09 January 2017
my uncle has 2 small vehicle ..his gross receipts 20000 pm ... he does not maintain proper books ..
so i want to file his income tax return under 44AE in itr 4s ...
can i do these ?
and can any one tell me the details process of filling tax return for these type income ...
02 August 2024
For filing a tax return under **Section 44AE** using **ITR-4S** for an individual with income from a small vehicle business, here’s a detailed guide:
### **Eligibility for ITR-4S and Section 44AE:**
1. **ITR-4S (Sugam)** is designed for: - **Small businesses** under the presumptive taxation schemes of **Section 44AD**, **44AE**, or **44AF**. - Businesses where total turnover does not exceed ₹60 lakhs and the taxpayer is not required to maintain books of accounts.
2. **Section 44AE** covers: - Businesses related to the **operation of goods carriage**. - The presumptive income is calculated based on the number of vehicles used in the business.
### **Eligibility Criteria for Section 44AE:**
- The scheme under Section 44AE is applicable if: - **Total number of vehicles** (used in the business) is **10 or less**. - **Gross receipts** do not exceed ₹1 crore.
### **Steps to File ITR-4S for Section 44AE:**
1. **Check Eligibility:** - Confirm that the total gross receipts do not exceed ₹1 crore. - Ensure that the number of vehicles used in the business is 10 or fewer.
2. **ITR-4S Filing Process:** - **Download ITR-4S**: Get the ITR-4S Excel utility or online form from the [Income Tax India e-Filing website](https://www.incometax.gov.in/).
- **Fill in Personal Details**: - Name, PAN, address, and other basic details in the relevant sections.
- **Income Details**: - Go to the section for **Presumptive Income** under **Section 44AE**. - Enter the **total gross receipts**. In your case, it will be ₹20,000 per month, so enter ₹2,40,000 for the financial year (12 months x ₹20,000).
- **Calculate Presumptive Income**: - **Presumptive Income** under Section 44AE is calculated at ₹7,500 per vehicle per month or actual profit, whichever is higher. For 2 vehicles, the presumptive income is calculated as: - ₹7,500 x 2 vehicles x 12 months = ₹1,80,000. - Enter ₹1,80,000 as the presumptive income.
- **Other Income**: - If there is any other income (such as interest income), enter it in the appropriate section.
- **Tax Calculation**: - The tax will be calculated automatically based on the presumptive income and other income details entered.
- **Verify and Submit**: - Review all details to ensure accuracy. - Submit the return online and generate the XML file for e-filing. - Verify the return using the e-Verification process or send the signed physical copy to the CPC if required.
### **Additional Details:**
- **Maintaining Records**: - Even if not required to maintain formal books of accounts, it's advisable to keep some basic records such as receipts for income and expenses for future reference or audit purposes.
- **No Additional Deductions**: - Under Section 44AE, you cannot claim any additional deductions for expenses or depreciation as the presumptive income is deemed to be inclusive of such expenses.
### **Summary:**
- **Yes**, you can use **ITR-4S** to file under **Section 44AE** if your uncle's gross receipts are within the specified limit and he uses 10 or fewer vehicles for his business. - **Fill ITR-4S** with the gross receipts, and the presumptive income will be calculated based on the number of vehicles and the monthly rate.
If you encounter any specific issues or need further clarification, it is advisable to consult a tax professional for detailed guidance.
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