Section 44ad

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

04 November 2011 hi,One of my Friend earn professional receipt(who see the ESI & PF related documentation-not accountant)having gross annual receipt of 149000 less expense around 45000/- so net income 104000(149000-45000) and also receive full time salary of Rs. 80000/- annually .so his total income Rs. 184000/-.
1) can he file return under section 44AD 2) is he required to maintain book of accounts..please suggest.

CA RICHA BADALIA

CA RICHA BADALIA (Expert)
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04 November 2011 Section 44 AD applies only to Business income .Therefore the above income are not covered u/s 44AD.

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Vikas

Vikas (Expert)
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05 November 2011 Salary income is not covered u/s 44AD of income tax.

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Querist : Anonymous

Querist : Anonymous (Querist)

05 November 2011 that mean i have to file my return in ITR-4, if 44AD is not appicable then i have to prepare b/sheet and p&L a/c for such income and to disclose in itr-4 as ITR4(sahaj) is not applicable to me. am i right or there is any other way also.

Querist : Anonymous

Querist : Anonymous (Querist)

05 November 2011 vikas sir,i was mean to ask that can i show that gross receipt under Section 44AD , if yes then i can file reurn in ITR4(sahaj)

Vikas

Vikas (Expert)
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07 November 2011 No, U can't do that. One way is file ITR-2 as salary is his main income and show net receipt from other work under the head of income from other sources.