I have a doubt about the incometax return filing with one contractor.
Actually he is a single person carried the work not firm, company etc......
He have completed the work ie amounted credited in form 16A Rs.3,55,099 and 2.24% deducted as TDS (7654). Now he wants to file the return. I don't know on what basis we file the return, and which return used. Also if consider Rs.3,55,099 as his income he must pay so much taxes, actually that was not his full profit amount.He must have some expenses like labour, material etc. How we can shown that total income. He want to file tomarrow itself. Please suggest its urgent for filing return
31 July 2008
He can file his return of income in accordance with section 44AD of the Income Tax Act, 1961 whereby the income is deemed to be 8% of the contract receipts in a case the receipts are less than 40 Lacs. As such calculate the income @ 8% of Rs. 355099 and file the return on ITR-4 and in case there is no other income, claim the refund.
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