File the return in itr 4 without audit or not
This query is : Open
04 November 2011
Hello sir,
i m discussing the situation as under that i have already discuss with lots of tax expert but no one is giving me the similar / right view.
The situation is: -
I m having a sale of 30lakh from Export sale of fabric & against this sale i am having a net profit as per books is 150000/-. I am also having some other income like as rental income (Rs.200000/-), int. income (Rs.5000), draw back (Rs.150000/-)etc. Sir, my main point is here that i want to consult to you, is it possible to file the ITR without audit (as per section 44-AB) and i also don`t want to go with section 44-AD of income-tax act`1961. Sir, some of the tax expert and also CA is saying to me that we can`t file our business profit below then 8% as my net profit is coming as per books is near 5.20% (approx).
Now, my main question to you sir is it possible to file the return in ITR 4 without audit in the above situation or not?
and i also don`t want to go with section 44-AD.
Hope for the best suggestion.
Thanks & Regards
sarbjit
i m discussing the situation as under that i have already discuss with lots of tax expert but no one is giving me the similar / right view.
The situation is: -
I m having a sale of 30lakh from Export sale of fabric & against this sale i am having a net profit as per books is 150000/-. I am also having some other income like as rental income (Rs.200000/-), int. income (Rs.5000), draw back (Rs.150000/-)etc. Sir, my main point is here that i want to consult to you, is it possible to file the ITR without audit (as per section 44-AB) and i also don`t want to go with section 44-AD of income-tax act`1961. Sir, some of the tax expert and also CA is saying to me that we can`t file our business profit below then 8% as my net profit is coming as per books is near 5.20% (approx).
Now, my main question to you sir is it possible to file the return in ITR 4 without audit in the above situation or not?
and i also don`t want to go with section 44-AD.
Hope for the best suggestion.
Thanks & Regards
sarbjit
04 November 2011
Below Two condition shall be satisfied for applicability of Sec 44AA & 44AB in case of lower profit than deemed profit u/s 44AD.
1. An eligible assesse who claims lower profits and gains than profit & gains deemed u/s 44AD
AND
2.His total income(income from 5 heads) exceeds minimum exemption slab.
shall required to keep and maintains books of accounts u/s 44AA and get his accounts audited u/s 44AB.
in above case book profit is 150000 and you have other incomes also...if income more than 160000 then you are required go for Tax audit U/s 44AB.
you can't file ITR-4 without audit u/s 44AB
1. An eligible assesse who claims lower profits and gains than profit & gains deemed u/s 44AD
AND
2.His total income(income from 5 heads) exceeds minimum exemption slab.
shall required to keep and maintains books of accounts u/s 44AA and get his accounts audited u/s 44AB.
in above case book profit is 150000 and you have other incomes also...if income more than 160000 then you are required go for Tax audit U/s 44AB.
you can't file ITR-4 without audit u/s 44AB
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04 November 2011
Dear Sarbjit, tax audit under Section 44AB arises only if the total sales exceed Rs. 60 lakh.
Further, if you do not want to opt for Section 44AD, then you can file a normal return.
Accordingly, in your case, it is not mandatory to get your accounts audited.
You will have to file ITR 4 instead of ITR4S.
Further, if you do not want to opt for Section 44AD, then you can file a normal return.
Accordingly, in your case, it is not mandatory to get your accounts audited.
You will have to file ITR 4 instead of ITR4S.
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04 November 2011
Dear Vishal, kindly note that it is not mandatory to opt for Section 44AD. Every assessee carrying on retail business is not automatically covered by Section 44AD. An assessee is covered only if he opts for the same.
An assessee can choose the normal provisions of the Income Tax Act.
If he opts for the normal provisions, tax audit will be mandatory only if the gross sales cross Rs. 60 lakhs.
An assessee can choose the normal provisions of the Income Tax Act.
If he opts for the normal provisions, tax audit will be mandatory only if the gross sales cross Rs. 60 lakhs.
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04 November 2011
i Agree with your answer siddarth sir he is asking about sec 44AD provisions.....and i also told him provisions
04 November 2011
thanks siddhattha sir
yes sir i m also satisfy with your answer. your reply is same as per income tax ready reckoner n according to my view.
yes sir i m also satisfy with your answer. your reply is same as per income tax ready reckoner n according to my view.
04 November 2011
no vishal sir i m not discussing about d provision of 44ad. actually i was discussing the point of 44ab n as we are already maintained our books as per 44aa n but some ca was saying that we cant file the profit aga business income below then 8%. i know this point is lavy if i go with sec 44ad. but i m not chossing this option
04 November 2011
Hello sir,
i m discussing the situation as under that i have already discuss with lots of tax expert but no one is giving me the similar / right view.
The situation is: -
I m having a sale of 30lakh from Export sale of fabric & against this sale i am having a net profit as per books is 150000/-. I am also having some other income like as rental income, int. income, draw back etc. Sir, my main point is here that i want to consult to you, is it possible to file the ITR without audit (as per section 44-AB) and i also don`t want to go with section 44-AD of income-tax act`1962. Sir, some of the tax expert and also CA is saying to me that we can`t file our business profit below then 8% as my net profit is coming as per books is near 5.20% (approx).
Now, my main question to you sir is it possible to file the return in ITR 4 without audit in the above situation or not?
and i also don`t want to go with section 44-AD.
Hope for the best suggestion.
Thanks & Regards
sarbjit
i m discussing the situation as under that i have already discuss with lots of tax expert but no one is giving me the similar / right view.
The situation is: -
I m having a sale of 30lakh from Export sale of fabric & against this sale i am having a net profit as per books is 150000/-. I am also having some other income like as rental income, int. income, draw back etc. Sir, my main point is here that i want to consult to you, is it possible to file the ITR without audit (as per section 44-AB) and i also don`t want to go with section 44-AD of income-tax act`1962. Sir, some of the tax expert and also CA is saying to me that we can`t file our business profit below then 8% as my net profit is coming as per books is near 5.20% (approx).
Now, my main question to you sir is it possible to file the return in ITR 4 without audit in the above situation or not?
and i also don`t want to go with section 44-AD.
Hope for the best suggestion.
Thanks & Regards
sarbjit
05 November 2011
Dear Sarbjit,
As you are doing a retail business, you are covered under Sec44AD of the Income tax Act. Under this section 8% of your turnover is considered as income from business.
However, if assessee has a lower income than the presumptive profits under Sec 44AD, then you can file the same provided:
1) Books of accounts are being maintained as per Sec 44A
2) Get your books of accounts audited as per Sec 44B if your income is greater than basic exemption Limit ( Since you are an ordinary assesse your exemption limit is Rs1,60,000)
Since you mentioned your arrived at income is Rs150000, so you needn't getr your books of accounts audited.
Regarding your doubt about ITR4: Look Mr Sarbjit, ITR4 is applicable for an individual or HUF having income from Propreitary Business or Profession as given under the Act.. So, it doesn't matter whther your books of accounts were audited or not, therefore you can file ITR4.
As you are doing a retail business, you are covered under Sec44AD of the Income tax Act. Under this section 8% of your turnover is considered as income from business.
However, if assessee has a lower income than the presumptive profits under Sec 44AD, then you can file the same provided:
1) Books of accounts are being maintained as per Sec 44A
2) Get your books of accounts audited as per Sec 44B if your income is greater than basic exemption Limit ( Since you are an ordinary assesse your exemption limit is Rs1,60,000)
Since you mentioned your arrived at income is Rs150000, so you needn't getr your books of accounts audited.
Regarding your doubt about ITR4: Look Mr Sarbjit, ITR4 is applicable for an individual or HUF having income from Propreitary Business or Profession as given under the Act.. So, it doesn't matter whther your books of accounts were audited or not, therefore you can file ITR4.
15 November 2011
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