30 May 2012
PLEASE HELP ME TO THE FOLLOWING, WHILE FILING THE I.T.R. 4 1. ARE YOU LIABLE TO MAINTAIN ACCOUNTS AS PER SECTION 44AA ? OR WHEN APPLICABLE U/S 44AA
2. METHOD OF ACCOUNTING EMPLOYED IN THE PREVIOUS YEAR OR WHAT IS MERCANTILE / CASH
30 May 2012
1. Section 44AA requires an assessee to maintain books of accounts in the following cases:
(a) Person carrying on legal, medical, engineering or architectural profession or the profession of accountancy or technical consultancy or interior decoration have to maintain books of accounts.
(b) Other persons have to maintain books of accounts if income from business or profession exceeds Rs. 1,20,000 in any one of the three preceding years.
2. Mercantile/Cash Basis (a) Cash basis of accounting means recording incomes and expenses on receipt or payment basis, as the case may be.
(b) Mercantile basis of accounting means recording expenses and income on accrual basis, i.e., when the expense is incurred or bill is raised, or payment made/received, whichever is earlier.
31 May 2012
ITR 4S is for an assessee who falls within the perview of Section 44AD.
In case of a trader, he should fulfill the follwoing conditions:
1. He should be an individual, HUF or firm (but not a LLP). 2. His turnover must not exceed Rs. 60 lakhs (1 crore w.e.f AY 13-14). 3. He should declare income @ 8% of the turnover.
31 May 2012
dear siddhartha sir, in my case: the said individual is a electrical contractor who has a proprietory company and does not maintain any office for books of accounts then what form should i use i.t.r 4 or 4s ?
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