Income tax

This query is : Resolved

Saurabh Gupta (Querist)
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19 August 2016 One of my known has a small kiryana shop with his father and earning income of Rs. 40000 pm. Can he file return after spreading income between father and son. Also explain other method of filing nil return

Rohit A Kadam

Rohit A Kadam (Expert)
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19 August 2016 There is no requirement to file an Income Tax return if there is no taxable income, so there is no point in filing a NIL return unless you have any refund to claim.

Saurabh Gupta

Saurabh Gupta (Querist)
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19 August 2016 Rohit ji I am asking that if income is 40000 pm which is 480000 P.A. which is taxable but they are two person sitting on one shop so how we can show without nil tax return

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Saurabh Gupta

Saurabh Gupta (Querist)
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19 August 2016 and also we want to save Rs.25000 pm we need to file nil income tax return other wise there will be problem in future

Rohit A Kadam

Rohit A Kadam (Expert)
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19 August 2016 I am assuming the kirana shop is owned by the father and is a sole proprietorship concern. treat the income as business income in the hands of father. Make the son employee of the father and pay him salary within the taxable limit. You can also invest the surplus in 80C and other avenues where deduction is available.

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Saurabh Gupta

Saurabh Gupta (Querist)
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19 August 2016 SO I UNDERSTOOD BUT NOW I NEED TO FILE INCOME TAX RETURN OR NOT, if I WILL SUBMIT RETURN WHICH FORM I WILL USE ITR4S OR ITR4 AND IF I WILL USE ITR 4S FOR PRESUMPTIVE BUSINESS THEN I CANNOT CLAIM SALARY PAID TO SON AND IF WE USE ITR4 THEN I HAVE TO MAINTAIN BOOKS OF ACCOUNT WHICH ARE NOT POSSIBLE FOR KIRYANA SHOP HOLDER

Rohit A Kadam

Rohit A Kadam (Expert)
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20 August 2016 Unfortunately you cannot avoid the legal requirement here :)

Saurabh Gupta

Saurabh Gupta (Querist)
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22 August 2016 Am i right, If any other option here

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