Income tax return

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

02 February 2012 My father retired on March-2011. He was on payroll and getting Form 16 from company, based on Form 16 he file ITR 1. Now same company has started giving him pay as professional fees from April-2011 onwards.

Please let me know which ITR form will require to file IT return for FY 2011-2012 (AY 2012-13)

CA Dileep Surya Kumar

CA Dileep Surya Kumar (Expert)
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02 February 2012 Even though you name that as professional fee with out rendering any services in a professional capacity,it is the color of salary only.

If he does not have any other income except income form otherer sources and income from house property (Only one house property), use ITR-1(Sahaj) for the assessment year 2012-13.

If he render in professional capacity , the income will be chageable under the head income from business or profession.If that be the case use ITR-4.

Querist : Anonymous

Querist : Anonymous (Querist)

02 February 2012 Dear Sir

He does not have any other income (other sources).

Only thing his company does is excluded him from salary sheet & give him cheque as a professional fees after deducting TDS monthly basis.

Kindly give your suggestion.

Thanks

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Yogesh Agarwal

Yogesh Agarwal (Expert)
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02 February 2012 I do not agree with the expert.. If you father is providing any professional service and no longer there in an employment then you should file ITR-4...

This happens in many cases where after retirement company engages their engineers, CAs, technical team members as the consultants and start paying only a consultancy fees...So one can not say it only a color of salary only...

Other experts view may be awaited..

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CA Dileep Surya Kumar

CA Dileep Surya Kumar (Expert)
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02 February 2012 @yogesh,I clearly mentioned above either cases.

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Querist : Anonymous

Querist : Anonymous (Querist)

02 February 2012 Dear sirs

Shall we use ITR-1 or ITR-4 for filing IT return.

Thanks & Regards,

Ravikant

Ravikant (Expert)
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02 February 2012 Kindly use ITR 4 only.
ITR 1 is not applicable in this case.

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B Ravi Kumar ACMA, MBA, M Com

B Ravi Kumar ACMA, MBA, M Com (Expert)
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04 February 2012 Since he is retired from the employer, he is no more an employee of the company and there is no relation of Employer and employee..

He is working in professional capacity, hence it is not treated as salary income.

You can use ITR 4 as suggested by expert Mr Ravikant.

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Querist : Anonymous

Querist : Anonymous (Querist)

06 February 2012 Thank you very much all for reply.