Itr

This query is : Resolved

ruchita (Querist)
Follow

04 December 2017 HELLO SIR.....I want to file Income Tax return .i have some income from EMBROIDERY JOB WORK and some for AGRICULTURE INCOME ( more than rs.5000). Please suggest, which ITR form i should be use and can i file return of income under presumtive scheme u/s 44AD or not

Sumeet

Sumeet (Expert)
Follow

05 December 2017 Yes, you can show embroidery job work income under section 44AD but since your Agricultural income is more than 5000, you need to file ITR 3.

RAJA P M

RAJA P M (Expert)
Follow

05 December 2017 No... You can't file ITR u/s 44ad as per your above said way of income with Agriculture Income (Above 5k). So, You ll file ITR 3 (AY 17-18).

Upgrade to CAclubindia Pro. Subscribe Now!

Sumeet

Sumeet (Expert)
Follow

06 December 2017 Hello sir, with due respect I don't think there is any such condition mentioned in section 44ad, that if your exempt income is more than 5000 you cannot take benefit of section 44AD.
I agree that in such case ITR 3 need to filed in place of ITR 4, but you can still declare your business income u/s 44ad by filing ITR3.
So according to me, business income from embroidery can be declared u/s 44ad and ITR applicable will be ITR3.

RAJA P M

RAJA P M (Expert)
Follow

06 December 2017 Dear Mr Sumeet Sir.,
In my view.,
In ITR 3 the option of sec 44ad is secondary. Not main option...

If your view is correct way then how to show the details in ITR 3. please tell me which columns we fill the details in ITR 3...

Sumeet

Sumeet (Expert)
Follow

06 December 2017 You need to show profit from business under Schedule BP clause 1,4 and 35(i). Also in Schedule BS and Schedule PL, instead of filling complete balance sheet and p&l account, just enter the short details under books not maintained column.

RAJA P M

RAJA P M (Expert)
Follow

06 December 2017 As per your view.,

Schedule BP:
A) From business or profession other than speculative business and specified business
- Computation of income from business or profession

1) Profit before tax as per profit and loss account (item 45 and 53 of Part A-P&L )

* Primary Income Details* (Books maintained case in 45 / If not maintain Books of accounts it's in 53)

5.Profit or loss included in 1, which is referred to in section

44AD/44ADA/44AE/44B/44BB/44BBA/44BBB/44D/44DA/Chapter-
XII-G/ First Schedule of Income-tax Ac
*Secondary Income Details* (As above said 45 or 53 with column 5)

35 Profits and gains of business or profession deemed to be under -
i) Section 44AD ....

ITR 3 : In case we have any income from main business (45 / 53) plus any other income (5) & 35(i) then only we can file the return...

If not fill main business detas and fill only sec 44AD details and filed. After its treated as defective return...

Please correct if I'm wrong..!
Also give your opinion...

Sumeet

Sumeet (Expert)
Follow

06 December 2017 In column 1 of Schedule BP we need to fill total business income (i.e. both 44ad income and normal business income).

Upgrade to CAclubindia Pro. Subscribe Now!

Sumeet

Sumeet (Expert)
Follow

06 December 2017 In Column 4 and 35 we need to fill only 44ad income. I myself have filed returns for business having only 44ad income and they were processed successfully. Hope this helps

RAJA P M

RAJA P M (Expert)
Follow

06 December 2017 ( Hope this helps)
I don't get any idea for above. I'm not filed any file for above said way. I filed "No books of accounts" head instead of 44ad ITR 4s /4...

But, I ll try to this one and consider my seniors....