16 December 2013
MY FRIEND HAS BOUTIQUE INCOME HE WANT TO FILE HIS INCOME TAX RETURN I.E. ITR 4 HIS LAST YEAR INCOME WAS 175000 AND NEXT YEAR RETURN INCOME IS 210000 MY QUESTION IS WHETHER THIS COMES IN BOOKS NOT MAINTAINED I.E. ITEM 51d OR FULL PROFIT AND LOSS SHOULD BE FILLED. TURNOVER IS APPROX 700000 AND 850000 RESPECTIVELY PLEASE HELP
16 December 2013
yes the books are required. However, you can also file ITR4S for this income and avoid maintaining of books till the time you achieve Rs 1 cr of turnover.
17 December 2013
Yes practically what u said is applicable once you use itr - 4s then accordingly after appropriate tax planning should be done before taking a decision in this regard.
17 December 2013
See in case of vat there are high chance to get scrutiny notices as they have become more stricter then prev period.....
so i would suggest you to show same turnover in both vat and income tax case and use itr 4 as the exp can be claimed and net profit can be brought down by appropriate tax planning in income tax.
this way if vat authorities cross check the turnover or other details then u can have consistency in it.
17 December 2013
if assesse comes under vat and filed returns under vat.. . . take turnover as per vat returns so that later there will not be any problem with vat& it departments . . what ever profit you are disclosing was more than 8% of turnover so you can go with that income..and better you go with ITR-4S where no need to maintain books of accounts . .. .
CAclubindia
