27 March 2009
Respected sir,, One of my client who is living at Dubai for last 18 years. On the basis of his passport details I have checked his residential status and he is Non-resident for last ten years. In India he is having a small business of supplying spectales frames and glasses, which we want to cover under the provisions of section 44AF. At Dubai, my client is under employment and he is doing his part time business also. Now in India he want to purchase a house property for which he want to get housing loan. But most of the financial institutions demands copies of I.T. Returns for last three years. Now we want to file the return. I have preparted a computation of Income in which I have shown estimated income at Dubai and estimated income at India (u/s 44AF). For the purpose of income at abroad I think there is no any tax liability and for the income in India, we made it taxable and want to pay tax accordingly. Now my query is that - (1) Whether am I right here? (2) Beside this how I have to show it in the return form ITR-4 as perhaps there is no any column for this? (3)What action the I.T. Department will take in this matter. As we want to file this return before this 31st March, 2009 then you are kindly requested to reply it as soon as possible. Either on site or through mail - subhneelmishrA@yahoo.co.in Thanks a lot in advance.
28 March 2009
File ITR IV for the income in india and show it as normally for any resident individual. Fill relevent information Point no 51 in ITR IV and whereever asked in the return. you just have to use 2 figures 1st turnover/Gross receipt and 2nd is Profit i.e 5% of above figure and then compute tax on it add cess,interest and deposit tax... all the best
CAclubindia
