One of my client runs a TV repair shop. His gross receipts are Rs. 1,80,000.00. After paying shop rent and other expenses, business income is Rs. 1,35,000.00. Income from other sources is about Rs. 1,00,000.00. Total Income being taxable.
Now my Query is :
1). His income being more than 8% of gross receipts, does he need to maintain books of accounts. If yes, what should be filled in ITR 4 as he doesn't own any raw material or any business asset.
09 July 2011
he can file ITR 4S by declaring Income at 8% of Gross receipts, no need to maintain accounts and no need to get books audited as receipts dont exceed 60 lacs.
In normal conditions as mentioned by you.. he will have maintain books,
10 July 2011
There is no need to maintain accounts. He can file the ITR if the income is taxable.
In your case the profit is above 8% so you are covered by the Section $$AD and your turnover is also below the limit as prescribed u/s 44AB. Therefore, you need not get your accounts maintained and even may not get is audited but as per Section $$AA if the condition of your profit is fulfilled then you have to maintain the account.
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