Queries while filing itr

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

06 August 2015 Hi,

I have below mentioned questions in regards to file my ITR. Can you please help me with the solutions to the same?

1)I am working as a consultant with a company and TDS on professional fee is deducted @ 10%. Which ITR form should I use? Will ITR 1 will be applicable? (As I am a consultant there and not an employee on papers but it is like any other full time regular job)

2)I taught home tuition's for a month or 2. Where will that income be included? Under which head and form? That amount is extremely nominal.

Thanks and Regards,

CA John Abraham Austin ACA

CA John Abraham Austin ACA (Expert)
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07 August 2015 You will have to file ITR-4.
The income you receive as a consultant will be treated as 'Profits & Gains from Business or Profession'.

Regarding hoe tuition, that also will come under PGBP.
So, you will have to file ITR-4.

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Querist : Anonymous

Querist : Anonymous (Querist)

06 October 2015 Okay...I was filling up the form and faced below mentioned difficulties:

1) Nature of business to fill up the codes, I am a journalist/reporter and working on consultant basis. Which code/category should i select in Nature of business

2) Nature of business/code for giving home tuitions. As i have given tuitions for part of the year too.

3) It asks to fill all balance sheet detailsin subsequent pages....although i work on consultant basis but my remuneration is like salaried employee. I don't have any other xpenses to claim or a balance sheet business. What should I do?

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Asha Kanta Sharma

Asha Kanta Sharma

(Expert)
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10 August 2024 When filing your Income Tax Return (ITR) in India, it's crucial to choose the correct form and fill it out accurately based on your income sources and business activities. Here’s how you should handle your queries:

### 1. Choosing the Correct ITR Form

**Consultant with TDS on Professional Fees:**
Since you are working as a consultant and TDS is deducted under Section 194J (for professional services) at 10%, you should use **ITR-4**. ITR-1 is not applicable for income from a profession. ITR-4 is meant for individuals and HUFs who are residents and have income from a profession or business, and it includes sections for declaring professional income.

### 2. Income from Home Tuitions

**Home Tuitions Income:**
- **Head of Income:** Income from home tuitions should be declared under the head **"Income from Other Sources"** if it's not part of a regular business. However, since it seems like a part of your consulting work, it could also be declared under **"Profits and Gains of Business or Profession"** if it aligns with your consulting work.
- **Form:** Use **ITR-4** for this as well, since it allows for reporting income from profession and other sources. If the amount is nominal and you are not maintaining separate books for this, it’s easier to include it under the same form as your consulting income.

### 3. Nature of Business Codes

**For Consultancy Work:**
- **Nature of Business Code:** Since you are working as a journalist/reporter on a consulting basis, you should select the nature of business code that best fits professional services or journalism. This is generally listed under professional services or similar categories in the ITR form. Check for codes like “Professional Services” or “Journalism” in the ITR-4 form instructions.

**For Home Tuitions:**
- **Nature of Business Code:** For home tuition, if it’s a part of your professional activity, you may use the same code as above. If you need to select a code specific to teaching or education services, use that, but often such small-scale income can be included under the general professional services category if it’s not a major part of your work.

### 4. Balance Sheet and Expenses

**Balance Sheet Details:**
- **Balance Sheet:** As a consultant, you may not have a detailed balance sheet like a business entity would. In this case, you generally do not need to fill in detailed balance sheet items unless you are maintaining books of accounts. You can generally leave these sections blank or enter minimal details relevant to your consulting business.
- **Expenses:** If you have no other business expenses to claim and only have professional income, you may not need a detailed balance sheet. However, you should still provide details about your income and any deductible expenses you are claiming.

**General Guidance:**
- Ensure you accurately declare all your income and deduct TDS properly in the respective sections of ITR-4.
- Claim expenses related to your consulting work under the appropriate section if you have any, such as office expenses, professional fees, etc.
- Consult a tax professional or advisor if you have any doubts, especially if your financial situation is complex or involves multiple sources of income and deductions.

Filing accurately ensures compliance with tax laws and helps avoid potential issues with the tax authorities.