If an individual has income assessable under section 44AD and income from other sources den will he hav to pay advance tax.???
Vignesh Killur
(Articled Assistant)
(1666 Points)
Replied 23 February 2012
No Advance tax is payable on Income earned U/s 44AD. Remaining is only income from other sources. Advance tax is payable only in Income from other sources provided the tax payable on it exceeds the threshold limit of Rs. 10,000/-
deepa
(CA)
(79 Points)
Replied 25 February 2012
but i have filled the income tax return for business under sec.44AD. and received a demand notice
for interest u/s 234B &234C
Vineet Goyal
(Assistant Manager - Finance & Accounts)
(702 Points)
Replied 25 February 2012
If estimated total tax for the year is INR 10000/- or more, it is mandatory to pay advance tax.
Vignesh Killur
(Articled Assistant)
(1666 Points)
Replied 26 February 2012
Hi Deepa,
Please check the following:
1. How much is your Income from Other sources? Does tax payable on it excluding the Business Income crosses 10,000?
2. Which Return form did you use to file your IT Return under sec 44AD? Previously ITR 4 was used. But i now hear that a new form SUGAM ITR 4S is applicable for the Assessment year 2011-12. Please check it out. I have attached the new form
3. In case you did file your returns using ITR 4, did you show the 44AD income under ITEM No 4 OR ITEM No 33(i) of SCHEDULE BP?
Please check this.
Also visit this link. /articles/new-section-44ad-text-and-discussion-9713.asp
In which it is clearly stated that there is no need to pay advance tax on 44AD income.
If you are not satisfied with the processing of CPC, you may seek rectification U/s 154 for mistakes apparent from record.
Regards,
Viggi
Vignesh Killur
(Articled Assistant)
(1666 Points)
Replied 26 February 2012
Hi,
ITR 4S attached. Please check it out.
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