Go Ad-Free on CAclubindia with Daily Mobile Updates. Subscribe Now!

Assistant director - itr 1 or itr 4??

Pranav (STUDENT) (47 Points)

21 June 2014

My client works as a free-lancing assistant director. During F.Y. 2013-14 i.e. A.Y. 2014-15, he has earned gross income of Rs. 44,000/- on which TDS of Rs. 3,500/- has been deducted by one of the payers. The tax has been deducted under section 194J - Professional Fees. Since his Income is very much below the threshold limit of Rs. 2,00,000/-, my query is whether his return is to be filed in Form ITR 4 (relevant for Businessmen and Professionals) or in Form ITR 1 (relevant for salaried individuals). Further, no books of accounts have been maintained by him due to the very little income. Is Tax Audit Compulsary in his case? Is it Mandatory to maintain books of accounts?

Read more at: /forum/assistant-director-itr-4--295182.asp#.U6V8BpSSzzg

Reply
Follow
Share

7 Replies

CA Saroj Kumar (Keen to learn something new every moments) (2588 Points)
Replied 21 June 2014

ITR 1 to be filed. no needs to maitain books of accounts. and not require to do tax audit.

Upgrade to CAclubindia Pro. Subscribe Now!

shikhar (LEARNER ) (1394 Points)
Replied 22 June 2014

Hello. Friend. You hv to file Itr 4, Not Itr1, Because income is recived from sec 194J. In normal cases where a dirctor recived any salary it is taxable under head income from other sources because there no employer employee relationship, hence he has to file Itr 4.

shikhar (LEARNER ) (1394 Points)
Replied 22 June 2014

Hello friend he has to file itr 4, Not itr 1 Because income is recived under sec 194 J. Normaly directors salary is taxable under head income from other souces not in salary head because, there is no employer and employee relationship.

Mihir (Wealth Manager) (5293 Points)
Replied 22 June 2014

He will have to file ITR-4.

(Guest)

You have to file ITR 4, for Income from business and profession as tds deducted u/s 194J. moreover, there is no required to maintain books of accounts unless and untill person carrying busines fall under Rule 6F of income tax

Upgrade to CAclubindia Pro. Subscribe Now!

Pranav (STUDENT) (47 Points)
Replied 24 June 2014

But in the ITR 4, there are schedules for Balance Sheet and P&L Account. My Client has no books of Accounts and only 2 Receipts in the whole year. He does not have any expenses to show also. In such a case, is it mandatory to fill in the Balance Sheet? Or can it be left blank? Further, can the expense heads be left blank in the P&L Account after typing in the Gross Receipts, since there are no records of expenses?