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I.t.return in case of income from tution fees , worship etc.

Nilotpal (Profession) (56 Points)

16 February 2013

How persons having very meagre income from tution fees , worship & monthly income from Fixed Deposit which is well below the minimum tax limit , will file I.T.Return ?

There is no documents of income from tution fees , worship etc.

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18 Replies

CA Suri Kota (Assistant Manager @ EY) (955 Points)
Replied 17 February 2013

If any TDS has not been deducted on FD ...then no need to file IT returns if it is below 2 lacs. If any TDS has been deducted on FD, in order to claim refrund you need to file returns.

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Nikhil Kaushik (Fellow CA) (86496 Points)
Replied 17 February 2013

Nilotpal,

If you are desirous of filing Income-tax returns, you can do so. The quantum of income is irrelevant in such a case.

you may file ITR 4 with the income from tuition and worship (forming part of your income from business and profession) and income from interest on FD (forming part of income from other sources)

In reference to your query that there is no document to evidence the income from tuition and worship, you need not worry. You can maintain a cash book to record all the transactions of receipt of fees. This should normally be sufficient.

Regards

Nikhil Kaushik

+ 91 - 9699 814 106

ARPIT SHARMA (Find Yourself Believe Yourself & Be Yourself) (386 Points)
Replied 17 February 2013

Nilotpal,

If you are desirous of filing Income-tax returns, you can do so. The quantum of income is irrelevant in such a case.

you may file ITR 4 with the income from tuition and worship (forming part of your income from business and profession) and income from interest on FD (forming part of income from other sources)

In reference to your query that there is no document to evidence the income from tuition and worship, you need not worry. You can maintain a cash book to record all the transactions of receipt of fees. This should normally be sufficient.

Regards

Nikhil Kaushik

+ 91 - 9699 814 106

the

The Correct way to go.

CA Nitin K. Varshney (FCA DISA CCA Peer Reviewer (ICAI)) (616 Points)
Replied 18 February 2013

Nilotpal,

there is no need to file ITR-4. U can file ITR-1 (sahaj) for ur income. just show ur tution fees and interest on FDs directly as other income. Filing of ITR4 is nt justifiable in ur case. may be u cn say it is a profession, bt file it as other income.

in filing it as other income, there is no need to have any documents. if u still want to show it as income from profession, u cn also file ITR-4S (sugam) by showing income u/s 44 AD.

As per my point of view, DON'T FILE ITR-4........................... if u r satisfied, reply me............

CA. Dushyant ZALA (PRACTISING C.A.) (72 Points)
Replied 18 February 2013

CA Nitin

Bro section 44 AD is applicable only in the case of business income not in the case of professional income.

so your advice regarding filing ITR-1 is good . Nilotpal you may file either ITR-1 OR ITR-4.

I also agree with Nitin for filing of ITR-1 when there is no evidence available.

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CA Nitin K. Varshney (FCA DISA CCA Peer Reviewer (ICAI)) (616 Points)
Replied 18 February 2013

Hey Dushyant, u r ryt bro, its for business. bt u cn also file ITR4S in case of profession. even i m filing returns like this. ther is no problem at all.

But in case of nilotpal, ITR-1 is the best option instead of any other form.

Vardan Singh Sengar (Accounts Manager in Private Company) (433 Points)
Replied 18 February 2013

WHAT SHOULD BE THE DOCUMENTS REQUIRED IN CASE OF SALARIED INCOME??

CA Gaurav Kaushik (Practicing Chartered Accountant) (123 Points)
Replied 18 February 2013

For filling the return of Income mainly from Salary ,generally these documents are requird :

1. Salary Certificate in case Employer is a private Concern

2. Form 16

3. Receipts of LIC, Tution Fees, Rent paid, NSC , Infra Bonds etc

4. Bank pass books etc

5. bank account number with MICR Code

Though none of these documents are required to be filed with department at the time of filing return

CA Gaurav Kaushik +91 98280 32885

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Vardan Singh Sengar (Accounts Manager in Private Company) (433 Points)
Replied 18 February 2013

Thank you very much sir for guidance.

if the tds is not deducted and the form 16 is not received by the employee and if he wants to file a nil return for future reference.

what would be the procedure??

Nikhil Kaushik (Fellow CA) (86496 Points)
Replied 18 February 2013

Dear Vardan,

in case you don't have form 16, you may file the return on the basis of monthly salary slips and the Form 26AS.

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Nikhil Kaushik (Fellow CA) (86496 Points)
Replied 18 February 2013

Dear Dushyant,

Please take note of the following:

1. 44AD is not applicable only for those professions as covered under 44AA. For other professions, 44AD is very much applicable. (kindly refer to the definiton of eligible business as given in the Act.

2. Further, your suggestion to show the income under the head "income from other sources" is not something that you should be giving in public forum. Please you may refer to Section 56(1) which states that any income not includable under any other head of income and 56(2)(ic) - "income referred to in sub-clause (x) of clause (24) of section 2, if such income is not chargeable to income-tax under the head "Profits and gains of business or profession." income from tuition cannot be offered to tax as other income unless it can be excluded from the head "income from business and profession".

1 Like

Nikhil Kaushik (Fellow CA) (86496 Points)
Replied 19 February 2013

Dear Dushyant, As I said before, 44AD doesn't apply only to those professions which are not covered under 44AA. 44AA itself covers only a few professions. To say that whatever is not covered in 44AA is not a profession - not a bad analogy! But there is a catch. 44AD is only a special section for convenience of the small assessees. The conditions laid therein are to exclude certain categories of small assessees. But it is in no manner a way determine whether a particular activity is business or profession!

Anyways, if you agree that the particular activity is covered under 44AD, then its logical that it is taxable under the income head "Income from Business and Profession". So your advice for showing the income as income from other sources stands on a wrong footing. I use the word "wrong" because section 56 specifically excludes any income which is not excluded by any other head of income.