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Itr for sale & service charge received

AMIT KR GHOSH (TAX CONSULTANT) (143 Points)

16 June 2016

Which ITR is to be filed by Individual Receiving Income from Sale of Glass & also Service Charge Received for Fitting Charge for Glass (Labour Charge) ITR 4 or ITR 4s

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Harshit Kabra (INVESTOR) (Student CA final) (1113 Points)
Replied 16 June 2016

See mr. Amit ji,

ITR-4 is to be filled by can be filled by anyone who is running a business or undertaking a profession. There is no minimum income you should be earning to file this return. Say if you are a shopkeeper, construction contractor, a doctor, a tutor, a retailer, a wholesaler, an insurance agent, interior decorator or fashion designer, you can file ITR-4. Absolutely all businesses are eligible to file ITR -4.

Whereas for ITR-4S,applicable for businesses where income is calculated on ‘presumptive method’. As per presumptive method – net income is estimated to be 8% of gross receipts (Section 44AD of the income tax act) or Rs 7,500 per month for each vehicle where the tax payer is plies, leases or hires trucks (Section 44AE of the income tax act). This is a special scheme of income tax department – those who opt for this scheme – don’t have to maintain accounting records.

Hope so u understood clearly.