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Itr of individual doing home parlour

Ankit Sharma (Student CA Final ) (43 Points)

01 August 2018

I am filing return of individual, doing home parlour/ home tuitions. Not eligible for tax audit. Income around 2.7 lakh per year. Which itr form is applicable? If ITR 4 presumtive tax is applicable then how to show assets and liabilities (mainly bank account)? All receipts and payments made through cash.

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25 Replies

CA Naveen Chand (Chartered Accountant) (12729 Points)
Replied 01 August 2018

file itr 1

1 Like

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Ruchika Somani (Coaching and Practice in Tax Audit Law.) (4429 Points)
Replied 01 August 2018

ITR 3 under 'No account case' or ITR 4. You can put amount as 0 is sundry debtors creditors stock but put some nominal figure under cash in hand

1 Like

Ruchika Somani (Coaching and Practice in Tax Audit Law.) (4429 Points)
Replied 01 August 2018

Originally posted by : NAVEEN CHAND
	file itr 1

Assessee does'nt have salary income

CA Naveen Chand (Chartered Accountant) (12729 Points)
Replied 01 August 2018

itr 1 is also preferable as u canshow the income under other sources and simple & fast

CA Naveen Chand (Chartered Accountant) (12729 Points)
Replied 01 August 2018

Originally posted by : Ruchika Somani
	Originally posted by : NAVEEN CHAND file itr 1 Assessee does'nt have salary income

but having the other source income

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Ruchika Somani (Coaching and Practice in Tax Audit Law.) (4429 Points)
Replied 01 August 2018

Originally posted by : NAVEEN CHAND
	itr 1 is also preferable as u canshow the income under other sources and simple & fast

Naveen parlour income is a business income

CA Naveen Chand (Chartered Accountant) (12729 Points)
Replied 01 August 2018

how's know you me and ankit

a.o is not aware about that so i think he can show in itr 1 also as OS

CA Naveen Chand (Chartered Accountant) (12729 Points)
Replied 01 August 2018

BUT U ARE RIGHT . . .

ITR 3 IS SUITABLE AND ITR 1 IS ALTERNATIVE

1 Like

Ruchika Somani (Coaching and Practice in Tax Audit Law.) (4429 Points)
Replied 01 August 2018

Originally posted by : NAVEEN CHAND
	how's know you me and ankit a.o is not aware about that so i think he can show in itr 1 also as OS

But in other source too assessee has to specify source, since herein income is below exemption limit so i feel ITR 1 would serve the purpose?

1 Like

CA Naveen Chand (Chartered Accountant) (12729 Points)
Replied 01 August 2018

IN ITR 1 NO NEED TO PROVIDE SOURCE

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Ruchika Somani (Coaching and Practice in Tax Audit Law.) (4429 Points)
Replied 01 August 2018

Originally posted by : NAVEEN CHAND
	IN ITR 1 NO NEED TO PROVIDE SOURCE

acha

1 Like

CA Naveen Chand (Chartered Accountant) (12729 Points)
Replied 01 August 2018

HA ji

RAJA P M ("Do the Right Thing...!!!") (128010 Points)
Replied 01 August 2018

Dear Naveen.,

Correctly said as " ITR 1 IS ALTERNATIVE "

But, It's not correct.

Bcoz, In case AO will be issued notice about the same then how to reply by the assessee...

So, As per Consultant We must think about future problems and save assesee

2 Like

Ankit Sharma (Student CA Final ) (43 Points)
Replied 01 August 2018

Agree with RAJA & RUCHIKA, as i can use ITR 1 to file return hassle free but this will not be a proper way. As assessee has only source of incone from parlour or tuitions, which becomes his main source of income. Best way is to show as business income.