Rani (None) (277 Points)
08 July 2024Hello,
A person worked in a firm for 6 months as a trainee for Rs.15000/- per month. 1% of remuneration was deducted as TDS. AIS entry is business receipts, 26 AS has tax deducted details.The person has Rs 9500 as dividend and bank interest. LTCG of 170000/-.
Which ITR should the person file? Total income is less than Rs.300000/-.
Thanks in advance.
Rani
Dhirajlal Rambhia
(SEO Sai Gr. Hosp.)
(177832 Points)
Replied 08 July 2024
File ITR 3 with sec. 44AD of IT act.
CA Aakarsh Jain
(CA)
(10431 Points)
Replied 08 July 2024
Rani
(None)
(277 Points)
Replied 08 July 2024
Thank you Sir. If the person does not file ITR (since total income is less than Rs.300000/-) what would be the implications other than losing his refund?
Dhirajlal Rambhia
(SEO Sai Gr. Hosp.)
(177832 Points)
Replied 08 July 2024
A query will be raised based on AIS data, which you will have to reply stating the reason for not filing return.
Rani
(None)
(277 Points)
Replied 08 July 2024
Sir, One more clarification. TDS is deducted under 194 C.
so, ITR is 3 with sec 44 AD?
Thanks.
Dhirajlal Rambhia
(SEO Sai Gr. Hosp.)
(177832 Points)
Replied 08 July 2024
Yes, that is why suggested sec. 44AD, being easier to file.
Rani
(None)
(277 Points)
Replied 08 July 2024
Hello,
Filing ITR 3 with sec 44AD:
1. The amount received as contract person is entered in Sch : Part A P& L under persumptive income (sec 61). Total receipt of Rs.90000/- has been adjusted to 6% of the value. (Rs.5400/-). Is that correct? Or was the data entered wrongly?
2. Can the other schedules in ITR 3 like Nature of business, BS, Manufacturing account etc can be left as such? Any data to be filled in these schedules?
3. If the person becomes a salaried employee in the coming years can he/she file ITR1/ITR 2?
Thanks in advance.
Dhirajlal Rambhia
(SEO Sai Gr. Hosp.)
(177832 Points)
Replied 08 July 2024
1. Correct, better go for 8/10 % profit.
2. No. Fill them properly, including Column 6 of Schedule BS. (none in manufacturing Account)
3. Yes, if no business activity in the year.
Rani
(None)
(277 Points)
Replied 09 July 2024
Thank you Sir,
1.8 or 10% of profit ( Rs.7200 or 9000 in place of Rs.5400). Is that correct?
2 Column 6 of Sch BS - Cash balance should be the same amount as above? (All the other entries are zero in this case).
Dhirajlal Rambhia
(SEO Sai Gr. Hosp.)
(177832 Points)
Replied 09 July 2024
1. Yes,
2. Can be even below.
Rani
(None)
(277 Points)
Replied 09 July 2024
Thank you very much Sir for your quick response. Really appreciate it.
CAclubindia
