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Return Filing U/s 44 Af

Gaurav ( Ca finial ) (27 Points)

14 August 2010

If any firm engaged in retail his total turnover is below the audit limit he want to declare his income 5.5% (U/s 44 Af) then return filing Itr V

What is proces of filing of ITR V u/s 44 Af (Main problem facing there are no balancesheet & P&L and coloum of U/s 44 Af income shows after salary & intrest , then not 5.5% it is after salary & intrest. )

Ex.

Turnover 38 Lac = Income 209000 (5.5%)

Less Salary 120000

Les Intrest 80000

Balance 9000

Then what Income shows 209000 or 9000 Colum of U/s 44 AF

What treatment if show 9000/- then not know total income of turnover .

Please solve my problem with itr v example.

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2 Replies

Amit Sarawgi (C.A. Final & Arical) (101 Points)
Replied 14 August 2010

I am not able to understand your question, how can a firm has profit u/s 44AF because it has to maintain book of account and account must be audited.

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Pankaj Gulati (Tax Advisor) (81 Points)
Replied 15 August 2010

I think with ITR V, u mean ITR 5 :)

On the first page of ITR 5, please opt NO in front of ‘Are you liable to maintain books of accounts u/s 44AA’

In Part A-BS col 6 (no account case), write the amount of Drs, Crs, SIT and Cash in hand

In Part A- P&L in col 52 (no account case), write TO as 38 lac, GP as 209000, Exp. as 200000 and NP as 9000/-

Be sure to opt for code 0202 ‘Retailers’ in the drop down menu under the head ‘Nature of business’. Here u can write a small note like Section 44AF opted. Profit before Interest & Remuneration to partners is 5.5%. This much text is allowed by mostly all e-filing software in this area of ITR. I am asking u to write this so that ITO may not say that this is ur after thought.

I don’t think there is any better way of expressing income u/s 44AF in ITR 5.

The above opinion is based keeping in view that u will e-file this return (which I recommend). If u r filing it through paper, u can write anything any where to express yourself :)