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Selection of ITR

Mahesh Kapadia (194 Points)

24 August 2020

For beauty Parlor which ITR is suitable and let me know 44ada or 44ad is applicable and what is its business code?

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13 Replies

Sagar Patel (Tax and Business Consultant) (11611 Points)
Replied 24 August 2020

You can File ITR 4 by opting presumptive Taxation scheme.
Presumptive Taxation u/s 44AD is applicable in your case declaring 8% or more profit.
Choose No books of accounts case
business code : 21001 Hair dressing and other beauty treatment

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Mahesh Kapadia (194 Points)
Replied 24 August 2020

OK thanks. Now let me know under this section
Taxable profit = gross fees received x 8% and 92% adjusted as expenses in pl account. Is it correct way to prepare Pl account?

Sagar Patel (Tax and Business Consultant) (11611 Points)
Replied 24 August 2020

Not required to prepare Profit and loss account
As there is no need to maintain books of account, if you are filing return under presumptive Taxation.

Mahesh Kapadia (194 Points)
Replied 24 August 2020

OK but if I prepare it for future then is it correct method?

Sagar Patel (Tax and Business Consultant) (11611 Points)
Replied 24 August 2020

In your case, it's not mandatory to match income tax return and Profit and loss account.
You can prepare it on Actual basis also.
like you can show more than 8% profit also.
e.g profit 15%,..and cost 85,%. ect...

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Mahesh Kapadia (194 Points)
Replied 24 August 2020

Can I declare more than 8% U/s 44ad for coaching class fees received?

Sagar Patel (Tax and Business Consultant) (11611 Points)
Replied 25 August 2020

Yes, you can declare more than 8% ...like 10%,14%,20%,50%,.... anything (any % more than 8%)

There is restriction regarding less than 8%, Means you can not show less than 8%...but more than 8%.....there is no limit.