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Which itr applicable

20 September 2016

Sir, My friend will purchase a tata ace vehicle and giving it on hire to a company. It's a new business. His monthly rental income from vehicle will approx Rs. 8,000 /- p.m. Now he wants to show his income to IT department. So, my question is that - 1). which ITR will applicable for him? 2). Now he will buy this vehicle by taking bank loan so bank demanding IT file, as now he has no business, so which ITR will he filled for loan purpose? Pls clarify me anyone.

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7 Replies

Dhirajlal Rambhia (SEO Sai Gr. Hosp.) (177852 Points)
Replied 20 September 2016

1. ITR 4S or ITR 4

2. ITR 1 or 2A or 2

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Dhirajlal Rambhia (SEO Sai Gr. Hosp.) (177852 Points)
Replied 20 September 2016

1. ITR 4S or ITR 4

2. ITR 1 or 2A or 2

Dipankar Chakraborty (407 Points)
Replied 20 September 2016

Sir, In ITR 1 or 2 which he will file for taking bank loan - in which name he will show his income. As now he do not have any income. Pls clarify.

Dhirajlal Rambhia (SEO Sai Gr. Hosp.) (177852 Points)
Replied 20 September 2016

In his personal capacity, as no business as yet.

Take help of any local CA for preparing income to be declared, as you need to take Bank loan.

Dipankar Chakraborty (407 Points)
Replied 20 September 2016

Sir, In above case as stated to you for another person he has salary income Rs. 90,000 /- per year and besides vehicle rental income. Vehicle ental income received by cheque from company and salary income he received in his payroll account. So, there is two question arise here -

1). He will file in ITR 4S as presumptive income as per section 44AE i.e Rs 7,500 /- p.m per vehicle but he received in cheque regarding this hire charge Rs. 20,000 /- p.m then any problem will arise from department?

2). If he will not shows his salary income in ITR 4S then any problem will arise in future although it has came through bank account?

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Dhirajlal Rambhia (SEO Sai Gr. Hosp.) (177852 Points)
Replied 20 September 2016

For your second query case: 1. Let me presume the vehicle is goods carriage, and the hirer is aware about TDS and service tax liability over the hired vehicle. As far as IT is concerned, section 44AE can be applied, with MINIMUM 7,500/- PM as income of the vehicle. Department can ask for the hire charge of the amount 20K PM, but as books are not required to be maintain, a general answer to the enquiry is the rest goes into EMI, expenses, maintanance, Depreciation. etc. So, its always preferable to show what remains into the account

2. Don't try to save on salary received by cheque. Cross-verification will be more problematic and stressful.

Dipankar Chakraborty (407 Points)
Replied 20 September 2016

Sir. In the above case any current account has required to open for receiving hire charge. As he is involving in business on presumptive basis. Or savings account can continue fir this. Secondly what type of liability will arise from tds & service tax. Pls clarify me. I know that tds will not apply as he continue his business presumptive basis. But I don't know about service tax. Pls kindly clarify this sir.