Which ITR to be filled for a women earning only through Home baking. As the accounts are not being kept, can advantage of section 44AD or 44ADA be applicable to her.
6 Replies
Kapadia Pravin
(17259 Points)
Replied 14 August 2019
44ADA is not applicable. And hence show u/s 44AD
Suresh Thiyagarajan
(Student)
(3986 Points)
Replied 16 August 2019
1. Home baking is a good business and can be very tiring at times. Anyways with respect to tax, income from such business will be considered as business income and not a profession.
2. Presumptive taxation u/s 44AD can be opted for and there is no need for maintaining BOA as such.
3. 8% of the gross receipts during the year will be considered as income and tax shall be payable on the same. The 8% will be replayed by 6% if the receipts are through NEFT, RTGS and not through cash.
Please correct me if the above solution has an alternative view.
Bhushan
(Tax payer)
(37 Points)
Replied 16 August 2019
Thanks Suresh. I have a similar understanding as yours.
With reference to your point 3, do we need to keep separate records of gross receipts? or will it be fine to keep bank statements as records?
Also does transactions through Wallets like Paytm be counted for 6% of gross receipts like NEFT, RTGS?
Suresh Thiyagarajan
(Student)
(3986 Points)
Replied 16 August 2019
1. Generally, bank statements are considered as a valid record. But it would be best if you have a separate record for gross receipts and do a cross-verification and reconcile it for its authenticity.
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