Business or Professional Return
Business or Professional Return
Get filed your ITR – 4 (Sugam) for A.Y. 2017-18 Starting with 999/-
Who can use ITR-4 Form ( Sugam)
ITR-4 can be filed by an individual/ HUF/ Partnership Firm having total income for the assessment year 2017-18
(a) Business income is computed in computed with special provisions 44AD and 44AE (See detailed below) or
(b) Income from Profession computed as per presumptive taxation scheme of sections 44ADA (See detailed below) or
(c) Salary/ Pension; or
(d) Income from One House Property (excluding having loss from previous years)
(e) Income from Other Sources (excluding Winning income from Lottery & Race Horses).
NOTE :- Assessee is not required to file return in form ITR-4 (sugam) compulsory. A person may file ITR-3 or ITR-5 as the case may be, but if he file ITR-3 or ITR-5 then he has to keep & maintain book of account & get them audited.
Who cannot use ITR-4 Form (SUGAM)
Person having following Income cannot file Sugam form.
(a) Income from more than one house property or
(b) Having Income from Winnings from lottery or Race horses or
(c) I “Capital Gainsâ€, whether Short-term capital gains or long-term capital gains from sale of house, plot, shares etc. Or
(d) Income taxable U/S 115BBDA or
(e) Having Income of the nature referred to in section 115BBE or
(f) Having Agricultural income in excess of ₹5,000; or
(g) Income from Speculative Business or
(h) Agency business income or commission or brokerage or
(i) Claiming relief of foreign tax paid U/s 90, 90A or 91; or
(j) Any resident having any asset (including financial interest in any entity) situated outside India or signing authority in any account located outside India or
(k) Any resident having income from any source outside India.
Presumptive taxation scheme of section 44ADA for Professionals.
1. A person resident who is individual, HUF, Partnership firm ( Not Limited Liability Partnership firm) in India engaged in following professions can ca file return of presumptive taxation scheme of section 44ADA:-
Legal,Medical,Engineering,Architecture,Accountancy,Technical Consultancy,Interior decorator,films artist,Information technology,companies Secretaries,certain sports related persons
2. This section is applicable to those professionals whose total gross receipts do not exceed more than Rs. 50 lakh in a financial year.
3. Under the provisions of section 44ADA, income will be computed on presumptive basis, i.e. @ 50% of the total gross receipts of the profession.
4. A person adopting the presumptive taxation scheme deduction of expenses is not allowed after declaring profit @ 50%. While computing income as per the provisions of section 44ADA, separate deduction on account of depreciation is not available. However, the written down value of any asset used in such business shall be calculated as if depreciation as per section 32 is claimed and has been actually allowed.
5. Such person can declare income higher than 50%. However if the assessee claim that his profit is less than 50% of the gross receipt then he can do so by maintenance of books of account U/s 44AA and gets them audited u/s 44AB
6. Person opting presumptive taxation scheme of section 44ADA, is not required to maintain book of account and get his account audited.
7. Persons opting this scheme under section 44ADA are required to pay advance tax in four instalments for F.Y 2016-17, While in F.Y 2017-18 such persons has to pay advance tax in one instalment only, on or before 15th March of the financial year.
Presumptive Taxation Scheme of Section 44AD
This scheme can be adopted by following persons. If the total turnover or gross receipts from the business ( like Retails, Wholesaler, Civil Contractor, E-commerce, other traders) do not exceed Rs. 2 crore.
1) Resident Individual
2) Resident Hindu Undivided Family
3) Resident Partnership Firm (not Limited Liability Partnership Firm)
If this scheme is adopted by the aforesaid person,
1. They cannot claim towards deductions under section 10A/10AA/10B/10BA or under sections 80HH to 80RRB in the relevant year.
2. No need to maintain books of account as prescribed under section 44AA.
3. No need to get accounts audited as per section 44AB.
4. No further expenses will be allowed or disallowed.
Person carry on following businesses can not adopt presumptive Taxation Scheme of Section 44AD
1. Business of plying, hiring or leasing of goods carriages referred to in section 44AE.
2. A person who is carrying on any agency business.
3. A person who is earning income in the nature of commission or brokerage.
4. A person whose total turnover or gross receipts for the year exceed Rs. 2 crore.
As per this scheme income is computed on presumptive basis at the rate of 8% of the turnover or gross receipts.
If turnover/gross receipt is received by an account payee cheque or an account payee bank draft or use of electronic clearing system through a bank account during the previous year, Income is computed @ 6% instead of 8%.
Note :- A person can declare income at lower rate (i.e., at less than 6% or 8%) AND his total income exceed exemption limit, he is required to maintain the books of account as per the provisions of section 44AA and has to get his accounts audited as per section 44AB.
Presumptive Taxation Scheme of Section 44AE.
This scheme can be adopted by every person (i.e., an individual, HUF, firm, company, etc.) who is engaged in the business of plying, hiring or leasing of goods carriages and who does not own more than 10 goods vehicles at any time during the year.
If a person owns more than 10 goods vehicles at any time during the year, then he cannot take advantage of this scheme.
As per this scheme Income will be computed @ Rs. 7,500 per month or part thereof during which the goods vehicle is owned by the taxpayer during the year. Part of the month would be considered as full month. However higher income can be disclosed.
If this scheme is adopted by the aforesaid person.
1. No need to maintain books of account as prescribed under section 44AA.
2. No need to get accounts audited as per section 44AB.
3. No further expenses will be allowed or disallowed. However, in case of a taxpayer, being a partnership firm further deduction can be claimed on account of remuneration and interest paid to partners.
Note :- A person can declare his income at lower rate (i.e., at less than Rs. 7,500 per goods vehicle per month), then he is required to maintain the books of account as per the provisions of section 44AA and has to get his accounts audited under section 44AB.