Hi everyone,
My brother sells some plastics items and toys on streets via cart. (Hindi- mara bhai Thele pe toys bechta hein). He earns a profit of 20000 Per month but he has not maintained any books of account. Can he file ITR without accounts of books . How Can he file ITR and which form he should use for filing ITR.
I run a small business. My total income is 2 lakh annually. I have filed my ITR from 2005 to 2018. Can I deposit 10 lakh ruppe in cash in total of 13 years.--
My calculation : 2 * 13 = 26 lakh
expenses : 15 lakh
savings : 11 lkah
Are above calculations are justifiable. Hi
Yes, ITR 4 can be filed under presumptive taxation of section 44AD considering profit to be 8% of the turnover.
Cash deposits of such an amount is not advisable. Moreover, after the demonetization in 2016, such calculations are not at all justifiable.
Yes your brother can file return without books of accounts. He can use ITR 4 i.e. presumptive taxation.
You can also file return in same manner.
Thanks Lakshita Mam and Vivek Sir for reply I run a small business. My total income is 2 lakh annually. I have filed my ITR from 2005 to 2018. Can I deposit 10 lakh ruppe in cash in total of 13 years.-- In above case , how much cash I can deposit in bank for being on the safer side.
Does the cash relate to your past incomes? And what is the reason for doing so?
It's not possible to discuss such things at this open platform. I request to contact someone personally, may be through a phone consultation.
Yes, your brother can file ITR 4 under presumptive taxation.
It is not advisable to deposit such kind of cash in bank account. It is sure to seek attention of the tax authorities. Going forward please deposit your savings periodically which you will be easily able to justify.
Regards,
Nikhil.
You can deposit but it should be substantiated in future if required.
Hi,
Yes, your brother can file ITR 4 without books of accounts. He can use presumptive basis of taxation under section 44AD.
Please let us know hat have you done with your cash at the time of demonetization ?
Please feel free to call/ revert in in case you need more clarity.
Thanks and regards
Abhishek Dugar
CA CS B.Com
hii
Your brother can file ITR for AY 2018-19 in ITR form 4 u/s 44AD Presumptive basis.
practically you are right but after demonetization you cant deposit Rs. 10 Laksh in your bank saying this is your accumulated savings , thus its better to deposit 5-5 lakh in your and your brothers account saying income of AY 2017-18, 2018-19 and some accumulated saving of past.
Regarding cash deposit : I think I have framed the question in wrong way 1. I have deposited 3 lakh cash in 2014 for paying my son's education fees . 2. I have again deposited 3 lakh cash in 2015 for paying my son's education fees . 3. I have purchased one land for 3 lakh in june 2016 3. I have deposited 1 lakh during demonetization Total cash deposit : 10 lakh in 13 years So in total 13 years I have
Ok..this is better than before. Assuming that these deposits have been made in a phased manner and not together, it should be fine since I think you can easily justify that mostly the entire income of yours is in cash.
Regards,
Nikhil.
It seems reasonable to me. I don't anticipate any problem.
Please feel free to call/ revert in in case you need more clarity.
Thanks and regards
Abhishek Dugar
CA CS B.Com
ok then no problem you can justify your deposit and said deposit through accumulated savings and earnings.
I don't think there is any problem as you deposited in multiple years for which ITR had also been filed by you but still I recommend you that cash deposited should have proofs of it's generation or source.
Ok.. in that case it's not a problem.
But, you should consider regular deposits of lower amounts in the bank.
Hi,
For filing the business tax return, one should file ITR 4 taking presumptive taxation route to save on taxes.
Under this option law gives you enough choice to report presumptive income for your business.
Once the income is reported in a financial year and amount has been paid for the same towards taxes, no further taxation will happen on the same amount getting deposited in the bank account.
Thanks
Damini
Hello,
Yes, your brother can file IT Returns. Either ITR - 1 or ITR - 3 in case he wants to file Balance Sheet or ITR - 4 on a presumptive basis.
For your Cash Deposit since it is done on a regular/ early basis is not a problem if you would have deposited the entire amount in one go it would have been a big problem.
Make it a point to deposit regular sums every month than depositing in one go, it will help you save all the hassle and inquiry part.
Trust this clarifies your query.
Feel free to call / get back in case of further clarifications.
Thanking You.
Regards,
Rohit R Sharma
BCOM, FCA, LLB, CERT. FAFP
