• Need help in filing tax under 44ADA

Hi,
I am a freelance software developer. So I am filling ITR 4 through 44ADA.
I have declared gross receipt of the year and 50% of gross an earning.

Now I am confused what to enter in Sundry creditor , Sundry debtors , Inventory and cash-in-hand.
I work on my projects and I also pay few amount to other software developers who work with me part time. My clients pay the money once project is done.
Asked 3 years ago in Income Tax

Hi

 

Inventory would be zero.

Debtors and creditors would be zero unless you have some outstanding receivables or payables as on 31 March 19.

Cash balance would be the cash in hand as on 31 March 19, if any.

All these details would be in relation to your business accounts.

Lakshita Bhandari
CA, Mumbai
5657 Answers
807 Consultations

5.0 on 5.0

Yes, that would be acceptable.


Put the bank balance figure correctly.

Lakshita Bhandari
CA, Mumbai
5657 Answers
807 Consultations

5.0 on 5.0

Cash, bank balance and capital needs to be filled in your case and all other values would be zero. Also check your bank account, if any loan received or given for the purpose of profession that needs to be disclosed. Also reconcile the figures with Form 26AS.

Vivek Kumar Arora
CA, Delhi
4476 Answers
606 Consultations

5.0 on 5.0

Also don't forget to show Fixed Assets such as laptop used for software development.

Vivek Kumar Arora
CA, Delhi
4476 Answers
606 Consultations

5.0 on 5.0

Hello Sir, 

 

In your case, if you can estimate the values as on 31st March, then you can put those values in respective field. Otherwise, you can also skip it.

 

Thanks 

CA Sourabh Pahuja 

Sourabh Pahuja
CA, Delhi
78 Answers
1 Consultation

5.0 on 5.0

Hi,

 

Please put zero in all columns except cash in hand.

 

You need to show cash balance.

Karishma Chhajer
CA, Jodhpur
2444 Answers
29 Consultations

5.0 on 5.0

Hi,

 

If you are going to file u/s 44ada then you will have to fill the above said details

If you have those balances then You can fill that balance amount. Otherwise if you don't have balances then just put zero in all columns.


Payal Chhajed
CA, Mumbai
5170 Answers
236 Consultations

5.0 on 5.0

If you dont have any debtor, creditor, inventory or cash just mention zero there but since you are saying you are to pay salary so may be you can show it as creditor.

 

Hope you find the information helpful if you do please rate it 5 and provide your valuable feedback for my improvement.

Thank you.

Naman Maloo
CA, Jaipur
4053 Answers
67 Consultations

5.0 on 5.0

Hello,

 

While filing ITR-4 (under Sec. 44ADA), these four items are mandatory. You are required to give these details compulsorily.

Inventories should be zero. You can give the balance of any debtor or creditor if you have any. You can give the amount of any fees receivable as on 31st March 2019 as sundry debtors.

Cash balance as on 31st March 2019 needs to be mentioned.

I hope this answer satisfies your requirement.

 

Regards,

CA Hunny Badlani

Hunny Badlani
CA, Madhya Pradesh
2601 Answers
16 Consultations

5.0 on 5.0

Important thing, all these four details are mandatory. While other details required are to be mentioned if available. You need to leave the amount column if data is not available in case of details other than these four. Don't specify '0' in other details if not available.

 

 

Hunny Badlani
CA, Madhya Pradesh
2601 Answers
16 Consultations

5.0 on 5.0

Hi

 

If it's nil, then fill zero in all required fields. 

 

Hope it helps 

Swati Agrawal
CA, Mumbai
1146 Answers
7 Consultations

5.0 on 5.0

Yes, the all values will be zero if you dont have any balance.

Payal Chhajed
CA, Mumbai
5170 Answers
236 Consultations

5.0 on 5.0

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