• ITR 4 without books of account case

Mr. X had professional income of 7L in FY14-15 but has not maintained books of accounts for that year. In last FY 12-13 & 13-14 he filed ITR 4s for his another business income with gross receipt 18L and 7L respectively. 

- Was it necessary for him to maintain personal books of accounts for FY14-15?
- How can he file ITR 4 for FY14-15 without books of accounts as balance sheet & P/L required?
- Can he file ITR 4s for FY14-15 mentioning professional income as income from other sources?

Thank you.
Asked 3 years ago in Income Tax from Kolkata, West Bengal
Yes he can file by showing the same under Income from other sources.

Or he can fill in ITR 4 as no Books accounts case and file accordingly.
Shyam Sunder Modani
CA, Hyderabad
1408 Answers
95 Consultations

5.0 on 5.0

Dear Sir,

You can file ITR 4s showing that No Books of Accounts are maintained for the FY 2014-15.

BUt for the FY 2012-13 where in you had filed ITR4S showing Gross Receipts as 18L. I hope you were not subject to VAT as you had crossed the Basic exemption Limit of VAT and hence was liable for registration and hence required to maintain books of accounts.

Thanking You.
CA Rohit R Sharma

Rohit R Sharma
CA, Mumbai
2104 Answers
91 Consultations

5.0 on 5.0

It is advisable to prepare books of account as that may save substantially in payment of Income tax. 

You may contact nearest chartered accountant to file returns without books of account.
Such practise is not advisable.
Vijay N. Kale
CA, Hyderabad
248 Answers
12 Consultations

4.9 on 5.0

Kindly refer to Sec 44AA of Income Tax act, 1961. According to this specific professionals are required to maintain books of accounts and other documents for Income tax Purposes. For this kindly check the limits given.

Showing your professional Income under any other head of income is not recommended.

For any other queries, contact at:
Shiv Kumar Agarwal
CA, Delhi
258 Answers
58 Consultations

5.0 on 5.0

He has to maintain books of accounts. 
However, as he did not maintain books of accounts, he may be levied penalty for non-maintenance of books of accounts.
So far as the filing of return is concerned, he has to the professional income as income from profession only. As the books of accounts are not maintained, he has to give the amounts in respect of his debtors, creditors, cash balances in the Balance Sheet section at the end and the amounts in respect of gross receipts, gross profit, expenses and net profit in the Profit and Loss section at the end. 
B Vijaya Kumar
CA, Hyderabad
845 Answers
48 Consultations

5.0 on 5.0

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