ITR 4 or 4s

Dear Sir,

If your turnover does not exceed 2 crores rupees during the financial year, you can opt for presumptive taxation and offer 8? of your turnover as your profit from business and file ITR 4S.

ITR 4S does not require you to prepare full fledged accounts. A simple cash book and bank book is enough. You don't need to maintain records of your business expenses. It is advisable to file ITR 4S when actual profit is 8? or more than that.

please feel free to call/revert in case of any doubts.

Thanks and Regards

Abhishek Dugar

CA CS B.Com

Hi,

if you file ITR 4s,

1) there is no need to maintain books of account.

2)income will be assumed at 8% of the gross turnover.

3) you cant carry forward losses in case of filing ITR 4S.

4) there is no need to pay advance taxes. you can pay all taxes in the last installment i.e by 15th of March.

in ITR 4:

1) you are required to maintain books of account.

2) you can carry forward losses for 8 financial years.

3) you are required to pay advance tax.

depending upon your business you need to decide which ITR 4 or 4s is best suited to you.

It is suggested that if your turnover is below 1 crore and profits more than 8%, to fill ITR 4S

Sir 8% is the criteria for filing ITR4S. This is the minimum you need to declare. If you are earning 12% then you need to declare 12% as profits and pay tax accordingly.

yes, remaining 4% wont account as black money.

this is to facilitate small businessmen whose turnover not exceeding Rs 2 cr. they are not liable to maintain books of accounts and they can declare there income 8% or more of their turnover.

Dear Sir,

If your turnover is less than 1 cr then you can file ITR-4S. you can show a profit percent more than 8% but not less than 8%.

Trust this clarifies your query.

Feel free to call / get back in case of further clarifications.

Thanking You.

Regards,

Rohit R Sharma

BCOM, ACA, LLB-GEN, CERT. FAFP.

No it won't become black money. However, if you want to declare profit more than 8%, your free to do so.