ITR 4 or 4s

I run a business. My profit margins are around 12%(almost constant every year) of the revenues which means i can file ITR 4S. What will be the Implications, advantages and disadvantages if i use ITR 4S and not ITR 4 ?
Asked 2 months ago in Income Tax from Patiala, Punjab
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
Caabhishekdugar@gmail.com
Abhishek Dugar
CA, Mumbai
761 Answers
5.0 on 5.0
  Talk to Abhishek Dugar
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.




Vishakha Agarwal
CA, Bangalore
210 Answers
5.0 on 5.0
  Talk to Vishakha Agarwal
It is suggested that if your turnover is below 1 crore and profits more than 8%, to fill ITR 4S
Shyam Sunder Modani
CA, Hyderabad
955 Answers
4.9 on 5.0
  Talk to Shyam Sunder Modani
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.
Shyam Sunder Modani
CA, Hyderabad
955 Answers
4.9 on 5.0
  Talk to Shyam Sunder Modani
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.
Vishakha Agarwal
CA, Bangalore
210 Answers
5.0 on 5.0
  Talk to Vishakha Agarwal
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.
Rohit R Sharma
CA, Mumbai
719 Answers
5.0 on 5.0
  Talk to Rohit R Sharma
No it won't become black money. However, if you want to declare profit more than 8%, your free to do so.
Abhishek Dugar
CA, Mumbai
761 Answers
5.0 on 5.0
  Talk to Abhishek Dugar

Ask a Question

Get tax advice from top-rated chartered accountants. It's quick, easy, and anonymous!
Ask a question

Other questions asked by this user

Other Questions

Chartered Accountants

Abhishek Dugar
CA, Mumbai
761 Answers
5.0 on 5.0
Shyam Sunder Modani
CA, Hyderabad
955 Answers
4.9 on 5.0
Rohit R Sharma
CA, Mumbai
719 Answers
5.0 on 5.0
Vishakha Agarwal
CA, Bangalore
210 Answers
5.0 on 5.0
Shiv Kumar Agarwal
CA, Delhi
195 Answers
5.0 on 5.0
Lalit Bansal
CA, New Delhi
72 Answers
5.0 on 5.0
Vishrut Rajesh Shah
CA, Ahmedabad
229 Answers
4.9 on 5.0
Ria Nagpal
CA, Ahmedabad
28 Answers
5.0 on 5.0
B Vijaya Kumar
CA, Hyderabad
290 Answers
5.0 on 5.0
Bhagyashree Kankaria
CA, Pune
26 Answers
5.0 on 5.0