My mother a medical professional in private practice was audited under 44AB till last year, her gross income was above 25 Lakh P.A. Last year her gross income was 28 lakh. This year her professional income is 15 lakh due to health issue. Apart from that there is F.D. income, mutual fund income, stocks income. First question: Can this sudden drop in professional income from 28 lakh to 15 lakh lead to scrutiny? What to say in scrutiny? Second question: Her professional income invites TDS u/s 194J. Profession: Medical doctor, visiting consultant at various private hospitals. So her professional income being 15 lakh this year with section 194J TDS, can we use 44ADA? With presumptive income of 50%? Which ITR will be used? ITR4S? And how to specify capital gain from stocks and mutual funds in ITR4S?
Some extra facts for clarity: Line 1: Audited till FY 2014-15, FY 2014-15 Gross income was 28 lakh. Lne 3: This year i.e. (FY 2015-16) her professional income is 15 lakh. Return yet to be filed. My question about 44ADA is about FY 2015-16 only, return yet to be filed as mentioned previously,
Yes u can use 44ADA FOR AY 2017-18,
in your case you required to file ITR4 Instead of ITR4S , in ITR 4 disclosed your income under presumptive income under Income from Business /Profession and other income as per there respective heads I.e. capital gain , other source
My question about 44ADA is about FY 2015-16 like I said. This return is not yet filed. So is it possible to use 44ADA for FY 2015-16? (AY 2016-17) And why ITR4? Why not ITR4S? Does it not have provision to specify capital gains from stocks and mutual funds and fixed deposit interest as "other income"?
Section 44ADA applicable from AY 2017-18 thus u can't use this for AY 2016-17, on medical professionals section 44AA apply thus for AY 2016-17 you have to maintain proper books of accounts
In ITR 4S we can't show capital gain income
In this form no coloum for Capital gain
Thus I suggest u to fill ITR4 form
Dear Sir
Please find my response below:
1. This drop in Gross Income per se does not lead to scrutiny.
2. Section 44ADA is applicable from FY 2016-17. Hence you cannot take benefit of this section in FY 2015-16. Accordingly, you will have to use ITR 4.
Please feel free to call/revert in case of any doubts
Thanks and Regards
Abhishek Dugar
CA CS B.Com
Thank you for the information. Presumptive income can be specified in ITR4 too if required OK, but where in ITR4? Next question on ITR4: Question on ITR4, P & L, item 53: "NO ACCOUNTS CASE" And BS, item number 6: "No Accounts Case" Is this for presumptive income? If not, under what circumstances is this used?
No, presumptive income can not be specified alone,
no account case is when you are not maintaining accounts - balance sheet and profit and loss account.
Hello Sir,
You cannot use Section 44ADA for professional income for the FY 2015-16. It is applicable from FY 2016-17.
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.
Abhishek and Vishakha Are your answers saying the same thing? Vishakha - No Accounts Case is when no accounts are maintained. Isn't this where presumptive income comes into play? So once, again, question open to all of you - How in ITR4 is presumptive income specified? Is there a 44AD column? And "No Accounts Case" columns have to be filled too?
Hii
Happy Diwali to you and your family
1. Enter income details in profit and loss under non maintaining books of accounts
2. Enter same Profit details in schedule BP point no. 35
Hope your query solve now
Dear Sir,
Firstly It appears that you are getting lost in all this translation.
Lets try and make it simple for you.
Point 1 : You cannot file Presumptive Income in ITR - 4, that was the sole reason why ITR - 4s was introduced.
Point 2 : If books of accounts are not maintained then you can fill last 4 columns of ITR - 4, stating the details you have at your perusal and pay the respective taxes stating that No Books of accounts are maintained.
But the question which arises here is are you eligible to do it. The answer is No, since your mother still has recipts worth Rs. 15 Lacs in FY 2015-16. So it was your duty to maintain Books of Accounts or you can get it prepared now and then file your return of income in ITR - 4.
Hope this suffices and brings some amount of clarity in your queries.
Feel free to call / get back in case of further clarifications.
Thanking You.
Regards,
Rohit R Sharma
BCOM, ACA, LLB-GEN, CERT. FAFP.
Dear Sir,
In ITR 4S, there is no option to disclose capital gain. Hence, in case you are opting for presumptive scheme in your business and you also have capital gain, you can't file ITR 4S and you have to file ITR 4.
In those case, we use no-account maintenance cases.
However, you mother cant use this option as she is not eligible in to opt section 44AD in FY 2015-16.
Hope your doubts are clear now.
Please feel free to call/ revert in case of any doubts
Thanks and Regards
Abhishek Dugar
CA CS B.Com
no account case in ITR 4 means where you are not required to maintain books of account under section 44AA
Sir No Accounts case must be filled . It is must.
