Tax questions on Income Tax

Question on tax filing

Financial Year: 2017-18 Name: Mrs Krishna , Age 60 Years Other sources of income: Nil Occupation: Home maker From sale of immovable property Rs 49,80,000 was received in her bank account. 2 flats has been purchased for her 2 sons. The sons are salaried employees aged 31 and 35 year’s. Ownership pattern of the flats is divided between the applicant and co applicant. In the 2 flat...

Notice under Section 139(9) error code 86 |

I have received a notice from IT saying "As per Section 44AD(6) of the Income Tax Act, 1961, the provisions of Sec.44AD are not applicable to – (1) persons carrying on professions that are referred to in Sec.44AA(1), (2) persons earning income in the nature of commission or brokerage, and (3) persons carrying on any agency business.As seen from the return of income filed, the nature of business...

Sec 44 ad error code 86

I am a lic agent. I fill in return code 0301. what code is suitable for me. I got a letter from cpc that " sec 44ad is not applicable for u architect under 44ADA and after more than 2 months i got communication from CPC u/s 139(9) that it is defective. Error code is 86- The provisions of Section 44ADA not applicable to the taxpayer. The nature of business code in Sch NOB is not a profession, ...

Regarding issue on contractual employee payment

Hello, I have seen some company are deducted 2% from the salary on the payment of contractual basis employees. Even some employees salary 27250 k and some 28250k. Telling whole thing here, In a year 365 day, Sangathan will not pay above said type of employees on summer vacation - 40 days, autumn brake - 10 days and winter vacation - 20 days. So total working days should be like thi...

Tax benefit on Joint Home Loan In case of single Payee

Hello, I and my wife took a home loan in the year 2017 . We are co-owners of this house and co-borrowers on the house loan taken for this house. The EMI is Rs 39000. The interest part is Rs 390000. The principle part if Rs 90000. Now the condition is I am the only one who is paying the entire EMI amount and contribution from my wife's account is nil. In other words, the entire house l...

Outstanding Tax Demand of AY 2015-16

Hello, I am facing a problem for the Income Tax of AY 2015-16. For this assessment year I was in USA and have income from USA, for this year I was in India for more than 182 days so the total income is taxable in India. I have chosen the wrong ITR (ITR1 instead of ITR2) and submitted after due date. I wanted to submit ITR2 and claim foreign tax credit. I have submitted the revised return...

penalty for NRI having purchase flat from resident account.

Hi! I'm an NRI living in Moscow since 2013. In India, I hold NRE, NRO n resident savings account. in Jan 2015 purchased a flat and deposited cash around 15Lacs n issued a DD for registration of flat from my resident savings account(Without knowing it's not a legal process). This 15Lacs have transferred from Moscow to India during 2013 n 2014 into my NRE account. I haven't filed ITR since ...

Guidance required

Dear Sir, I have not filed return for the assessment year 16-17 & 17-18 and now I am getting reminder through E mail & SMS to file the return as 31st March, 2018 is the last date & after ward I will not be able to file the return. I need your guidance as my case is described below. I was working in gulf from 01/11/2014 to 31/12/2016 and holding status of NRI during the accounting year 15-...

What components from salary can be shown to gain tax benifits

Hello, My salary breakdown structure is as follows :- Basic 25,333.58 Internet 1,000.00 Petrol and Driver Allowance 10,000.00 Meal Coupons 2,200.00 Employer PF Contribution 1,800.00 Leave Travel Allowance 5,000.00 Fixed Total 45,333.58 Flexible(Including FBP Components) Component Name Monthly House Rent Allowance 10,133.42 Conveyance Allowance Children Education Allowance Me...

Notice u/s 139(9)of income tax act, 1961

The assessment Year 2017-18 Filed ITR form type ITR-4 Source of Income- LIC Agent Error Code 86 Error Description- As per Section 44AD(6) of the Income Tax Act, 1961, the provisions of Sec.44AD are not applicable to – (1) persons carrying on professions that are referred to in Sec.44AA(1), (2) persons earning income in the nature of commission or brokerage, and (3) persons carrying ...

salary vs professional fee

Hi! I have got a query regarding Salary Vs Professional fees- what should be opted? I have got a friend who is a dentist and his monthly income is 70k. she has joined a private hospital where he is been paid like that. The hospital owner is depositing 70 k per month in his bank account. now being asked about form 16 he is saying we are treating you as a professional and cant reduce the TDS a...

paid demand not reflecting, and demand amount keeps on changing

A demand was raised on me for AY 2016-17, which I paid. The initial demand was raised for 40,090 rupees, which changed to 25,452 rupees after some days. I paid the demand after which again new demand with new DIN of 762 rupees was raised which I paid again.(I have demand closed notification with CRN for both demands. But even after paying the demands, the demand of 40090 rupees with same DIN ag...

Notice issued U/S 142(1)(i)

Dear Sir, I have been issued notice u/s 142(1)(i) which is as under; "In connection with assessment for assessment year 2017-18, you are required to prepare a true and correct return of your income in respect of which you are assessable under the Income-tax Act, 1961 (Act), during the previous year relevant to the assessment year, mentioned above. The said return of income should be...

Non Filing of lncome Tax Return for NRI

Hi My Father is an NRI workinjg in UAE for the last 35 years. Recently my father received a letter from Income Tax for ‘Non Filing of lncome Tax Return’ Below is the letter Subject: Non Filing of lncome Tax Return 1.The lncome Tax Department has received information on financial transactions/activities relating to you. A list of some of the information for Financia-Year 2014-15 ...

How to pay tax without purchase bills?

Hi, I am planning to do a business which involves old coins and currencies. The problem in this business is no one gives a bill when I purchase the materials and I have to pay them in cash, but all my selling will be done through bank transactions and everything will be accounted as I want to file for income tax, so I have the following questions. 1. If my turnover is below 9 lakhs per fi...

44 AD or 44ADA for software development business

Hi I read your answers and it helped me to understand 44ad and 44ada . I need some help in my case too. kindly help I am a software consultant add works as a freelancer on upwork.com. my receipts are between 15 lakh to 30 lakh. but my wife works with me as a data entry operator and my brother also works as content writer . some other software professional friends also works wit...

Duration of rnor

Would some honorable member explain to me my tax status as per the the information given below. I was working outside the country since the last 15 years. I spent in excess of 185 days outside the country in every financial year since 2004, thus qualifying me as a non resident for every year all the way upto March 2016. After 15 years of service I lost my job, on my return to India for le...

Defective return communication u/s 139(9) from Income Tax Dept

Dear Experts, I am a freelancer software developer having a proprietorship firm and has submitted ITR under 44ADA and recently has received communication from CPC u/s 139(9) that it is defective. Error code is 89- The provisions of Section 44ADA not applicable to the taxpayer. The nature of business code in Sch NOB is not a profession, and the income disclosed under Section 44ADA income is...

Notice for Defective Return U/S.139(9)

I am a computer professional mainly dealing in IT enabled services(Code:-709), Software development (Code"-0711) and Face book advertising contractor (code:- 0505).. under single proprietary concern.I have filed return form 3 and claimed some of my receipts as Professional receipts u/s.44ADA. However since I am not maintaing regular accounts, I have preferred Part B of P& L section and shown Gr...

Notice U/s139(9) error code 181

I am a Advocate Professional. Today, I have received a notice from IT department u/s 139(9). The reason mentioned is error code 181: "a) The Gross Receipts is not mentioned in the Profit & Loss A/c, OR b) The profit shown is less than 50% of the gross receipts as prescribed u/s 44ADA but has not mentioned the maintenance of the books of accounts and audit report u/s 44 AB in part A-General and...