Small entrepreneur and biz proprietor – A top notch method to file your IT return
Running a biz and preserving account books of accounts is a tiresome job for small as well as new capitalists. To lessen the burden of such entrepreneurs from the preservation of regular account books and to concentrate on their biz, the Income Tax Act offers some relaxations for the preservation of accounting books.
- Section 44AD offers that an entitled taxpayer enlisted in any biz (except business of plying, hiring, or leasing goods carriages or earning commission/brokerage or carrying agency business) and whose overall turnover/gross receipts from such biz in the previous year does not surpass Rs 2 crores can announce 8% of gross receipts/total revenue (6 percent in respect of turnover or gross receipt received by banking channel) or a sum more than the amount figured as above as their deemed profits from biz.
- Section 44ADA offers that entitled professionals having overall gross receipts not beyond Rs 50 lakhs can declare 50% of gross receipts or a sum beyond the amount computed as above as their deemed profits from the profession.
- Section 44AE offers that entitled assessee not possessing over 10 goods carriages engaged in the biz of plying, hiring, or leasing can announce Rs 7,500 for a month/part of month for which the goods carriage is owned by the assessee or genuine income made from the vehicle, whichever is higher as their deemed profits from biz.
Some of the other traits of presumptive taxation system comprise -
- 100% advance tax must be paid in the fourth quarterly period.
- No other deductive reasoning is permitted with regard to any expenses in opposition to the deemed profits declared.
Here you have a chance to file your income tax return in an easy form, which is ITR-4 Sugam in place of ITR-3.
ITR-4 Sugam can be registered by resident individuals, Hindu undivided families, and partnership firms (excluding LLP’s) boasting of proceeds from any of the aforementioned specified biz or line of work and opt for presumptive income scheme as discussed above.
Further, aside from presumptive proceeds, the other profits to be mentioned in ITR-4, if any, may be from pay or income from one house property (aside from cases where a loss is brought forward from preceding years) or proceeds from other sources (excluding winning from lottery and income from horse races).
Additionally, in a case where the revenue of another human being like another half, minor kid, etc. is to be clubbed with the proceeds of the assessee, ITR-4 Sugam can be utilized only if the revenue being clubbed falls into the above income sections.
by Vijay Singh | Fri, Aug 03 - 01:39 PM