I have income from consulting (Professional Engineering Consulting), share delivery and intraday. What I was thinking was to report my business income below 44ada in the assumed income section (in the no-account section in ITR 3) and intraday income (not income, but a loss that can be carried forward to future years) as my business income accordingly in the income statement. But to be sure, as this was my first year of investing/trading stocks, I appointed a CA to provide my professional advice income as a business (selling services) and intraday losses as short-term capital losses. What am I missing? Or was I wrong? Please help if possible to understand this. Thanks in advance Books/accounting records should be kept if gross receipts are greater than Rs. 1,50,000 in the previous 3 years for an existing occupation. This also applies to a newly established profession whose gross income is expected to exceed Rs 1,50,000. Below are the additional requirements in the case of a person practicing a medical profession – doctors, surgeons, dentists, pathologists, radiologists, etc. The books of each year must be kept for a period of 6 years from the end of that year. Failure to keep books: If you do not keep the account books as required, you may be fined Rs 25,000 or, in some cases, when you have international transactions and have not kept information and documents for those transactions – 2% of the value of each international transaction. It would be prudent to keep your business books and track all your expenses and income in a methodical manner. The deadline for review and submission of the report is 30 years.

November for specified international or domestic transactions. Account verification is mandatory by an auditor for the following persons The Income Tax Act has established the books of account that must be kept for income tax purposes. These were prescribed in Article 44AA and Rule 6F. Or it can fill ITR 4 as a case of accounts without books and submit it accordingly. Even if you don`t want to keep proper books and declare a profit of less than 8%, it`s wise to fill out the full income statement instead of not using an account case, as this can result in an erroneous notification from the income tax department. The accounting records to be kept are required by Rule 6F. The following professions are required to keep accounting books/accounting records: However, since he did not keep books, he can be punished for not keeping business books. Schedule a 30-minute interview with a top-notch listener. It`s fast, easy and confidential! It is not recommended to report your professional income under any other source of income. Since I have unlisted shares (first listed and then both delisted by BSE and NSE) and I do not have accounting books, ITR-3 is applicable to me. My business is the construction and maintenance of buildings.

BUt for the 2012-13 fiscal year where you filed ITR4S showing a gross revenue of 18L. I hope that you were not subject to VAT because you had exceeded the basic VAT exemption limit and were therefore responsible for the registration and were therefore obliged to keep accounts. With regard to the filing of the tax return, he has professional income only as income from work. Since the books are not kept, he must report the amounts for his debtors, creditors, cash balances at the end and the amounts for gross income, gross profit, expenses and net income in the profit and loss account at the end. You must complete the balance sheet and the P&L if you declare less than 8%, otherwise your declaration could be treated as an erroneous declaration. If your total income is less than Rs. 2.5Lakh, you can choose not to opt for 44AD. Otherwise, you cannot display less than 8% profit. It is advisable to create account books, as this can save significantly on the payment of income tax. You can contact your nearest auditor to file returns without a book. If I fill in both, the business income doubles. I tried the latest ITR-3 JAVA software from 19.08.2019 (PR 3.2).

Even if you can declare more than 8% of the profit with the 44AD provision (no account case), the profit of your business will be Rs.1 lakhs. If, after adding all sources of income, your total income is less than Rs 5,000,000, you are not taxable. No problem.. in this case, your total income would be less than BEL!! Still confused if in this case I still have to fill in the NO ACCOUNTS CASE section of the balance sheet or do I have to ignore it? If the taxpayer fails to keep books and records in accordance with the requirements of section 44AA, a penalty may be imposed under section 271A. The maximum penalty that can be imposed is Rs 25,000. However, if the taxpayer can prove that there is a reasonable reason for not keeping accounting records, such a penalty cannot be imposed. Please see Section 44AA of the Income Tax Act 1961. As a result, some professionals are required to keep books of account and other documents for income tax purposes.

Please check the specified limit values. ITR3 can also be used for the presumed evaluation u/s. 44AD… which means: «No books of accounts» (with declaration of capital gain) If the total income including 8% is 25 lakes to Rs.5 lakes, it is better to claim 44AD. And in which of the above cases do I have to fill in NO ACCOUNTS CASE on the balance sheet? I hope you find the information useful, if you do, please rate it 5 and give your valuable feedback for my improvement. As you suggested, I will only complete item 61 (CALCULATION OF DEEMED BUSINESS INCOME UNDER SECTION 44AD) in section P&L of ITR3 for AY: 2019-20. Dhirajlal Rambhia (SEO Sai Gr. Hosp.) (128374 points) Responded 01 April 2018 Get tax answers from world-class CAs. It`s fast, easy and anonymous! Yes, he can file a return with the same under income from other sources. If you choose 44AD, it may not work otherwise. Item 64 (IF REGULAR BUSINESS OR PROFESSIONAL BOOKS ARE NOT KEPT, provide the following information for the previous year 2018-19 in relation to the business or profession). I only have the turnover and profit, but the actual profit is well below 8% of sales, so I can`t choose 44AD.

I don`t have all the details of P&L and BS. So, can I select NO ACCOUNT CASE in ITR-3? I have submitted my business statements for the past few years U/s 44AD @ 6%/8% (as applicable) in ITR-4. However, the turnover shall be below the limit referred to in Article 44AA. Yes, you can report a lower profit, but you must complete your balance sheet and income statement with ITR 3. RAJA P M («Do what is right. !!!») (115689 points) Answer on 01 April 2018. Item 61 (CALCULATION OF DEEMED BUSINESS INCOME UNDER § 44AD).