Hi,
Is it your actual income from teaching the students?
Can I deposit cash worth 9lac rupees over a span of 1 year and file tax stating that income.is from teaching students. I have left job so no income from salary. What can be the issues and how to overcome them?
No. I have cash and want to deposit. Next year I shall again start with job. So for one financial year, can this be done?
Yes you can file tax return stating that income from teaching. As you are involved in teaching you are doing business and you can file return under presumptive taxation basis. In presumptive taxation you have to show 8% profit of your turnover compulsory, and hence return can be filed on presumptive basis. Accordingly ITR forms are also available. But if you file return under presumptive basis you must have to -
File presumptive scheme for atleast 5 years in continuation
If you decide to show and file profits as per regular business (ITR-4) before the end of these 5 years, you will lose presumptive benefits and disallowed from presumptive taxation for the subsequent 5 years. (5 years shall be counted starting the year in which you first file usual taxes for such business).
Benefit of filing under this presumptive scheme is -
1.You don’t have to maintain accounting records
2.You don’t have to pay advance tax (from FY 16-17, assessee opting for presumptive taxation has to pay 100% advance tax by 15th March of that particular financial year)
3.You don’t have to get your accounting records audited
As I want to do this for one year only and then again resume a salaried job, it is ok to file.itr 1 ?
Yes, it is totally fine.
There is no Bar on earning income in cash. If you are filling Return for the same explaining the source of Income there is nothing wrong in that.
And you are free to do any type of work to earn your livelihood so you can do anything and there is no BAR for filling ITR-1 after filling ITR-4 for previous year.
Hi
If it is a genuine income, return can be filed for 1 year like this. No issues.
But, it sounds it is not a genuine income, hence doing this would be illegal and not advisable.
Hi,
There is no issues in earning in cash and paying taxes thereon.
However, if this is not a genuine income from teaching students then I would advise not to do it.
regards,
Nikhil.
You can do it but it is not advisable.
But if want to proceed, be ready with proper document because this will be questioned by income tax dept and if you failed to prove the genuineness of transaction then you may have to pay penalty for it.
Dear Sir,
A valid receipt shall be maintained for the receipts collected towards cash collected from students.
Cash collected from each student shall not be more than Rs.20,000/- Itr-1 cannot be filed ITR-3 shall be filed towards business income.
Regards,
Vishal.
No as you have said that you are doing business you have to opt for itr 4 also if you are starting job next year then you can file itr1