Queries about Income Tax filing

Queries about Income Tax filing

I am director of a pvt company and receives professional fees from company u/s 194J. The company has paid 2.5L in FY 14-15 and remaining 3.5L is pending to be paid. The company has also deducted tds 25000 and issued form 16A to me. I have a sole-proprietor business with gross turnover 42000 in FY 14-15 and comes u/s 44AD as presumptive income. I also had income of 2000 from book royalty. Please answer these queries related to above issue:

1) Which ITR form to use for FY 14-15 (4/4S)?
2) Which heading professional fees from company be shown (Income from business/salary/other sources)?
3) Which heading sole-proprietor business income be shown (Income from business)?
4) Which heading book royalty be shown (Income from other sources)?
5) Which schedule TDS1 or TDS2 be filled in form?
6) Is it correct to pay director u/s 194J and issue form 16A ?
7) Do i need to pay tax for total income of 6L from company or only 2.5L received in FY 14-15?

Looking forward your reply.
Thank you.

Asked 9 years ago in Income Tax

In our view since you are director of the company we need to ask whether you are drawing any salary ?

If yes then the professional income comes under Income from other sources. If not it shall be shown under Income from Business/Profession and you need to use ITR form 4.

Second since you are having Sole proprietorship business and you are declaring profit U/s.44AD you need to use Form 4S.

We suggest you to show professional income under Other sources and business income i.e. sole proprietorship income under 44AD . Royalty under Other sources.

In you query you need to check how the company has deducted TDS whether full amount in 2014-2015. If yes then you need to declare full amount in 2014-2015

Shyam Sunder Modani

CA, Hyderabad

1409 Answers

164 Consultations

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Thanks a lot Shyam Sundar sir and please reply if following conclusion is right.

1) I can file ITR 4S since both professional income & business income are there.

2) Incomes can be shown in following headings:
Professional income (Income from other sources)
Business income (Income from business u/s 44AD)
Royalty (Income from other sources)

3) As per my knowledge "salary income should be taxed in the year in which it is due or received, whichever is earlier". If this is true then should i declare full amount 6L for FY14-15?

Asked 9 years ago

You need to file form 4. Professional income is not salary income. Company has deducted tds under 94j and it is not salary. U can claim expenses if u want from professional fees and rest can show as income

Shyam Sunder Modani

CA, Hyderabad

1409 Answers

164 Consultations

Talk to Shyam Sunder Modani

This question is addressed to CA Shyam Sunder.

B Vijaya Kumar

CA, Hyderabad

1018 Answers

124 Consultations

Talk to B Vijaya Kumar

1 ITR 4

2 Income from business.

3 other sources as income is meagre.

4 other sources

5 schedule meant for reporting TDS & TCS

6 Based on contract for services it may be correct.

7 If you have raised bill for Rs 6 lakhs then it is good to offer 6 lakhs.

8 It is preferable to in form no 4 show under professional income to claim expenses of business.

9.Please offer inco10me from profession under income from business.

10 kindly examine whether the contract is for employment or services and income will be taxable accordingly either salary or business income. And salary income you do not get any deduction of expenses.

Vijay N. Kale

CA, Hyderabad

248 Answers

13 Consultations

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