My wife is running a beauty parlour having income of around Rs 20000 per month. She wants to file income tax returns. She is not maintaining any account books and separate bank account. Is it possible to file returns without maintaining books? Is it compulsory for that income?
2 Answers
Hi,
As her income (assuming there is no other sources of income), is below basic tax exemption limit of Rs 2.5 Lakh, it is not mandatory for her to file ITR.
But, yes, nothing wrong in filing NIL tax liability ITR.
She may consider filing ITR 4S on presumptive income basis.
Under the scheme of Preemptive Taxation, the small tax payers are not required to maintain any books of accounts and their profits are presumed to be a certain % of total sales.
If the income from business or profession is above Rs 1.5 Lakh (or) the total sales/turnover exceeds Rs 25 Lakh, maintaining books of accounts is mandatory.
Suggested readings :
Presumptive Taxation
https://www.relakhs.com/income-tax-return-filing/
You may consult a CA and file ITR.
Hi,
In such a case, you may advice her to file ITR for AY 2017-18 without fail.
Yes, last year there were lot of issues with ITR Processing in cases of Preemptive taxation. IT dept has asked for P&L statement and Balance sheet details in ITR.
Kindly read:
https://www.relakhs.com/defective-return-notice-139-9/
Please login or Register to submit your answer
She has other sources of income which came from Bank FDs(around 35000rs).
Income above 1.5 lakhs-maintaining book of accounts is mandatory-
Is it true?