Non filing of return
sachin lokhandwala
(Querist) 26 October 2012
This query is : Resolved
dear sir
my client is labour contractor during FY 2008-09 the principal has deducted TDS on total labour contract payment and my client has not filed return of income now he has received notice from income tax department asking him to show his return of income now my client can file his return for fy 2008-09 what will be penalty can he save him self from penalty of rs. 5000/-
i want to file his return u/s 44ae presumptive taxation @ 8% on total receipt can i file the same and should he get all the deduction for that year.
kindly suggest
B.Chakrapani Warrier
(Expert) 28 October 2012
Penalty u/s 271F of the Income tax Act,1961 will be initiated. If reasonable cause for the failure to file return can be proved, penalty proposal will be waived u/s 273B of the said act.
Labour contractor's can opt for 44AD ,for FY 2008-09, if they so wish, if the gross receipts does not exceed Rs.40 lakhs per annum.
