Retired yet professional income treatment of tax
Stephen
(Querist) 30 December 2017
This query is : Resolved
Dear Tax Experts,
I got retired few years back, however this year FY 17-18 I undertook certain professional work as contract, while this contract was completed I was paid contract money after deducting 10% tax. Post this I am currently engaged with another company without any contract etc as work from home part-time work with amount being paid monthly and no deduction of tax (as amount received is <= 10K) Now while filing tax return which forms to be used and also can I claim 50% exemption by clubbing both contract + Work from home earning as professional income without maintaining a/c books.
Appreciate your advice with pros and cons.
Thanks
Stephen
Sankaranarayanan
(Expert) 30 December 2017
Are you have any registered firm? what is the nature of contract? if you do not maintain any books of records then you can file under 44AD.To encourage businesses to receive payments digitally, the govt has also provided an incentive to Businesses who receive payments digitally. Profits on payment received digitally by businesses would be considered at 6% of the total amount received digitally. This incentive is applicable from the financial Year 2016-17 onwards.For payments received in cash, the profits would continue to be considered at 8%. The above incentive is only provided to businesses under Section44AD Section 44 AD only applies in case of Individuals, Partnership & HUF provided they are Resident in India. This section does not apply in case of Limited Liability Partnerships as they have been specifically excluded from this section.You have to file through 4
Guest
(Expert) 30 December 2017
ITR 3 form
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R.Ramachandran
(Expert) 30 December 2017
Only the following professions are eligible for the presumptive income of 50% which you are talking about.
Legal, Medical, Engineering, Architect, Accountancy, Technical consultancy, Interior Decoration, Company Secretary, Profession of Information Technology, Film Artist etc.'
First check up whether you fall under any of the above category.
Stephen
(Querist) 30 December 2017
Dear Respected Sirs,
Many thanks for answers.
I provide further clarifications to your response.
a) I don't own a company nor I have any register company. I am just a individual from IT background, utilizing my skill got as contractor in Non-IT and complete that assignment.
b) As currently I work from home as part-timer etc. Doing Non-IT work as Research Analyst etc and obtain type of work completion amount into my bank a/c and this may go till this financial year end and into next financial year as well. Considering the above 2 points, I hope I can club both income as professional non-maintenance of book of a/c and yet claim 50% presumptive income by filing ITR3.
Appreciate your final clarifications.
Thanks
Stephen
Guest
(Expert) 30 December 2017
Better get advice from some experienced tax consultant.
