How to fill financial particulars of  profession in ITR 4


Story Mode - #makeknowledgefree ( Real case )


Sir i am a contract employee..got 2 lakhs salary this year from the company and 10% of tds claimed there which is given in form 16A...so i am filing itr 4 as 44ADA...if i used 1.5 lakhs money for my personal expenses..should i show only 50,000 in E11(particulars of buniness)


 


Amlan - You have received professional receipt and not salary ...also please specify your profession ...if it is not a specified or notified profession , you cannot show income on presumptive basis under 44ADA ....As far as filling up financial particulars of profession is concerned , following business entity concept , personal finances/expenses incurred and professional income expenses entries are to be kept separate ...as on 31st March 2018 , from the trial ledger for the professional fees receipt , whatever the financial particulars status strictly w.r.t to the profession, that alone has to be displayed....check video answer options for this answer to see the process for doing it ----BUT MOST IMPORTANTLY FIRST CHECK WHETHER YOUR PROFESSION QUALIFIES FOR PRESUMPTIVE BENEFIT ...In other words is your profession listed under 44A(1)..


 


Sumita K - Thank u sir...Sir my profession is teaching in technical institute....You have written "whatever the financial particulars status strictly w.r.t to the profession, that alone has to be displayed"... but i dint expense on professional stuffs..viz computers,projectors etc are provided by institute where i work...and the reciepts i recieved as rs.2lakhs, expensed on my personal goods....then what should i fill in E11 field? Plz make it clear....Sir bs mujhe ye pta krna hai k yadi maine 50000 ka laptop kharida aur 10000 bank me bacha hai to mujhe bs 60000 hi bharna hoga na E11 me..ya fir pura 2 lakhs jo professional reciepts mila tha us sb ka byora dena prega?


 


Amlan - As on 31st March 2018 , whatever capital(money) balance you have from profession alone, you put that in capital side ....and in assets side , if you have utilized anything for the profession only then mention the value....... else if it is for personal use , then reduce the capital involved in profession ......if you have 60,000 left from profession as on 31.03.2018 but bought personal laptop costing 50,000 rs , then this is no longer a professional expenditure, so member capital for profession is now no longer 60000 but rather 60000- 50000=10000 Rs( E11) ...and what is the application of funds ...nothing it is lying in bank and so you shall show bank balance as 10,000 ....see answer options - video in this regard. (This is business entity concept - keeping the business/professional accounts different from the personal accounts )...the personal accounts is to be reflected in Asset liability schedule but is required only when total income crosses 50 lakhs