Hi,
I am little confused with taxation. There is one clause which says, if you are under taxable limit, have turnaround less than 2cr and have made profit less than 6% and then you need to get audited. This is confusing.
I am a freelancer. My income comes under taxable limit. I have turnaround (Intraday) of Rs 210.50 and loss of 104.50 in the previous financial year. So, turnaround is less than 2cr and have made profit less than 6%. Do I have to get tax audit?
I have paid taxes on my freelance income (TDS) but it sounds crazy to get tax audit in my case. Please correct me if I have interpreted clause incorrectly.
Like to hear it from salaried professionals who also trade in intraday. How do you file your returns? Do I have to use ITR4 in my case? Please elaborate with examples.
You can merge all Income while IT return and if you adds up both the income ie trading + Freelancing your profit will be more than 50 Lacs ( Professional Income ) or 2 Crore (business Income ) . Audit wont require if you meet the criterion. File the Return with true earning after clear workings.
So, its like sum total of all the income, even if its salaried income. Add all income, then it should be more than 6% of the turn around. Am I correct ?
Now while filing ITR4, I will keep income from freelance under salary and -104 loss in the speculative business. I haven’t seen ITR4, does it have column for turnaround and profit/loss?
Thanks for providing clarity on the matter. As you can see the amount, turnover is meager. Should I file ITR1 or go for ITR4. Will there be a problem if I file ITR1 this year ?