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My friend is a doctor. He runs his own clinic. ...

My friend is a doctor. He runs his own clinic. He received a total fees of Rs900,000 in the last year from his patients. He received every penny in cash. He didn't hire any accountant. He doesn't have any expense bills. How can he file his income tax return? Can he file return without books of accounts ?


Last year means financial year 2017-18.

My friend is a doctor. He runs his own clinic. He received a total fees of Rs900,000 in the last year from his patients. He received every penny in cash. He didn't hire any accountant. He doesn't have any expense bills. How can he file his income tax return? Can he file return without books of accounts ?


Last year means financial year 2017-18.

0
Kanishka and Associates Aug. 09, 2018

Your friend should opt for section 44ADA of the Income Tax Act.

Rather all the small professionals like doctors, CA, CS should opt for section 44ADA.

Section 44ADA allows professionals to not maintain books of accounts. It further permits them to show 50% of fees receipt as taxable income from profession.

So, your friend can show Rs450,000 (viz 50% of total fees Rs900,000) and file his income tax return in ITR 4.

I am assuming that your friend is a resident individual.

0
Kanishka and Associates Aug. 09, 2018

This is called Presumptive tax scheme for professionals.

My friend is a doctor. He runs his own clinic. He received a total fees of Rs900,000 in the last year from his patients. He received every penny in cash. He didn't hire any accountant. He doesn't have any expense bills. How can he file his income tax return? Can he file return without books of accounts ?


Last year means financial year 2017-18.

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