Individual Income Tax

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  1. Sarfraz Khan

    Sarfraz Khan New Member

    Dear Sir,

    I wanted to file a income tax return (FY 15-16) (AY16-17) for one of my friend and he has Total Income of Rs 400,000/- Per Annum.

    I wanted to know the following:

    1) While preparing his profit and loss account what expenses should I considered as an expenses.

    a. Can I claim mobile expenses?

    b. Can I claim Fuel expenses to visit clients?

    c. Can I claim subscription charges as he is consultant?

    d. Can I claim Travel Expenses for to visit office?

    e. Can you Please let me know process what I have mentioned here is right

    * I will calculate his revenue for the year

    * Then I will calculate expenses

    * Prepare a P&L then will file a income tax return on Net profit with ITR1 is it right process.
     
  2. sai tejesh(ca.final)

    sai tejesh(ca.final) Active Member

    You have to file ITR 4 not ITR1.
    proportionate of all expenses which you have said is to be disallowed,as it may includes personal expenses also.Generally 1/4th of expenses has to be disallowed,where it is difficult to segregate.

    If any expense was incurred purly for the purpose of profession,then claim total expenses.
     
  3. Sarfraz Khan

    Sarfraz Khan New Member

    Dear Sir,

    Thanks for your response; the total expenses are incurred for the purpose of profession only.

    Please clarity one more thing, do I need to prepare Profit and Loss account first then to calculate Income on Net Profit?
     
  4. Sarfraz Khan

    Sarfraz Khan New Member

    Dear Sir,

    Thanks for your response; the total expenses are incurred for the purpose of profession only.

    Please clarity one more thing, do I need to prepare Profit and Loss account first then to calculate Income on Net Profit?
     
  5. sai tejesh(ca.final)

    sai tejesh(ca.final) Active Member

    Yeah ofcourse.
     
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