Sec 44AA:- Maintenance Of Accounts By Certain Persons Carrying On Business Or Profession

• Prescribed Books1: – In case of Specified Profession2 if Gross Receipts exceed Rs.150000/- in all 3 years immediately preceding previous year.
• Any Books of Accounts3: –
  • In case of Specified Profession if Gross Receipts are less than 150000/- in any of 3 years immediately preceding previous year then assessee has to maintain books of accounts.
  • In case of Non Specified Profession if Total income exceed Rs.120000/- or Gross Receipts exceed Rs .1000000/- in any of 3 years immediately preceding previous year.
  •        In case of Non Specified Profession
    if Total income exceed Rs.120000/- or Gross Receipts exceed Rs .1000000/- in any of 3 years immediately preceding previous year.
  • Assessees covered u/s 44AD/44AF/44BB/44BBB are also required to maintain books if they claim that their income will be less than limit specified in respective section. e.g. u/s 44 AD limit is 50 % of Gross Receipt.  
  • Similarly, Assessees opting for presumptive taxation u/s 44AD are required to maintain books if they are covered under sub section 4* of the said section and their total income exceeds basic threshold limit. 
  •       *As per Sub section 4 of Section 44AD, if the assessee, after declaring profit for any previous year u/s 44AD, declares profit for any of the five consecutive succeeding years which is not in accordance with the provisions of Section 44AD he shall not be eligible to claim the benefit of the provisions of this section for five subsequent years succeeding the year in which the profit has not been declared in accordance with the provisions of Section 44AD.
    
    
  • U/s Sec 44 AD maintenance of books is required when two conditions are satisfied:-
    1. Claim lower profit than limit specified u/s 44AD
    2. Total Income exceed basic exemption limit.
    
    
• No Books: – In all other cases.1

1. Books of accounts are required to be maintained for 6 Years from the end of relevant Assessment Year.

Sec 44AB:- Audit Of Accounts Of Certain Persons Carrying On Business Or Profession 

• Audit of accounts is compulsory
  • In case of Business: – If Total Sales/ Gross Turnover exceeds Rs 1 Crore in any previous Year
  • In case of Profession: – If Gross Receipts exceeds Rs 25 Lakh 50 lakhs in any previous Year  (Applicable from FY 2016-17 onwords )
  • Assessees covered u/s 44AD/44AF/44BB/44BBB are also required to audit of accounts if they claim that their profit will be less than limit specified in respective section. e.g. u/s 44 AD Audit of accounts is required when two conditions are satisfied:-
    1. Claim lower profit than limit specified u/s 44AD (Limit of 8%)
    2. Total Income exceed basic exemption limit.
• Similarly, Assessees opting for presumptive taxation u/s 44AD are required to get their accounts audited if they are covered under sub section 4 and their total income exceeds basic threshold limit.
  Above limit is assessee wise and not business /profession wise e.g. If assessee has two business than turnover will be summed up.
• For calculation of turnover u/s 44AB, the turnover u/s 44AD/44AE shall be excluded.
• Above limit is assessee wise and not business /profession wise e.g. If assessee has two business than turnover will be summed up. 
• Audit Date:-
  • Normally 30th September.
  • In case, if assessee has International transactions, 30th November.
• Audit Report Form:- 3CA if audit required under any other law
  3CB if not covered above means covered under Income Tax.

Sec 44AD:- Income Of Any Business Presumed To Be 8 % 

• Applicability:-
  1. Eligible Assessee means Resident:- Individual/HUF/Partnership Firm
     firm
  2. Eligible Business:- All types of business except business covered u/s 44AE/Agency/Commission/Brokerage
  3. Turnover does not exceed Rs 1 Crore (2 crores with effect from FY 2016-17) in Previous Year
     If all above conditions are satisfied then assessee can declare estimated income from business:-
     8% of total turnover or more.
• Non Applicability:-
  1. Non Resident:-Individual/HUF/Partnership firm
     firm (excluding Limited Liability Partnership Firm)
  2. Company/LLP/BOI /AOP
  3. Turnover exceeds Rs 1 Crore (2 crores with effect from FY 2016-17) in Previous Year  
  4. Professional
  5. Assessee has not claimed deductions u/s 10A/10AA/10B/10BA/80HH/80RRB in relevant previous year.
• If Assessee opts for Sec 44AD and declares his income as 8 % of total turnover or more he should consider following points:
  1. Not allowed to claim any expenses or depreciation i.e. expenses covered u/s 30 to 38.
  2. Remuneration or Interest paid to partner u/s 40(b) shall not be allowed as deduction.  
  3. Maintenance of books of accounts u/s 44AA and Audit u/s 44AB not required.
  4. Advance Tax rules will apply, however assessee may opt to pay advance tax by 15th March of Financial Year.
  5. Where an assessee declares profit for any previous year u/s 44AD and he declares profit for any of the five consecutive succeeding years not in accordance with the provisions of this section, he shall not be eligible to claim the benefit of the provisions of this section for five subsequent years succeeding the year in which the profit has not been declared in accordance with the provisions of Section 44AD(1).
  6. If there is disallowance of any expenses it will be assumed that it has been already made in calculation of estimated profit. 
  
  
  Sec 44ADA:- Income Of Any Professional Presumed to be 50% of the Gross Receipts (Applicable from FY 2016-17)
  • Applicability:-
  1. Eligible Assessee means Resident in India:- Individual/HUF/Partnership Firm (excluding Limited Liability Partnership)
  2. Eligible Professions:- Professions referred in Section 44AA of the Act viz. Medical/Legal/Engineering/Architect/Accountancy/Technical Consultancy/Interior Decoration/Authorized Representation/Film Artist/C.S.
  3. Total Income does not exceed Rs 50 Lakhs in Previous Year
  If all above conditions are satisfied then assessee can declare estimated income from business:-
  50% of total gross receipts or more.
  • Non Applicability:-
  Non Resident: Individual/HUF/Partnership Firm
  • If Assessee opts for Sec 44ADA and declares his income as 50% of total gross receipts or more he should consider following points:
  1. Not allowed to claim any expenses or depreciation i.e. expenses covered u/s 30 to 38.
  2. Maintenance of books of accounts u/s 44AA and Audit u/s 44AB not required.
   
• Applicability of Sec 44AA & 44AB:-
  1. 1. Claim lower profit than limit specified u/s 44AD
     2. Total Income exceeds basic exemption limit.
  If assessee claim lower profit but his total income is lower than exemption limit then Sec 44AA & 44AB does not apply.  
  
  
  Example:
    1.    Assessee has two Business

  	Retail	+	Wholesale
  	80 Lakh	+	30 Lakh

  Sec 44AA : Applicable ( Retail and Wholesale both )
  Sec 44AB : Applicable ( since total turnover exceeds 1 Cr.)
  Sec 44AD : No relevance
    2. Assessee has Business & Profession

  a)	Business	+	Profession
  	130 Lakh	+	40 Lakh

  Sec 44AA : Applicable on Business (Assessee may opt for Sec 44ADA for Professional income and 44AA may not be applicable)
  Sec 44AB : Not Applicable on Profession (Assessee may opt for Sec 44AD for Business turnover and 44AB may not be applicable)
  Sec 44AD : Assessee may opt for Sec 44AD for Business (Profession not covered u/s 44AD)

  b)	Business	+	Profession
  	70 Lakh	+	15 Lakh

  Sec 44AA : Applicable for Business (Assessee may opt for Sec 44ADA for Professional income and 44AA may not be applicable)
  Sec 44AB : Not applicable (Turnover is less than Rs 1 crore in business and less than Rs.50 lakhs in profession)
  Sec 44AD : Assessee may opt for Sec 44AD for Business ( Profession not covered u/s 44AD)
    3.    Assessee has three Business

  a)	Retail	+	44AE	+	44AD
  	80 Lakh	+	30 Lakh	+	35 Lakh

  Sec 44AA : Applicable only on retail business.
  Sec 44AB : Applicable on Retail ( Rs. 80 Lakhs) since 44AD is not applicable on retail.
  Sec 44AD : Applicable on 35 LakhsNote:
  In 3(a), it has been assumed that the assessee has profitability below 8% on turnover of Rs. 80 Lacs.
  
  
  Please feel free to send us your queries using the form below or you may also mail your queries at support@clickntax.com. We would be happy to assist you.  

• Sec 44AB:- Audit Of Accounts Of Certain Persons Carrying On Business Or Profession
• 
  
• Audit of accounts is compulsory.The Due Date of filing the Tax Audit Report under Section 44AB is 30th Sept. For all other assessee’s who are not liable to get their Tax Audit done under Section 44 AB.An Assessee is liable to get his Tax Audit done by a Chartered Accountant mandatorily, if in the previous year,
• • In case of Business: – If Total Sales/ Gross Turnover exceeds Rs 1 Crore in any previous Year
  • In case of Profession: – If Gross Receipts exceeds Rs 25 Lakh 50 lakhs in any previous Year ( Applicable from Financial Year 2016-17 onwards) 
  • Assessees covered u/s 44AD/44AF/44BB/44BBB are also required to audit of accounts if they claim that their profit will be less than limit specified in respective section. e.g. u/s 44 AD Audit of accounts is required when two conditions are satisfied:-
    1. Claim lower profit than limit specified u/s 44AD (Limit of 8%)
    2. Total Income exceed basic exemption limit.
• Similarly, Assessees opting for presumptive taxation u/s 44AD are required to get their accounts audited if they are covered under sub section 4 and their total income exceeds basic threshold limit.
  Above limit is assessee wise and not business /profession wise e.g. If assessee has two business than turnover will be summed up.
• For calculation of turnover u/s 44AB, the turnover u/s 44AD/44AE shall be excluded.
• Above limit is assessee wise and not business /profession wise e.g. If assessee has two business than turnover will be summed up. 
• Audit Date:-
  • Normally 30th September.
  • In case, if assessee has International transactions, 30th November.
• Audit Report Form:- 3CA if audit required under any other law
  3CB if not covered above means covered under Income Tax.

Which ITR Form should I file?

If you have not received your refund till date, it could be due to the following reasons:

1. Your Income Tax Return has not been processed yet.
Once the return is processed you may receive a Refund (if determined). To check the status of your e-Filed IT Return, login in the Income Tax e-Filing website and go to 'My Account' → 'My Returns/Forms'.

2. Your Income Tax Return has been processed but the Income Tax Department has determined no refund.
3. Your Income Tax Return has been processed and a refund has been determined, but the Cheque/ ECS credit could not reach you.This could be because of: wrong address, not being available at home (door locked) or wrong Bank Account number for ECS credit.To check if your Refund has returned back to the Income Tax Department, login and go to 'My Account' → 'My Returns/Forms' and check the status

2. I checked the status of my IT Return and it is displayed as 'Refund Returned'. How can I apply for it

 again?

Login in the Income Tax e-Filing website and go to 'My Account' → 'Refund Re-issue request'. Select the mode of re-receiving the refund: ECS or Cheque, Provide the Bank Account number (if changed) and Provide Address details.

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3. My Bank Account Number has changed. I want to change the Bank Account Number which I mentioned in my Income Tax Return.

You can only change your Bank Account Number if you had a refund failure i.e your IT Return is processed and a refund was generated for you but you did not receive it.
If you wish to change the Bank Account Number for Refund failure case, then login in the Income Tax e-Filing website and go to 'My Account' → 'Refund re-issue request'. Select the mode through which you wish to receive the refund- ECS or Cheque. Enter the new Bank Account Number and provide address details. Submit the request.

Once the request is submitted, your new Address is updated with the Income Tax Department.

---

4. My refund failed to reach me as my Address has changed. I want to raise a request for refund re-issue with my new Address.

You can only raise a request of refund re-issue if your refund failed to reach you and was returned to the Income Tax Department. In that case, login in the Income Tax e-Filing website and go to 'My Account' → 'Refund re-issue request'. Select the mode through which you wish to receive the refund- ECS or Cheque. Provide the new Bank Account Number (if to be changed) and provide the new Address. Submit the request.

Once the request is submitted, your new Address is updated with the Income Tax Department.

---

5. My Address has changed. I want to change the Address/ e-mail ID/ Mobile Number which I mentioned in my Income Tax Return.

Login in the Income Tax e-Filing website and go to 'My Profile Settings → 'Update Contact details'. Provide the new Address/ e-mail ID/ Mobile Number and submit. Once submitted, your Address / e-mail ID / Mobile number is updated in your profile and also sent to the CPC (Central Processing Center) to update on the Income Tax Return.

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6. How to use the Income Tax Department's e-Filing website

1. The first step is to either login or register on the website.
2. Once you enter your PAN number, the website will tell you if you're already registered.
3. If you've e-Filed before, chances are that you might already be registered. Please search your email inbox for "incometaxindiaefiling.gov.in" to look for information that might be useful.
4. If you remember your password, login. Note: Your User ID is your PAN number.
   If you don't remember your password, you need to Reset your password.
5. If you're not able to reset the password with any of the three options provided, please send an email to - validate@incometaxindia.gov.in with the following details
   PAN:
   PAN holder's Name:
   Date of Birth:
   Father's Name:
   Registered PAN address: 

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7. What does my refund status mean?

Refund Statuses:

• No e-Filing has been done for this assessment year
• Not Determined
• Refund Paid
• demand no refund
• ITR processed refund determined and sent out to Refund Banker
• Refund Unpaid
• Contact Jurisdictional Assessing Officer
• Demand determined
• Rectification processed refund determined and sent out to Refund Banker
• Rectification processed demand determined
• Rectification processed no demand no refund

1. No e-Filing has been done for this assessment year

Step 1. What does this mean?

This could mean either:

• You may have filed your returns in physical form (paper filing) and not e-Filed.
  The Income Tax Department does not provide the refund status for paper filed returns via our service.
• Or your I-T Return was not filed at all.

Step 2. What do I do now?

• Double check the Assessment Year that you checked your refund status for.
  Remember, Financial Year (FY) 2013-14 corresponds to Assessment Year (AY) 2014-15
• If you haven't filed yet e-File your Tax Return using ClicknTax now
• You can also get help from a tax expert who can prepare & file your return for you.
  Click here to buy an expert assisted plan

2. Not Determined

What does this mean?

This means that the Income Tax Department has still not processed your Income Tax Return or determined the refund yet.

Please check your refund status after a month to see if it has been updated.

3. Refund Paid

Step 1. What does this mean?

This means:

• The Income Tax Department has sent the refund to you (by Cheque or by direct debit to the Bank Account Number you provided while e-Filing).

Step 2. What do I do now?

• If you received your refund, congrats! See you again next year :)
• If your refund status is "Refund Paid", and you haven't received it yet, here's what you need to do:
  If you had opted for direct debit to your bank account while filing and you haven't received your refund, you need to immediately contact your own bank or the State Bank of India to check for any errors.
  You can contact SBI

  a. Via email at itro@sbi.co.in

  b. On phone at 1800 425 9760

  c. By post at
  Cash Management Product,
  State Bank of India, SBIFAST,
  31 Mahal Industrial Estate,
  Off: Mahakali Caves Road,
  Andheri (E), Mumbai – 400093

  
  
  If you opted for refund via cheque while filing, but haven't received the cheque check out the Speed Post tracking reference number for your cheque on the Refund Banker's website.

4. No demand no refund

Step 1. What does this mean?

This could mean either:

• The most common case are you filed with no refund and no tax due. In that case, you're all set for this year.
• It could also be that you did file for a refund, but the Income Tax department denied the refund because their calculations did not tally with yours.
  This generally can happen because of mismatch of TDS data, incompletely or improperly filled sections in the original filing.

Step 2. What do I do now?

• If you forgot to include some deductions while filing, you can revise your return
• When the Income Tax Department differs on the information you’ve provided, they would have also sent you an intimation explaining why.
  You can now fix the errors and file a rectification to support your refund claim.
  You can get help from an expert who can go through your tax notices and tax returns to best guide you. The expert can also help you file a rectification.
  Buy an Expert Assisted Plan

5. ITR processed refund determined and sent out to Refund Banker

Step 1. What does this mean?

This means your Refund Claim has been accepted by the Income Tax Department.

After the Refund Claim has been accepted, the Income Tax Department sends the refund details to the Refund Banker who is tasked with processing your refund.

Step 2. Next Steps:

The Refund Banker service will give you the latest details of your refund that may include speed post tracking, error messages in case of incorrect bank details etc.

Click here to check your the details of your Refund

6. Refund Unpaid

Step 1. What does this mean?

This could mean either:

• The Income Tax Department has sent the refund to you, but the address provided to the IT department is wrong, hence the cheque was undelivered.
• The bank account details (Account Number or IFSC Code) that you submitted to the I-T department is wrong, and hence the refund wasn't processed.

Step 2. What do I do now?

• Firstly, confirm the cause of the problem by entering your PAN number and Assessment Year on the Refund Banker's website.
• Once you have identified the cause, you need to login to your IncomeTaxIndiaEFiling.com account and then correct the information with the I-T department.
• After you correct the details, you need to apply for the "Refund Reissue Request" from within your IncomeTaxIndiaEFiling.com account.

Get Expert Assistance

7. Contact Jurisdictional Assessing Officer

Step 1. What does this mean?

This could mean:

• This typically indicates that the I-T department needs further clarification / Information regarding your Income Tax Return that you filed. The Assessing officer would like to discuss things further with you.
• In some cases, this could also mean that you have some past taxes outstanding with the I-T department which will be adjusted against the tax refund requested by you.

Step 2. What do I do now?

• On receiving such a message, contact the AO (Jurisdictional Assessing Officer) for your region.
  Click here to find out details about your AO
• You may contact your Assessing Officer via telephone or by post.

8. Demand determined

Step 1. What does this mean?

This means:

• Your refund request has been rejected, and in fact the I-T department finds that you owe them unpaid taxes instead.
• You may also have received a notice from the Income Tax Department with the exact amount of tax outstanding and the reason for the same.
  This can happen because of incompletely or improperly filled sections in the original filing, withholding income information, or mismatch in TDS.

Step 2. What do I do now?

• Read the intimation the I-T Department has sent you carefully and figure out where the problem occured. Cross check with your own e-Filing records to verify the information you provided was accurate.
• If you find that your own refund request was indeed erroneous, pay the tax demanded by the I-T department within the time limit mentioned in the intimation.
  If you think the I-T department made a mistake, you can update your information if necessary and file a rectification supporting your refund claim.
• We can connect you to an expert who can go through your tax notices and tax returns to best guide you. They can help you file a rectification.
  Buy an Expert Assisted Plan

9. Rectification processed refund determined and sent out to Refund Banker

What does this mean?

This message again goes out only to tax payers who had been served an intimation to rectify their original returns.

The rectified returns may be completely or partially accepted by the IT department.

Based on the rectification, the I-T department has calculated the refund amount and forward a refund payout request to SBI.

Such a message is shortly followed by a revised intimation and the refund amount from the IT department.

10. Rectification processed demand determined

What does this mean?

This message again goes out only to tax payers who have been served an intimation to rectify their original returns.

The rectified returns may be completely or partially accepted by the IT department.

However the I-T Department maintains that you have outstanding unpaid taxes. You will also receive an intimation with the exact amount that is outstanding and will have to pay this off within 30 days of receipt.

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We can connect you to a tax expert who can go through your tax notices and tax returns to best guide you. They can then help you with the appropriate course of action.

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11. Rectification processed no demand no refund

What does this mean?

This message again goes out only to tax payers who have been served an intimation to rectify their original returns.

The rectified returns may be completely or partially accepted by the IT department.

Based on the rectification, the department arrives at the conclusion that you neither owe any extra taxes, nor do you qualify for any sort of refund of taxes already paid.

You will receive a revised intimation clarifying this fact.

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We can connect you to a tax expert who can go through your tax notices and tax returns to best guide you. They can then help you file a rectification.

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I want to check the status of my ITR-V

After successfully submitting your income tax return, you get an acknowledgment from the IT department called the ITR-V or Income Tax Return-Verification. You need to submit it back to complete your e-filing.

1. It's in your mail!

When you e-file your Income Tax Return, the Income Tax department sends your ITR-V to the email address you selected within 2-3 days of e-filing.

Things to keep in mind -

1. If you file close to the deadline (i.e. July 31st), they will take more time to send your ITR-V. Income Tax Department took around 7-8 days to send out the ITR-V in many cases.
2. Sometimes the email containing the ITR-V can be found in the SPAM folder of your email provider. The email is sent out to you by the I-T department from donotreply@incometaxindiaefiling.gov.in Search your spam folder.

2. The Income Tax Department's official portal

The Income Tax Department makes the ITR-V available on their official portal. Login on the government website -www.incometaxindiaefiling.gov.in

Step 1. Login to your account. The username is your PAN number. (ClearTax cannot help you with your password on this government website)

Step 2. Once you login to the website, you will see a Dashboard – click on "View Return/Forms"

Step 3. You can see the status of all the Returns filed by you, now click on the acknowledgement number (ack no)

Step 4. Click under Download/Status Description ITR-V/Acknowledgement to download your ITR-V