Any income earned by a taxpayer with an intention to earn a profit is covered under the head of business and profession.
Income from Business (speculative or non-speculative business) & Profession is taxed at the applicable slab rate and is to be reported in ITR 3 when filing an Income Tax Return. (ITR 4, in case of the presumptive taxation)
There are two ways to add Business & Profession income to your Income Tax Return on Quicko.
- Regular Business & Profession Income
- Presumptive Business & Profession Income
Here's your document checklist and a complete guide on Income from Business & Profession and Taxes
To add Business Income
1. Regular Business Income on Quicko
A business whose turnover is more than Rs. 2 crores shall opt to be taxed regularly.
- In the Filing tab, navigate to INCOMES > BUSINESS & PROFESSION from the side nav
- Click on Regular Business Income
- Enter the Business Details
- Name
- Description
- Nature & Category of the business
- Enter Income Details
- Click on Save
To add Business Expenses
- Under the Your Business tab, click on Turnover or Profit/Loss
- Navigate to Expenses
- Click on Add
- Add your Expenses
- Click on Save
To Prepare Balance Sheet
- From Summary Screen navigate to Financials
- Click on Prepare Your Balance Sheet
- Add Assets and Liabilities
- Click on Save
To Claim Depreciation
- In the Assets tab, scroll down
- Click on Add Fixed Assets
- Add details of your Fixed Assets
- Click on Save
2. Presumptive Business Income u/s 44AD on Quicko
A business that has a turnover of less than Rs. 2 crores can opt for presumptive taxation.
- In the Filing tab, navigate to INCOMES > BUSINESS & PROFESSION from the side nav
- Click on Business Income u/s 44AD
- Enter the Revenue Details of the business
- Click on Save
Read more about Presumptive Taxation for Business
Here's a list of codes for various business & profession
To add Professional Income
1. Regular Profession Income on Quicko
For professionals having gross revenue exceeding Rs. 50 Lakhs
- In the Filing tab, navigate to INCOMES > BUSINESS & PROFESSION from the side nav
- Click on Regular Profession Income
- Enter the Profession Details
- Name
- Description
- Nature & Category of the Profession
- Enter the Income Details
- Click on Save
To add Profession Expenses
- Under the Business tab, click on Turnover or Profit/Loss
- Navigate to Expenses
- Click on Add
- Add your Expenses
- Click on Save
2. Presumptive Profession Income u/s 44AD
A professional having a gross revenue of up to Rs. 50 lakhs can opt for presumptive taxation.
- In the Filing tab, navigate to INCOMES > BUSINESS & PROFESSION from the side nav
- Under Choose Business Type, click on Profession Income u/s 44AD
- Enter amounts of Gross Revenue & Gross Profit
- Click on Save
Read more about Presumptive Taxation for Profession.
Note:
Profession-related expenses cannot be claimed as deductions if opted for the presumptive scheme.