eFiling Income Tax Returns and benefits for Architects

eFiling Income Tax Returns and benefits for Architects

In general a Architect can earn income from these two ways

1.Salary income by way of working for any organisation.
2.Income from rendering professional services by way of incorporating a partnership firm, sole proprietorship firm, Company, Joint venture etc.

1.Salary income from firms engaged in rendering architectural services.

a)For individuals who are employed as a employee and having a employer and employee relationship there is no need to maintain any books of accounts.
b)TDS will be deducted for the employees under section 92B under income from head salary.
c)Filing of income tax return under section 139(1) would suffice the compliance requirement for the individual as a employee

Note: No additional expenses shall be allowed as a deduction from the salary income other than the deductions under chapter viA under section 80C to 80U.

2.Income from rendering professional services by way of incorporating a partnership firm, sole proprietorship firm, Company, Joint venture etc.

a)Books of accounts are to be maintained as per the 44AA of the income tax act 1961 in the following cases


i)where the gross receipts from the specified profession exceed Rs. 1,50,000 in any of the 3 years immediately preceding previous years relevant to current previous year, or not likely to exceed Rs 1,50,000 in the current previous year.

Following books of accounts need to be maintained as per section 44AA

1)All bills in original for those exceeding the amount of Rs 50 per bill
2)All bills as a carbon copy if amount exceeding Rs25
3)A Ledger
4)Journal
5)Cash Book

Deductions available for Architect's as expenditure

1)All direct expenditure viz, salaries paid to Architect's.
a)Attending some conference..? you can claim that expenditure.
b)You use lot of consumables while rendering services comprising of stationery.
2)Maintenance expenditure relating to house keeping as house keeping expenses even form a substantial part of the expenditure.
3)Indirect expenditure such as to administrative staff salaries, payment to parking and rent of the building if the building is taken on lease.
4)Practicing from home? yes you can claim the rent, electricity and maintenance of the same to the extent used for your own practice.

b) Yes..! no need to maintain books of accounts, neither maintain a register of bills nor maintain details of the stock of your consumables. Here is how you can do this.

As per the new amendment in the finance act 2016 a new concept of presumptive income is applicable to the doctors in the following cases.
i)For those Architect's whose form of business if in the nature of sole proprietorship, Partnership, or HUF, if the total gross receipts in the previous year done not exceed Rs. 50,00,000, there is not requirement of filing tax audit report for the said business, provided the rate of income declared on such presumptive income is not less than 50% of the gross receipts
ii)No books of accounts are required to be maintained under section 44ADA
iii)income shall be declared @ of 50% on the total receipts/ turnover in the relevant previous year.
iv)However Advance tax has to be paid even for such professionals in one installment which shall be 15th march of the relevant previous year.

Deductions allowed from the total income

Deductions under chapter viA shall be allowed under this head from section 80C till section 80U.
a)A Architect as an individual can claim deduction of Life insurance premium paid, Tuition fees to children(Up to a maximum of 2 Children), Fixed deposit, Investment in mutual funds, Investment in public provident fund, etc up to a maximum of Rs.1,50,000 per annum.
b)A Architect as an individual can claim deduction if any amount is paid for medical and health insurance policies of self, spouse, parents, children to a maximum amount of Rs.25,000, if the individual Architect is a senior citizen aged 60 years or more the deduction will be Rs.30,000