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44 ad in itr 4

Gaurav (Business) (58 Points)

27 November 2016

I do 2 businesses. One of retail and one of home tuitions. My Gross receipts are 2,60,000 and net profit is 2,45,000. Since it is >8% I come under 44 AD.

I also have winning from lotteries from internet. So I filled ITR 4. And filled No Books of Account case in Profit and Loss.

Since my cash in hand was 0, I filled 0 in Balance Sheet No Account Case. I got intmation notice of Section 31 (Balance Sheet and P/L A/c not filled). What should I do ?

Also I forgot to fill coloumn no. 35i of BP (Profit from 44 AD).

Should I fill that column or should I show cash in hand amount ?

Aslo I do not know what is cash in hand? Should it include my savings bank balance (Since I do not have current A/C)

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21 Replies

amit aggarwal (Tax Professional) (80 Points)
Replied 27 November 2016

Check if you have selected "YES" in liable to maintain account. if so, login to IT portal and go to pending actions. Under response link go through the error and take appropriate action accordingly. Also, if required to file revised ITR, mention "return filed in response to notice .........."

Gaurav (Business) (58 Points)
Replied 27 November 2016

I have entered NO in both the fields. Whether liable to maintain A/cs as per section 44AA and audit under 44AB

But I have not entered any figure coloumn no. 35i of BP (Profit from 44 AD).

I did this previous year year also but that was accepted.

Gaurav (Business) (58 Points)
Replied 27 November 2016

I have entered NO in both the fields. Whether liable to maintain A/cs as per section 44AA and audit under 44AB

But I have not entered any figure coloumn no. 35i of BP (Profit from 44 AD).

I did this previous year year also but that was accepted.

Hitesh Khanna (Accounting & Finance Taxation Company Law Audit ) (839 Points)
Replied 28 November 2016

You have missed out certain crucial points in your Income Tax Return.
This time I would advise you to consult a CA or Tax advisor who can make you understands certain points.
Else in order to comment further I would require a copy of the notice.

Gaurav (Business) (58 Points)
Replied 28 November 2016

I am attaching the intimation recieved.

Intimation is under 44AA. But I want my return to be under 44AD.

Attached File : 1717562 20161128102617 itr.jpg downloaded: 206 times

RAM KUMAR GOEL (PROPRIETOR) (87 Points)
Replied 28 November 2016

Dear Gaurav ji, you have not mentioned whether you have filled up other requirements for no books case like in Balance Sheet amount of sundry debtors, sundry creditors, stock in hand also in P&L schedule amount of gross receipts, gross profit expenses and net profit. You will have to complete these figures and then the income computed u/s 44AD will have to be filled in the relevant column in schedule BP.

Ravinder Singhal (Compliance) (497 Points)
Replied 28 November 2016

you received notice under section 139(9) which means defective return

Ravinder Singhal (Compliance) (497 Points)
Replied 28 November 2016

you can revise it

Ravinder Singhal (Compliance) (497 Points)
Replied 28 November 2016

go to incom e tax login go in e-file menu and select return under section 139(9) or can search before on it on net

amit aggarwal (Tax Professional) (80 Points)
Replied 28 November 2016

You need to go through your return crucially. Most of the notices for Section 139 are computer generated. As you mentioned that "I forgot to fill coloumn no. 35i of BP (Profit from 44 AD)". May be possible computer identifies your income as NIL under 44AD and thus, you are supposed to be covered under 44AA(2)(iv). For more clarity show your filed ITR 4 to a tax expert and revise your income tax return through a process i mentioned in my earlier post.

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Gaurav (Business) (58 Points)
Replied 28 November 2016

Actually I filled the information for no books case in Balance Sheet

amount of sundry debtors = 0 ; sundry creditors = 0 , stock in hand = 0 cash in hand = 0

(these are 0 because I sold all the copies I purchased and there are no credit remaining in my a/c)

And in P&L schedule amount of gross receipts = 2,60,000 gross profit = 2,45,000 expenses= 0 and net profit = 2,45,000

amit aggarwal (Tax Professional) (80 Points)
Replied 29 November 2016

I just tried some experimenting on excel utility of ITR 4 of AY 2015-16. Item 35 is made up of two things 33 (income other than section 44) and 34x (income of section 44). So its possible that you received notice cz you didn't filled amount into column 34i. You shall revise your return in order to correct defective return.

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RAM KUMAR GOEL (PROPRIETOR) (87 Points)
Replied 29 November 2016

Then you should first check title page of ITR-4 "whether you are liable to maintain books of accounts" it must be filled as 'NO" and then correct Schedule BP by filling Rs. 245000/- as income u/s 44AD and file ITR u/s 154. All other things seems to be right apparently.