Defective return u/s 139(9) error code 31

Rahul Mishra (studying) (34 Points)
Replied 02 August 2016

Hi Manoj,

u can submit a revised return just by filling some amount in cash balance mentioned under the head No Account Case in ITR-4 then your return will be automatically rectified.

Eswar Reddy S (CFO- at NHTF) (58213 Points)
Replied 02 August 2016

This some thing went wrong.They have not updated the ITR properly.Usually if at all any error is there it should show while generating X M L.The decision was taken by IT after filing the returns i.e.recently to attach balance sheet.

Eswar Reddy S (CFO- at NHTF) (58213 Points)
Replied 02 August 2016

So file a return under section 139(9) to rectify the defect after giving few figures to balache sheet.Balanceet should match.It will be proper reply if you do filing under 139(9) instead of revised return.

Kamalakar Agashe (Chief Engineer Turbine) (92 Points)
Replied 03 August 2016

I can;t imagine an ITR-4 without Balance Sheet. Do you mean you don't have a Bank Account and not receive invoice payments through cheques or NEFT payment? Don't you use a Mobile for Business? Is it not an asset? Is there no depreciation for it?

Eswar Reddy S (CFO- at NHTF) (58213 Points)
Replied 03 August 2016

Hello,

Imagine a doctor working in the hospital.Usually Tds will be deducted by the hospital under 194J.Though doesnot have any assessts if he wants to ITR-4 he should attach BS and PL.What assets he will be having if everything provided by the hospital

Eswar Reddy S (CFO- at NHTF) (58213 Points)
Replied 03 August 2016

Earlier there was an option to skip the BS for small tax payers.But this year mandatory.But able to generate X M L without any error...

Kamalakar Agashe (Chief Engineer Turbine) (92 Points)
Replied 03 August 2016

Originally posted by : Eswar Reddy

Hello,Imagine a doctor working in the hospital.Usually Tds will be deducted by the hospital under 194J.Though doesnot have any assessts if he wants to ITR-4 he should attach BS and PL.What assets he will be having if everything provided by the hospital

Ok, I agree. What about Balance in Bank account as on 31/03/2016 and Cash in hand?

Eswar Reddy S (CFO- at NHTF) (58213 Points)
Replied 03 August 2016

Your point is valid but his question is different.

He was able to file earlier years without Balance sheet and PL andthere was no problem.But this year he got notice though filed in the same way

Eswar Reddy S (CFO- at NHTF) (58213 Points)
Replied 03 August 2016

IT Dept has to intervene on this as one is able to generate X M L without any errors though BS not filled.Then how it can say defective...Number of 139(9) received by on this matter for this year in practice....

Manoj1234 (Consultant) (27 Points)
Replied 03 August 2016

Dear All,

Thanks for the active discussion on the topic.

I have to calrify that previous two years I have filed the ITR-4 with 0 entered in all colums of the Balance Sheet. This way the balance sheet was balanced. However I had filled in proper values in the Profit and Loss section. I keep a record of all my invoices and my expenditure related to my consultancy service so filling in this section is straight forward. Since my income is above the limit I have said "Yes" in the section that asks if I have maintained a book of accounts and "NO" in the place where it asks if the accounts are audited (since my income is below 50 lakhs). This way I was able to file the return without any defects last two years.

However this year there seems to be a problem. As Mr. Reddy points out leaving the BS empty seems not acceptable by the IT deaprtment this year on (AY 206-2017). The problem is what do I enter in the Blance Sheet. I donot really have a captial or liabilities or debts or even an office since I offer a consultancy service (basically paid by a company as a consultant). But as indicted by Mr. Agashe I probably need to figure out some values for my captial and assests (that I use for my consultancy service like computer and mobile phone) and generate a BS and refile for the defective return.

Kamalakar Agashe (Chief Engineer Turbine) (92 Points)
Replied 03 August 2016

Originally posted by : Manoj1234
	Dear All, Thanks for the active discussion on the topic. I have to calrify that previous two years I have filed the ITR-4 with 0 entered in all colums of the Balance Sheet. This way the balance sheet was balanced. However I had filled in proper values in the Profit and Loss section. I keep a record of all my invoices and my expenditure related to my consultancy service so filling in this section is straight forward. Since my income is above the limit I have said "Yes" in the section that asks if I have maintained a book of accounts and "NO" in the place where it asks if the accounts are audited (since my income is below 50 lakhs). This way I was able to file the return without any defects last two years. However this year there seems to be a problem. As Mr. Reddy points out leaving the BS empty seems not acceptable by the IT deaprtment this year on (AY 206-2017). The problem is what do I enter in the Blance Sheet. I donot really have a captial or liabilities or debts or even an office since I offer a consultancy service (basically paid by a company as a consultant). But as indicted by Mr. Agashe I probably need to figure out some values for my captial and assests (that I use for my consultancy service like computer and mobile phone) and generate a BS and refile for the defective return.

If you have the invoices for the Computer and Mobile Phones work out the depreciation from the year of purchase and show the depreciation for FY 2015-16 in the relevant schedules and claim it.

Do you use your Car/Two_wheeler for going to office? bring that also in the same way.

Perhaps you are filing ITR-4 on your own all these years but hiring a CA helps in these things. You can claim the fee paid to CA as expense as well.

When I started as Consultant I filed couple of ITR-4 on my own but given the job to CA who suggested to claim some expenses and generated a refund claim sufficient to pay for his services.

Eswar Reddy S (CFO- at NHTF) (58213 Points)
Replied 03 August 2016

But CA's are also facing the same problem for this year...This year we had not even selected the Balance sheet for small tax payers who are merely filing ITR for refunds, only done the PL but received 139(9).

From this we should under stand that even small tax payers who are filing ITR just for refund though their income below 100000 also required to fill balance sheet details if they are opting for ITR-4

1 Like

Eswar Reddy S (CFO- at NHTF) (58213 Points)
Replied 03 August 2016

However it is applicable for 2016-17 AY only as of now.

I have filed 2 years ITR of an LIC agent on 05.06.2016.I skipped the balance sheet not even selected for 2 years..ITR for 2015-16 AY has been processed but 2016-17 AY she got 139(9)

1 Like

kuldeep jaiswal (Consultant) (39 Points)
Replied 19 September 2016

I received an intimation from IT depatment u/s 139(9) error code 31 (Tax Payer having income under the head “Profits and gains of Business or Profession” but not filled Balance Sheet and Profit and Loss Account) for AY 2016-2017.

clint income is from lic agent and tds is under 194d so what should i do

lic income is also not more then 250000 so please help me

1 Like