Clarify Defect B/D for Presumptive 44ADA Filers

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This query is : Resolved

Quick Summary

If you're filing under section 44ADA without maintaining books of account and have reported dividend income, you might see a Defect B/D warning. This warning relates to consistency between dividend income reported in Schedule OS and any adjustments in Schedule BP. If you haven't prepared a Profit & Loss account or Balance Sheet, and dividend income isn't in Schedule BP, you can usually ignore this suggestion.

Biswajit Das

Biswajit Das (Querist)
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01 September 2025 I am filing my income tax return (ITR 3) under section 44ADA and have not maintained any books of account. In my return, I have reported some dividend income in Schedule OS, but have made no adjustment for dividend income in Schedule BP, nor have I prepared Profit & Loss Account or Balance Sheet.

Despite this, I am seeing a Category of Defect B/D warning in the portal,

Error Description:
If you are required to prepare/maintain books of account and dividend income is reported in Profit & Loss Account, please ensure consistency between amount of dividend income reduced in Sch. BP and dividend income reported in Sch OS. Please ignore if not applicable.

Suggestions:
Kindly ensure that dividend income mentioned in schedule OS or schedule EI should be equal to dividend income reduced from Schedule BP.

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)
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01 September 2025 Check Schedule BP, if anywhere you notice any dividend income, clarify it with Tab no. so the exact solution can be given. If not there, then ignore the suggestion.

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)
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21 September 2025 Good luck....

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