Defective return

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RAHUL WADHWANI (Querist)
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26 August 2017 Dear Sir,Mam If I field the I.T return of A.Y 2016-17 in 44AD head but person also have agriculture income , For showing agriculture income the ITR generate FORM-4 and department send the defective notice for full P&L A/c and Balance sheet., now what I do ..

RAHUL WADHWANI

RAHUL WADHWANI (Querist)
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Aashok Kumar Sharma online

Aashok Kumar Sharma

(Expert)
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20 July 2024 If you have filed an Income Tax Return (ITR) for Assessment Year 2016-17 under Section 44AD (presumptive taxation for businesses), but you also have agriculture income, and the Income Tax Department has issued a defective notice asking for the full Profit & Loss Account and Balance Sheet, here’s what you should do:

### Steps to Address the Defective Notice:

1. **Understand the Notice Requirements:**
- Carefully review the defective notice sent by the Income Tax Department. It typically specifies what additional information or documents are required to process your return.

2. **Prepare Full Profit & Loss Account and Balance Sheet:**
- Since you have agriculture income, which is not covered under Section 44AD, you need to prepare and submit the full Profit & Loss Account and Balance Sheet.
- Include details of your agriculture income, expenses related to agriculture, and any other income that needs to be disclosed.

3. **Respond to the Notice:**
- Prepare a response addressing the defective notice. This response should include:
- Complete Profit & Loss Account and Balance Sheet.
- Any other documents or information requested in the notice.
- Clarifications or explanations, if required, regarding the agriculture income and its treatment in the return.

4. **Submission of Response:**
- Compile all necessary documents and prepare your response.
- Submit the response to the Income Tax Department within the stipulated timeframe mentioned in the notice. It's crucial to adhere to the deadlines to avoid penalties or further consequences.

5. **Follow-Up:**
- After submitting your response, monitor the status of your case. You can check the status online through the Income Tax e-filing portal or contact the Assessing Officer (AO) assigned to your case for updates.

### Additional Tips:

- **Consultation:** If you are unsure about how to prepare the Profit & Loss Account and Balance Sheet, consider consulting with a tax professional or chartered accountant who can assist you with accurate preparation.

- **Accuracy:** Ensure all information provided is accurate and complete. Any discrepancies or incomplete information can lead to further delays or complications.

- **Keep Records:** Maintain copies of all documents submitted and correspondence with the Income Tax Department for your records.

By following these steps and providing the necessary information as per the defective notice, you can address the issue raised by the Income Tax Department effectively and ensure compliance with tax regulations.

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