Income Tax: Rectification & Revised Returns Guide

This query is : Resolved

Quick Summary

This discussion addresses an income tax query regarding ITR-6 for AY 2019-20. The user incorrectly included bank interest in the Profit & Loss account, leading to a business loss. The CPC disallowed this loss. The advice given is that rectification under section 154 is not suitable for this error; instead, a revised return should be filed before March 31st, correctly showing interest income under 'income from other sources' separately from the P&L account.

R.KANDASUBRAMANIAN

R.KANDASUBRAMANIAN (Querist)
Follow

16 March 2020 Please refer ITR 6 for A.Y. 2019-20 net profit included income from interest In BP part we have shown interest income as income considered under other heads and accounted the same as income from other sources resulting BP has shown business loss and bank interest is shown under income from other sources. Cpc disallowed this business loss stating PL account not showing loss. How to file rectification under section 154 and how to explain this details while filing

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
Follow

16 March 2020 File revised return before 31st March.

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
Follow

16 March 2020 154 rectification can't be made for such mistake.

Eswar Reddy S

Eswar Reddy S (Expert)
Follow

16 March 2020 Remove the Interest income in ITR data entry and revise the ITR.

R.KANDASUBRAMANIAN

R.KANDASUBRAMANIAN (Querist)
Follow

16 March 2020 Sir revised return to be filed as such interest income from fd not to be shown in PL account and to be shown separately in income from other sources. So that PL account shows loss. Is it correct. Please guide and reply

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
Follow

16 March 2020 Yes you are right file revised return as proposed above.

R.KANDASUBRAMANIAN

R.KANDASUBRAMANIAN (Querist)
Follow

17 March 2020 Seetharaman sir thanks for your guidance with best wishes

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
Follow

17 March 2020 Welcome..................

You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now

Join CAclubindia WhatsApp Finance Community & stay updated with the latest TAX news, compliance alerts and important updates all in one place!