ITR validation error - Balance sheet is not filled

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This query is : Resolved

Quick Summary

The validation error occurs because speculative share trading is treated as business income, not professional income under Section 44ADA. Since speculative business cannot be reported under presumptive taxation, the balance sheet and related business details must be completed correctly.

Suraj

Suraj (Querist)

05 July 2026 Dear Sir / Madam,

I am getting this validation error on IT website:
Error description -
Income from Profits & Gains from Business or Profession is greater than 2.5 lakhs but Balance sheet is not filled.

Suggestion -
Kindly fill up the details in the Balance sheet since your income from Profits & Gains from Business & Profession exceeds the Basic exemption limit.

This assessee is engaged in the profession of business & management consultancy. His profit is declared u/s 44ADA @51%.
In ITR, Liable to maintain accounts as per Section 44AA? selected "No"
Engaged in Specified profession u/s 44AA(1)? selected "Yes"
Under financial particulars, under debtors, his March 2026 fees receivable is shown and cash balance is shown,

But I am still getting the above validation error while uploading the return. What is to be done? Should I ignore & proceed to file return?

Aashok Kumar Sharma online

Aashok Kumar Sharma

(Expert)

05 July 2026 The validation error is likely occurring because some fields in the "Financial Particulars" or "No Account Case" Balance Sheet section are left blank. Do not ignore the error. To fix it, ensure you enter "0" (zero) in the Sundry Creditors and Stock-in-Trade fields instead of leaving them empty. Additionally, verify that your income is entered strictly under the Section 44ADA block in Schedule BP and that you are using the correct ITR form (ITR-4 if eligible).

Suraj

Suraj (Querist)

06 July 2026 I am still getting the same error. I checked all the things. Don't know what is causing this error..... it is shown u/s 44ADA, selected NO to liable to maintain accounts as per sec 44AA, selected YES to Engaged in Specified profession u/s 44AA(1), shown figures against sundry debtors and cash and zero against Sundry creditors & stock in trade. Selected Taxable u/s 44ADA under the nature of business.
The assessee also has income from speculation trading in shares, so selected speculation trading as Other than 44ADA profession.
Am I left with anything to select or show?

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)

07 July 2026 Speculative trading is a business and not profession. The business cannot be declared under any presumptive assessment. Hence the defect.

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