A taxpayer using ITR 3 for AY 2020-21 received a notice under Section 139(9) for a defective return, despite filling in Item 64 of the Profit and Loss account and Item 6 of the Balance Sheet, as they hadn't maintained regular books of account. The advice given is that if books of account are not maintained, the 'no accounts case' option should be selected, leaving the P&L and Balance Sheet sections blank. If books are applicable, turnover and expenses need to be filled in the P&L, and relevant balance sheet details provided. For turnovers up to 50 lakhs, ITR 4 and opting for Section 44AD is suggested.
09 May 2021
I have filled ITR 3 for above assessment year in which I have filled Item 64 of Part A of Profit and loss account and Item 6 of Balance Sheet as I have not maintained regular books of account , yet I have received notice for defective return stating that I have not filled PART A of PNL and Bsheet. Whether it is correct notice ?? should I have to filled whole balance sheet and profit and loss account ?
09 May 2021
It's correct notice. You have to fill turnover and expenses in p and l and balance sheet details as applicable to you if maintenance of books of accounts applicable to you. In case maintenance of books of accounts not applicable to you, select the option and leave p and l and balance sheet blank.