Notice u/s 139(9)of income and error code 86

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This query is : Resolved

Ganesh (Querist)
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26 October 2017 Error description

As per Section 44AD(6) of the Income Tax Act, 1961, the
provisions of Sec.44AD are not applicable to – (1) persons
carrying on professions that are referred to in
Sec.44AA(1), (2) persons earning income in the nature of
commission or brokerage, and (3) persons carrying on any
agency business.As seen from the return of income filed,
the nature of business code mentioned is 00711 Software
development agencies, which falls in the categories
mentioned above. Hence, the provisions of Sec.44AD are
not applicable, in your case.

I can not audit profit and loss because my turnover below 10 lakh.
Actually I'm freelancer and work online and get some money.
Let me know how to respond income tax notice. or need to change nature of business selected?
I hope to get some advice here...

Thank you

RAJA P M

RAJA P M (Expert)
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26 October 2017 Yes...
You Can't opt u/s 44AD... So, the Intimation send by ITD...

Ganesh

Ganesh (Querist)
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26 October 2017 I'm freelancer and let me know which nature of business come under my work.
Please let me know. Please explain in brief.

RAJA P M

RAJA P M (Expert)
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26 October 2017 u/s 44 AD is only to Business not applicable to profession...

Also you can file it U/s 44 ADA....

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Ganesh

Ganesh (Querist)
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26 October 2017 Thank you Raja Sir!!
I have another queries about this.

Which ITR form used ?
I means ITR 4 or 3.
My annual turnover are not more than 10 lakh and I have sole proprietor.
Its need to audit profit and loss. ?

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RAJA P M

RAJA P M (Expert)
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26 October 2017 Please mention the AY...!!!

Ganesh

Ganesh (Querist)
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26 October 2017 Assessment Year 2017-18

RAJA P M

RAJA P M (Expert)
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26 October 2017 No need Audit...
You ll be file Regular return the you can use ITR 3...
In case you ll be going Presumptive Scheme you can use ITR 4 (u/s 44ADA - 50%)

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Ganesh

Ganesh (Querist)
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26 October 2017 Just last question
when audit requires I means turnover above 10 lakh or 20 lakh?

RAJA P M

RAJA P M (Expert)
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26 October 2017 If profession above 50 Lakhs

Ganesh

Ganesh (Querist)
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26 October 2017 Thank you RAJA P M

RAJA P M

RAJA P M (Expert)
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