15 January 2018
The assessment Year 2017-18 Filed ITR form type ITR-4 Source of Income- LIC Agent
Error Code 86
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 00301 General Commission Agents, which falls in the categories mentioned above. Hence, the provisions of Sec.44AD are not applicable, in your case.
Probable resolution- As the provisions of Section 44AD are not applicable, in your case, the claim of computing profits and gains of business on presumptive basis, under this special provision is not allowable. Hence, the above defect has to be corrected by way of computing the profits and gains of business under the normal provisions and not under Sec.44AD and offering the same.
1) Please let me know what am I missing. 2) How to filed under the normal provisions?
16 January 2018
The provisions of section 44AD are applicable to such resident assesses who is an Individual, Hindu Undivided Family and Partnership Firm but not Limited Liability Partnership Firm. The presumptive taxation scheme under these provisions can be opted for by the eligible assessees who is engaged in any business (except the business of plying, hiring or leasing goods carriages referred to in section 44AE), whose turnover or gross receipts from such business do not exceed the limit of audit prescribed under section 44AB. The scheme of section 44AD is designed to give relief to small taxpayers engaged in any business, except the following businesses:
> Business of plying, hiring or leasing of goods carriages referred to in section 44AE.
> A person who is carrying on any agency business.
> A person who is earning income in the nature of commission or brokerage
16 January 2018
I am a LIC Agent. I don't have any other source of Income. My Gross Turnover or Gross Receipts Rs. 94550 & earlier during e-Filing I putted Presumptive income under section 44AD Rs. 93500. So, now how can I correct the defect? How can I compute the profits and gains of business under the normal provisions?
CAclubindia
