One of my friend has received a rectification notice from Income Tax Department fo FY 18-19 return. He had received Rs.567000/- as professional income from a company which deducted 10% TDS and deposited money in his account. To earn this income he had paid around 3 lacs to some other professionals, after paying the amount actual income of his comes to 2 Lac Rs. In the return we have shown 2 lac as his income and TDS 56700/-. Here Income Tax Department says that the total income to be shown is Rs. 567000/-. How shall i make the Income Tax Authorities understand that only Rs. 2 Lac is his taxable income. Please help me in this. I need solution for this.
Is it ok if i show 567000 as income and expenses amounting to 368000 in the revised return. Balance Rs. 198980 i will offer for Income Tax, as it was offered earlier the only difference will now be the return filed U/s 44ADA as suggested by your goodself. Is it ok if the refund remains unchanged.