Taxable Renumeration received from a partnership firm

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This discussion clarifies the correct reporting of remuneration received from a partnership firm for tax purposes. It addresses a common confusion regarding where to declare this income in both the Form 3CB-3CD and the Income Tax Return (ITR). The advice given confirms that while the remuneration was correctly declared under Clause 16(a) of the audit report (Form 3CB-3CD), the IT return should reflect this under Point 5(a) of Part OI. If it was incorrectly reported elsewhere, filing a revised ITR is recommended to align with the correct disclosure.

Sandeep Kumar P

Sandeep Kumar P (Querist)

16 November 2022 I have received an intimation U/s 143(1)(a) for the proposed adjustments as below :

There is inconsistency in amount mentioned in return at Sl. No. 5(a) of Part A OI "The items falling within the scope of section " as compared to amount mentioned in clause 16 (a) of audit report

Facts of the adjustment:
In Form 3CB-3CD i have declared the renumeration recevied from a partnership firm Under Clause 16(a) -The items falling within the scope of section 28;

However, in IT return have disclosed the same under point No.24 of schedule BP and not in Point 5(a) of Part OI-The items falling within the scope of section

Please advise the correct head of reporting the aforsaid income in Form 3CB-3CD and in IT return.

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)

17 November 2022 Reported in 3CB- 3CD is okay.
In ITR reporting in Point 5(a) of Part OI-The items falling within the scope of section is the right one.

Sandeep Kumar P

Sandeep Kumar P (Querist)

18 November 2022 Thank you Sir. How to reply for the afforsaid proposed adjustment in the intimation order received?

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)

18 November 2022 Reply as disclosed the same under point No.24 of schedule BP.
File revised ITR.

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