Type of income tax return
This query is : Resolved
19 February 2018
one of my client has income from an NGO as an employee by imparting professional services which income tax return should be filed ITR1 OR ITR3?
19 February 2018
BUT HIS IS NOT MAINTAINING BOOKS OF ACCOUNT HIS ITR GOT DEFECTIVE IN LACK OF BALANCE SHEET AND P/L
19 February 2018
if he is a professional, then he can opt for 44ADA benefit and he will therefore will not be required to maintain books
19 February 2018
HE IS WORKING AS Professional EMPLOYEE OF NGO. ITR1 OR 3 WILL BE APPLICABLE.?
19 February 2018
Kindly note:
1. Please ensure no other information is changed apart from those errors listed below in Part- A, incase of any other changes in data,
the return of income filed by you is liable to be treated as an invalid return.
DOES THIS CLAUSE STOP US TO CHANGE THE TYPE OF ITR?
1. Please ensure no other information is changed apart from those errors listed below in Part- A, incase of any other changes in data,
the return of income filed by you is liable to be treated as an invalid return.
DOES THIS CLAUSE STOP US TO CHANGE THE TYPE OF ITR?
02 August 2025
Here’s the clarity on your client’s situation:
* **If your client is employed by the NGO** and receives **salary income only**, then the correct form to file is **ITR-1 (Sahaj)**, provided his income is from salary/pension and other sources, and total income is below ₹50 lakh.
* **If your client receives professional fees (not salary)** or income from business or profession, then **ITR-3** is required.
* Now, you mention **“professional employee”**—if the income is salary for employment (even if professional services), it’s treated as salary, so **ITR-1** is fine.
* **Maintenance of books and filing balance sheet/P\&L:**
For salary income, no need to file balance sheet or profit & loss account. If your client was filing ITR-3 due to professional income, but actually it is salary, then filing ITR-1 is correct.
* Regarding the clause you quoted from the defective return notice:
It means **you should not make any changes except to correct the listed defects**. Changing the type of ITR is considered a substantial change and may invalidate the correction. So, if the originally filed ITR was incorrect, you should file a **fresh return (before due date or a revised return if allowed)** in the correct ITR form, rather than just rectifying the defective one.
---
**Summary:**
* Income as employee (salary) → ITR-1.
* Income as professional fees → ITR-3.
* For defective return, do corrections only for listed defects; change in ITR type means file a fresh/revised return.
If your client’s income is salary, ITR-1 is appropriate; if professional fees, ITR-3 is needed.
---
Need help drafting a reply or how to file a revised return?
* **If your client is employed by the NGO** and receives **salary income only**, then the correct form to file is **ITR-1 (Sahaj)**, provided his income is from salary/pension and other sources, and total income is below ₹50 lakh.
* **If your client receives professional fees (not salary)** or income from business or profession, then **ITR-3** is required.
* Now, you mention **“professional employee”**—if the income is salary for employment (even if professional services), it’s treated as salary, so **ITR-1** is fine.
* **Maintenance of books and filing balance sheet/P\&L:**
For salary income, no need to file balance sheet or profit & loss account. If your client was filing ITR-3 due to professional income, but actually it is salary, then filing ITR-1 is correct.
* Regarding the clause you quoted from the defective return notice:
It means **you should not make any changes except to correct the listed defects**. Changing the type of ITR is considered a substantial change and may invalidate the correction. So, if the originally filed ITR was incorrect, you should file a **fresh return (before due date or a revised return if allowed)** in the correct ITR form, rather than just rectifying the defective one.
---
**Summary:**
* Income as employee (salary) → ITR-1.
* Income as professional fees → ITR-3.
* For defective return, do corrections only for listed defects; change in ITR type means file a fresh/revised return.
If your client’s income is salary, ITR-1 is appropriate; if professional fees, ITR-3 is needed.
---
Need help drafting a reply or how to file a revised return?
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