Any penalty

Code: 0906,  Entertainment Industry [Others ]

Section 44AA: includes .......Film artists(anyone engaged as a professional in the film industry), who are required to maintain the books of accounts.

Well, department may give another chance to  rectify the defect. If lucky enough, better  submit some tentative figures in Schedules P&L and BS.

Even if declared INVALID, no penalty will be charged.

Sir,I am 3d artist.I do web design,logo making,3d graphics type of work from my home.

So I used 0906 as a code.

Originally posted by : Dhirajlal Rambhia
	Even if declared INVALID, no penalty will be charged.

Sir,if no penalty then what will actually happen?
IT Dept wont leave anyone like this naa?

I'm very much scared Sir.

	Sir,I am 3d artist.I do web design,logo making,3d graphics type of work from my home. So I used 0906 as a code.

Question for defective return is not what you have declared, but Non-compliance as per the rules. Otherwise also your income comes under professional income and you are required to maintain books of accounts. (AY 2016-17)

	Sir,if no penalty then what will actually happen? IT Dept wont leave anyone like this naa? I'm very much scared Sir.

Rest assured, no penalty awarded till date in any such case.

Department is kind enough to give you chance for rectification/explaination, before any such harsh action!!!

Sir,my CA responded on 17th Feb 2017.How long does it take to proceed the return?

One more question-If we do audit this year,do we need to do it next year also?

Say this year I'm in profit.But next year I'm off business and got only FD interest as Income(around 1.20Lakhs),do I still need to do audit because previous year I did it?

	Sir,my CA responded on 17th Feb 2017.How long does it take to proceed the return? One more question-If we do audit this year,do we need to do it next year also? Say this year I'm in profit.But next year I'm off business and got only FD interest as Income(around 1.20Lakhs),do I still need to do audit because previous year I did it?

Maximum a month more.

Not compulsorily. Each year is independent, and if your turn over in particular financial year exceed basic limit as specified under section 44AB, audit is required to be carried out.

These rules fall into too much grey area.

44AD,44AA and 44AB contradict each other.

In my case,though I fall in 44AD,I have to undergo audit as per 44AA which means there's no benefit of 44AD at all,right Sir?

So,the concusion is,getting books of account audited is a good choice always inspite of small profit,profit upto 3-4Lakhs.

Small business got caught under these rues very badly.

Is my assumption is right Sir?

" Is my assumption is right Sir?"

Sorry to say NO.

None of us know each and every thing of the universe. That's why there are specialists in each field. 

For you, the simple answer for next time return filling is:        File return u/s. 44ADA.             ITR 4S.           No books of accounts to be maintained.                Question of tax audit doesn't arise, if declared profit is 50% or more.           Best of luck

Thanks Sir.

Sir,I read on other forum that-

Penalty when accounting records as required are not maintained as per Section 44AA

If the tax payer fails to maintain accounting records as per the requirements of Section 44AA, a penalty may be levied under section 271A. The maximum penalty that can be charged is Rs. 25,000. However, if the tax payer can prove there is a reasonable cause for failure to maintain accounting records – such penalty may not be levied.

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That means I will be penalised for sure.

Failure to maintain books of accounts

If you fail to maintain books of accounts as prescribed, you may be charged a penalty of Rs 25,000 or in some cases where you may have international transactions and you have failed to maintain information and documents for such transactions - 2% of the value of each international transaction.

just keep recoards of csah book bank book cash vouchers debtors and creditors ledger 

it is good for u to maintain books of accounts 

ps://cleartax.in/Freelancers/books-of-account-and-audit-requirements

Then this is very bad news for me

SIR IF THE ASSESSEE REPLIED TO 139(9) AND IT HAS BEEN PROCESSED 

CAN ASSESSEE FURTHER REVISED SAME RETURN AS ITR 4S