I am a web developer, working as a FREELANCE, and all my payments are digitally transferred to my account directly.
I filled my return on ClearTax Website FY2019-2020, where I filled following details:
Nature of Business: 14001 - Software Development
Section 44 ADA Details:
Gross turnover or Gross Receipts= Rs501816/-
Total Income as per your calculation= Rs 250910/-
Now I got an email from Asst. Director of Income Tax, CPC (Bengaluru)
EMAIL NOTIFICATION
Important - Rectify the defect in your Return of Income
REASON
Taxpayer is offering Income under the head Profits and gains from Business or Profession. Hence, as per the provisions of Sec.44AA, the taxpayer is required to maintain books of accounts. As seen from the return of income filed, the taxpayer has offered regular business income in addition to Presumptive Income. However, Part A of the Profit and Loss Account and Balance Sheet are not filled, in respect of the regular business income.
PROBABLE RESOLUTION
The correction of this defect has to be made by filing a corrected return. In the corrected return of income, the Balance Sheet and Profit and Loss account have to be filled, to show the basis on which regular income from business has been computed. Please note that the books of accounts are required to be audited, if the regular business income disclosed in the return is less than the limits prescribed under the presumptive taxation provisions of the Income Tax Act. Accordingly, books of account are to be maintained and the report of audit has to be furnished.
QUERRIES:
1. What should I do with CODE 14001? I dont have Balance Sheet and Profit & Loss account
2. Can I use CODE 16019 : PROFESSION - OTHER? What Necessary Changes I have to make and Follow the Process
3. If I cannot use NOB CODE 16019. Then there is an Option on ClearTax Website: PRESUMPTIVE INCOME ADD FINANCIAL PARTICULARS:
Financial Particulars of the Business (only for Presumptive Income)
Partners Own Capital: BLANK
Secured Loans: BLANK
Unsecured Loans: BLANK
Advances: BLANK
Amount of total Sundry Creditors(Amount of Account Payables): 0
Other Liabilities: BLANK
Total Liabilities: 0
Fixed Assets: 0
Amount of total Stock-in-trade (Value of your stock like raw material, finished goods, etc.): 0
Amount of total Sundry Debtors (Amount of Account Receivables): 0
Balance With Banks: BLANK
Amount of the cash balance(Amount of cash in hand): 0
Loans And Advances: BLANK
Other Assets: BLANK
Total Assets: 0
KINDLY HELP ME TO FILL THE ABOVE INFO AND SHARE THE RESOLUTION OF MY ITR PLS
Thanks & Regards
Rohit
CAclubindia
