My friend had zero gross receipts (no sales of services) in the previous year 2020-21, as there was not much of business activity. His P&L only had a few necessary revenue expenditure and depreciation expenses (as calculated in ITR-3), which resulted in a loss. He had income from other sources that are chargeable to tax at normal applicable rates. The total income is way below the basic exemption limit of income tax.
He maintains his books of accounts, and does not opt for any presumptive taxation.
He submitted his original ITR-3 on 31st December, 2021 and it went smoothly without any errors.
But on 28th January, 2022, while submitting a revised return (ITR-3), after making some adjustments that still does not make him liable to pay any taxes, the following error message showed up:
"You have claimed income less than 8% of Gross Turnover and audit information is not filled up".
He has already uploaded the revised ITR. So is this error something to worry about? or is it just a bug in the ITR submission system?
Thanks in advance for any constructive input.
CAclubindia
