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Error code 1021

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Hemant

Accountant

114 Points Posted on 26 September 2021

Dear Experts, I filed itr 3 on September 2020. Tommorrow defective return notice received, error descripttion--TAXPAYER is offering income under the head profit and gain from business or profession. Hence as per the provisions of Sec. 44AA, the Taxpayer is required to maintain the books of accounts. However as seen from the return not filled up part A of the P&L and Balance sheet. Further income from business has not been offered under presumptive taxation. Please suggest me, can I revised ITR and fill ITR 4 or fill itr 3 u/s 139(9). Because not maintained books of accounts. Gross receipt 601152/- Net profit 284652/- other source 18139/- total income 302791/-

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Quick Summary

A taxpayer filed ITR 3 but received a defective return notice (Error Code 1021) because they didn't maintain books of accounts as required by Section 44AA. The notice states that since income was offered under 'profit and gain from business or profession' and not under presumptive taxation, maintaining books of accounts is mandatory. The taxpayer is seeking advice on whether to revise their ITR to ITR 4 or file a revised ITR 3 under Section 139(9) due to not maintaining these books.