Filing itr-3 ay 2018-19 for professional

Vivek Ram

Sarath Chandra

Vivek Ram

Sarath Chandra

M SURESHKUMAR

Vivek Ram

Sarath Chandra

Amit Chaudhary

CA Arun Tiwari

Chhalani and Associates

Sarath Chandra

ITR 674 views 10 replies

5 Points Joined September 2018

Dear Sir, I am in profession of teaching and self-employed. I take private coaching. My Gross receipt is around 9 lakh and I have shown 50% of that as my gross profit. Also I have sold a flat and earned a capital loss. So i have filled ITR 3.

Now I got following mail from income tax department:

S.No.	Defect	Impact	Suggested Resolution
1	Income from "Profits and Gains from Business or Profession" is greater than 1.2 lakhs but particulars as in "Balance sheet/Profit &. Loss Account" are not filled	Income Tax Return may be treated as defective if particulars in "Balance sheet/Profit &. Loss Account" are not filled	Please fill Balance sheet/Profit &. Loss Account

I was not mainitng any book of account. I have filled "Profit and Loss" sheet ( point 53(ii)) with Gross receipt of Rs 9 lakh and Gross profit of 50% of that. Also I have filled PartA-BS (point 6) with all entry zero.

Please suggest me what should be done now.

Replies (10)

CA Final Student

566 Points Joined August 2015

Sundry creditors, sundry debtors, cash in hand are to be filled in BS details and expenses have to be filed in P&L details. Cash in hand cannot be left blank.

5 Points Joined September 2018

Also I have mentiond Balance Sheet anf P&L statement as under.. I have got error with this entry made.

Gross receipts	53(ii)a	960400
Gross profit	53(ii)b	480200
Expenses	53(ii)c
Net profit	53(ii)d	480200
Total (53(i)d + 53(ii)d)	53	480200

I am not dealing with any credor/debtor. Also I was not having any cash as on MArch 31 from my profession. So I have filled all entry with zero.

What entry should go in Expenses? As already I have shown gross proft @ 50% of Gross receipt. And I am not having any expense further.

CA Final Student

566 Points Joined August 2015

You should have filed ITR under presumptive basis. In presumptive basis, the income from profession shall not be less than 50% of the total receipts.

CHARTERED ACCOUNTANT

2 Points Joined September 2018

sir what is difference between the professional and specified professional

5 Points Joined September 2018

As my income from profession is exactally equal to 50% of the total receipts, Am I correct here? or do I have to change it.

Further, In balance sheet I have marked all entry as Zero as explaing above. Am I writer here ? Or some changes need to be done.

CA Final Student

566 Points Joined August 2015

As per section 44AA(2), if the assessee is other than individual/HUF and has income from business or profession more than 1.2 lakh, such assessee must statutorily maintain books of accounts.
Department contention is that since the income is more than 1.2 lakh, you are required to maintain books and cannot leave the fields blank.

7 Points Joined June 2019

Dear Sarath, i read that doctors, teachers and other Professionals who are filling their return of income under the presumptive income scheme like under section 44AD are not required to compulsorily maintain books of account u/s 44AA. So if Vivek Ram is filing under No Accounts Case of ITR3 and declaring 50% of his Gross Receipts as his Gross Profit for Presumptive Income, even though it is more than 1.2 lakhs, will he still need to fill other details of Balance Sheet and P&L sheet? My case is similar and I filled exactly what Vivek Ram has explained, but I still got notice under sec 139(9) mentioning that I need to fill Part B of P&L account and Part B of Balance Sheet (i.e. No Accounts Case). But I am confused as I already filled in those sections. Could it be because I have filled all values as zero in Balance Sheet No Accounts Section (Sundry Creditors, Sundry Debtors, Stock in Trade, Cash Balance were all filled zero). Please help. Thanks.

Partner

6665 Points Joined February 2018

Either You should have filed ITR under presumptive basis. In the presumptive basis, the income from profession shall not be less than 50% of the total receipts or you can file ITR4 for your Income Tax Return.for further information or query you can contact 8080809061 and visit on aktassociates.com.

CA - www.cachhalani.com

142 Points Joined October 2014

Pls keep in mind, if you are opting under presumptive basis, you cannot opt out for next 5 years and you will have to show a minimum profit of 50% for next 5 years. Advantage - you need not maintain books of accounts.

Else you can show actual profit, but you need to maintain books of accounts as per section 44AB.

Amount of total sundry debtors

Amount of total sundry creditors

Amount of total stock-in-trade

Amount of the cash balance

CA Final Student

566 Points Joined August 2015

Dear Amit Chaudhary,

You should either file ITR-4 or ITR-3. If you are engaged in profession and willing to declare not less than 50% of your gross receipts as profit, then you have to file ITR-4 (presumptive taxation). If you do so, then you need not maintain any books of accounts.

But, if you file ITR-3, all the details have to be filled in BS and P&L. In 'No Accounts case', you should ensure that all the necessary fields are not left blank. Remember, cash in hand cannot be left blank.