One of my client received a demand because the "income form house property" was shown under clause 16D of 3CB-3CD form. But while computing it was shown in under head Income From House Property. But assessing officer have included the same in the PGBP income. To not repeat the same what would be the correct method for the above problem?
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Quick Summary
This discussion addresses a common issue where 'income from house property' is incorrectly reported under clause 16D of the Form 3CB-3CD tax audit report, leading to its inclusion in Profit and Gains from Business or Profession (PGBP) income by the assessing officer. Participants are seeking the correct method to report this income to prevent such discrepancies and are sharing solutions, including revising returns or filing rectification requests, as direct revision of the audit report for AY 2021-22 is generally not permitted.
3CD (audit report form), clause 16(d) asks about the amount of any other item of income not credited to the profit and loss account. In most of the cases, people don't credit income from sources other than the source of business / profession to the profit and loss account and credit the same to the capital account.