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?
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.