Hi ,
I have income from professional (IT freelancing) and short term capital gains for Indian shares but the complete amount was less than 2.5L. I have filled my ITR3 for 44ADA as follows
in P&L Section under 53 section
(ii) For assessee carrying on Profession
a. Gross receipts 53(ii)a -211112
b. Gross profit 53(ii)b - 211112
c. Expenses 53(ii)c - 10000
d. Net profit 53(ii)d -201112
Total (53(i)d + 53(ii)d) 53 201112
and in the Balance sheet under section 6 as
6 In a case where regular books of account of business or profession are not maintained -(furnish the following information as on 31st day of March,
2018, in respect of business or profession).
a.Amount of total sundry debtors 6a 0
b.Amount of total sundry creditors 6b 0
c.Amount of total stock-in-trade 6c 0
d.Amount of the cash balance 6d 0
Now I got intimation under 139(9) with error 311 - Taxpayer having income under the head “Profits and gains of Business or Profession” but has not filled Balance
Sheet and Profit and Loss Account as required in explanation (f) under section 139(9) read with section 44AA.
with probable resolution as "The Part B of the Profit and loss account and Part B of the Balance Sheet (i.e No Account Case Section) should be entered in the corrected return without which the return filed earlier is liable to be treated as invalid."
Can you please suggest how to correct it.
One thing i understood as my mistake that I should keep. Gross profit 53(ii)b as 50% of receipts since i have less than 2.5L i kept complete amount as profit and shown 10000 under expenses
. Expenses 53(ii)c - 10000
and under BL section 6 since i dont have anything i kept all 0 . Its not correct ?
Now how should I respond to the intimation and what are the things i can correct ? in mail they have mentioned as "While correcting the above mentioned defects, If any changes are being made, leading to change of income and/or taxation under other heads of income, you should file a revised return (and not a corrected return) as per the provisions of Income Tax Act, 1961."
So whats the best way to do ? Can i submit revised IT return without any fees/charges or shall i respond to 139(9) and how should i correct the ITR for bot the cases.
Please suggest.
Thanks in advance for reading with patience and help.
CAclubindia
