Income tax return showing error

343 views 2 replies

Dear SIr

One of my client has following income.

Salary

House property

Capital gain

Profession income (to be shown in 44ADA)

Other sources.

I enter the professional reciept for 44ADA and declaring income @ 50 %.

As per provisions i dont need to fill Balance sheet and profit loss. Because i am declaring my income U/s 44ADA i.e. presumptive income.

But when we file ITR , the income tax ITR 3 (because income consists of other head also) utility shows error and asks us to fill Balance sheet and Profit loss.

My client is providing accounting (Not chartered accountant service) services to clients. and its not covered under sub section 1 of section 44AA

Do i need to fill balance sheet and profit loss a/c

Please help.

Thanks

Replies (2)

Sec 44AA(2) (i)

Every person carrying on business or profession ( who is not covered in subsection 1) shall

if his income from business or profession exceeds Rs 1,20,000/-  OR

if his sale turnover or gross receipts exceeds Rs 10,00,000/- 

in any one of the three years immediately preceeding the previous year ( Current year if newly set up)

Keep and maintain books of accounts.

so if any one of these conditions fulfilied then P&L and B/s must be filled compulsorily.

 

Thx Supriya for reply.

 

Then what is the use of Section 44AD or 44ADA which clearly says that declare 8 % or 50 % profit and no need to prepare Books


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