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Intimation under section 143(1)(a)

Rakesh Gupta (Manager) (134 Points)

24 March 2018

My wife filed her ITR for AY 2017-18 in time with proper declaration under different heads thru her CA.

Two days back, received an E-Proceeding Intimatioon under Section 143(1)(a) in which it is mentioned that Income declaraed as per Return is ZERO whereas in the uploaded XML, and resultant PDFs and Acknowledgement, it is clearly shown the total Income from Business and other sources.

Also tried reaching CPC at 18001034455 and 080-46605200 but getting message that numbers can't be reached due to technical issues.

Can I get a proper guidance on how to proceed.

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11 Replies

ajeet singh (1392 Points)
Replied 24 March 2018

143(1)a intimation matching with return filed by u or there any difference ??

Rakesh Gupta (Manager) (134 Points)
Replied 26 March 2018

It is showing Aerror in Schedule BP. in 26AS statements clients have mentioned Items under Section 194J under which Software license supplies comes.

When called up CPC they told that variance is due to mismatch of figures shown in Income from other sources with 26AS.

As my wife is a business woman hence her CA declared Net Profit as Income from Busienss & Profession and Interest income from Bank under Income from other sources which is 100% correct. But Income Tax department is considering all the amount in 26As as Income from other sources.

what is the resolution for such issue ?

Rakesh Gupta (Manager) (134 Points)
Replied 28 March 2018

Received another Intimation u/s 143(1)(a)(vi) whicjh gives clarity on the variance.

As this is already taken into consideration in total Turnover and while calculating Profits from Business & Prof. hence please guide how to deal with this and in which part of E-Proceeding it has to be answered.

CA Naveen Chand (Chartered Accountant) (12729 Points)
Replied 28 March 2018

INCOME IN 26 AS IS SHOWN BUT THE SAME IS NOT REFLECTED IN ITR

REVISE ITR ASAP AND SHOW INCOME

Rakesh Gupta (Manager) (134 Points)
Replied 28 March 2018

Naveen

But this has already been taken into consideration while computing Income/Profits from Business & profession and shown in E2 section as per Section 44AD.

Attaching the ITR Copy for your reference.

Please guide.

Attached File : 1582892 20180328134742 2018 01 27 17 10 20 743 axcpg1283e 2017 .pdf downloaded: 112 times

CA Naveen Chand (Chartered Accountant) (12729 Points)
Replied 28 March 2018

ATTACHED 26AS ALSO

Rakesh Gupta (Manager) (134 Points)
Replied 28 March 2018

Attached 26AS.

Attached File : 1582892 20180328143545 axcpg1283e 2017.pdf downloaded: 128 times

amay (Software Engineer) (36 Points)
Replied 28 March 2018

Hi Rakesh, I also received exactly same response on my ITR for proprietory business income. Please do let me know what resolution you provided. Could you ask the CA who filed the ITR?

CA Naveen Chand (Chartered Accountant) (12729 Points)
Replied 28 March 2018

I GOT IT !! WHAT ACTUALLY WRONG WITH THIS

44AD IS FOR BUSINESS AND U SHOW THE INCOME IN BUSINESS INSTEAD OF PROFESSIONAL 44ADA IN ITR

AND TDS IS DEDUCTED U/S 194J PROFESSIONAL INCOME AND U SHOW THE INCOME IN BUSINESS

Rahul Prajapati (Student) (2282 Points)
Replied 28 March 2018

I HAVE ALSO ENCOUNTER THE SAME ERROR WITH ONE OF MY CLIENT.

WHEN I READ IT, THEN I COME TO KNOW THAT 194(J) IS FOR PROFESSIONAL FEE AND WE HAVE ENTERED THE GROSS RECEIPT IN 44(AD) TURNOVER

BUT IN ACTUALLY IT NEED TO ENER IN 44ADA @ 50% OF GROSS RECEIPT.

THATS WHY IT IS SHOWING NIL INCOME AS PER INCOME TAX RETURN FILED

Rakesh Gupta (Manager) (134 Points)
Replied 28 March 2018

Naveen

We Import Software Licenses from Overseas and sell those licenses to Indian entities. Hence since 2009 when Software licenses were made as a Service we are filing our return as Income from Business & Professional which is correct.

As the same time when we sell it to our customers, they sometime deduct TDS under section 194J because there is no separate section for Software License.

Under income tax act, software licenses are treated as Professional & Technical Services.

Till AY2016-17 all our returns were processed as we used to file, we never received such intimation but only this year we received.

Please guide what is the resolution ?