I had started an Individual Proprietorship Business last year Fy20-21and have shown profits more than 8% of Sales/ Gross receipts of business (net of returns and refunds and duty or tax,) in Trading Account (ITR-3).
However,after complete verification of the online ITR-3 return ,I am provided a Defective Return Prompt(refer above images) -
"You claimed income less than 8% of the Gross Turnover and Audit information is not filled."
How is Gross Turnover Computed in ITR3 and even when profits shown are more than 8% of gross sales then why is the defective notice prompt being shown?
CAclubindia
