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Is Gross Turnover same as Sales/ Gross receipts in Trading Account(ITR3)?

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Nilesh

Business

24 Points Posted on 17 September 2021

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?

Attached File : 3502383 20210917143016 audit 1.jpg downloaded: 100 times

Replies (3)

Quick Summary

This discussion clarifies the distinction between Gross Turnover and Sales/Gross Receipts within an ITR3 Trading Account for sole proprietorships. The user received a 'defective return' notice for claiming income less than 8% of Gross Turnover, despite showing profits above 8% of sales. The core issue seems to be how Gross Turnover is calculated and potentially a misunderstanding of whether the 8% threshold applies to gross or net profit.

Dhirajlal Rambhia

SEO Sai Gr. Hosp.

121534 Points Posted on 17 September 2021

It seems, you have declared the gross profit more than 8%; (in trading account) and not the net profit as derived from the P&L acc. !!

Nilesh

Business

24 Points Posted on 19 September 2021

Thanks for the reply,both profit values are the same......If ITR3 is filed with the TAXCODE 16019 (Other professional services n.e.c.) does one still have to declare profit above 50% (even if the books are disclosed)?