Itr 3 - ay 2019-20 - case of presumptive income 44ada - itr reflecting double income.

ITR 1264 views 8 replies

Guest

Hi all, I am facing a problem while trying to fill an ITR 3 for presumptive income.

I had to choose ITR 3 instead of ITR 4 because assessee is also a director in company in PY 2018-19.

ITR3 - P&L page has column 62 for 44ADA details and column 64 for no accounts case income details.

Initially, I have filled only column 62 for 44ADA and did not fill column 64 and filed the return. we received a mail that our return 'MAY' be treated as defective as P&L/Balance sheet are not filled'.

Now, when i am trying to fill the ITR 3 again for revision of return and when I fill column 64, double income is getting carried to Schedule BP. The ITR is considering column 62 and column 64 as two different incomes. I think it is a problem in the design of ITR 3 itself (pardon me if i am wrong). Because, further in Schedule BP all columns referring to 44ADA are prefilled from column 62 here and are not editable.

How do I deal with this anamoly? I cannot simply ignore column 64 as truly accounts are not maintained by assessee. Neither can i ignore filling 44ADA details as this column lets me say why i have not maintained accounts.

I am thinking about,

a) why not show the amount in both column 62 and 64. Later, show the amount in exempt income in column 5 in Schedule BP.

b) why not show the amount in both column 62 and 64. Later, show the amount in 'other allowable deductions' in column 32 of schedule BP.

I am sure someone else also would have faced this. Please suggest me a resolution.

Thanks in advance.

Replies (8)

Dhirajlal Rambhia

SEO Sai Gr. Hosp.

210177 Points Joined July 2016

Well, trying to reply to your main post, rather then link in another post.

1. You had rightly filled details at column 62 in Schedule P&L, being declaration u/s. 44ADA.

2. Only thing is you would not have filled details in column 6 of Schedule BS, hence the defect notice.

3. Column 64 of Sch. P&L is for business or profession where books not maintained, and also not declared u/s. 44AD or ADA. So, there is no mistake/problem in the utility.

Good Luck.

Guest

Thank you you so much for reply sir. 1. However, well practically what if assessee has no creditors, debtors or stock in trade or cash. Wouldn't it be sufficient if we mention them as all zeroes (this is what i did while filing original return). 2. Does cash balance in column 6 include also bank , or is it just physical cash?? Please clarify sir and sorry for stretching it further.

Dhirajlal Rambhia

SEO Sai Gr. Hosp.

210177 Points Joined July 2016

1. All other except cash can be zero.(practically possible)

2. Generally it includes bank balances, but here just any figure of (physical) cash is sufficient.

No question of apology, when there is real doubt. Good Luck.

Guest

Thank you sir for your clarification. Will surely implement it and revise the return. ☺😊🙏.

Dhirajlal Rambhia

SEO Sai Gr. Hosp.

210177 Points Joined July 2016

Defective return can be rectified within 15 days; u/s. 139 (9) of IT act.

Guest

Ok Sir.

But we haven't received any notice of defect as such u/s. 139(9). We just received a mail that our return "MAY" be treated as defect.

Further, in the e-filing web profile, the page related to defective return notice shows 'no records'.

However, will revise it within a day or two.

Thank you sir.

Sesh V

2 Points Joined December 2019

Shri Pani, I have received same issue as defect. (i.e. 44ada filled and 'no account case' not filled. May I know how you managed to address the defect? Thanks in advance.

Vikas

abc

33 Points Joined February 2008

Shri Dhirajlal Ji.

I had similar query, hence thank you so much for the solution you gave to Shri Pani.

My only query is after filling 62 under 44ADA, should i fill the mode of receipts (electronic or cash) in column 64 and leave other details blank or should I leave column 64 completely blank?

Just want to ensure that I do not receive any defect notice because of this.

Thanks

Vikas Vyas