Itr-3 error relating to slump sale
LTCG relating to slump sale has been declared for which form 3cea was already filed. while uploading returns, the validation throws error stating 'taxpayer cannot offer income chargeable at special rates in part B-TI without filling the schedules' although all the schedules are already filled. could someone help me out?
Replies (1)
| Slump sale errors in ITR-3 are common due to specific reporting requirements under Section 50B. Here is how to resolve: 1. Section 50B Compliance: Slump sale (transfer of a business undertaking as a going concern for a lump sum consideration without individual asset values) must be reported under Schedule CG (Capital Gains) in ITR-3. The net worth of the undertaking is treated as cost of acquisition. 2. Form 3CEA Mandatory: Before filing ITR-3, ensure Form 3CEA (Report of a Chartered Accountant in case of slump sale u/s 50B(3)) is filed by the CA from CA's IT portal login. This form must be accepted by the assessee. ITR-3 validation will throw an error if Form 3CEA is not filed/accepted. 3. Common Errors in ITR-3: - Schedule CG: Fill 'Slump Sale' section correctly — enter full consideration received, net worth of undertaking (as per Form 3CEA), and resultant LTCG/STCG. - If the undertaking was held for more than 36 months: LTCG applicable (taxed at applicable slab for companies/firms, or 20% for individuals with indexation not applicable for slump sale). - Net Worth = Book value of assets minus liabilities of the undertaking (as per last audited balance sheet). 4. Offline Utility: If using offline JSON utility, ensure you have the latest version — slump sale schedule was updated in some AY utilities. Download fresh from incometax.gov.in. 5. If Error Persists: File a grievance on IT portal citing the specific error code and slump sale schedule issue. |
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