ITR-3 FY 2018-19 Error 310

ITR 362 views 3 replies

Varun Madan

3 Points Joined July 2018

I am working as a freelance/work from home and the company deducted the TDS on my income. During FY2018-19, I had gross income Rs. 558444 and spent 144000 on various expenditures i.e. mobile bill, internet bills and payment towards job work given to various peoples. After that my net profit was 414444. I had filed ITR-3 under income business and profession and chose option "IF REGULAR BOOKS OF ACCOUNT OF BUSINESS OR PROFESSION ARE NOT MAINTAINED, furnish the following information for previous year 2018-19 in respect of business or profession"

Now my ITR is marked as Defective with error 310 and reason "Taxpayer having income under the head “Profits and gains of Business or Profession” but has not filled Balance Sheet and Profit and Loss Account as required in explanation (d) under section139(9) read with section 44AA"

Also advised probable suggestion "The Part A of the Profit and loss account and Part A of the Balance Sheet should be entered in the corrected return without which the return filed earlier is liable to be treated as invalid."

My question is that when I did not maintain any accounts during the year and ITR form has an option "No account case" Then why my ITR is marked as defective? I am following same practice since 3 years and this is the first year when It get defective.

Has any rules changed/updated for the same? Is there any income limit when we will have to choose only account case rather than no account case.

Kindly help.

Regards

Replies (3)

Kapadia Pravin

17264 Points Joined December 2018

Books of Account under 44AA are required to be maintained.

You can not simply choose no accounts case.

For this You should declare your income under 44AD or 44ADA (if specified Profession) - presumptive taxation.

For this you have to use ITR4 Sugam Return.

You also can use ITR3 but have to use item No 61 or 62 of P&L schedule.

pl check ITR3 and inform how have you filled up schedule P&L .

Varun Madan

3 Points Joined July 2018

I did choose "No" for item "Are you liable to maintain accounts as per section 44AA?" and Are you liable for audit under section 44AB?.

I filled ITR-3 and item no. 64 "IF REGULAR BOOKS OF ACCOUNT OF BUSINESS OR PROFESSION ARE NOT MAINTAINED, furnish the following information for previous year 2018-19 in respect of business or profession-" under P&L schedule and item 6 "In a case where regular books of account of business or profession are not maintained -(furnish the following information as on 31st day of March, 2019, in respect of business or profession)." under the balance sheet schedule.

As mentioned, the income has earned from freelance work which consist simply data entry work.

Is it consider under Professional and liable to filled under item 61 or 62?

Kapadia Pravin

17264 Points Joined December 2018

You have to use item 62 .
Do not fill anything in item 64
Fill item 6 of BS schedule
File ITR 3

Better you file ITR4 Sugam which is applicable ITR to you. Okkkaaay.