No account case query

If assessee has salary of 12lakhs

Other source income of 1 lakh

And professional.inxome is 1.5 lakhs and expenses approx of 2.75 lakhs

Return selected is ITR3

When i am.filing details in no accounts case, net profit.is calculated as 0 in itr instead of -125000 loss

And as loss of business profession can be setoff against other sources income, because of abpve glitch loss of bussliness profession is not setoff against income from other sources. Because of that addl. Tax payable is showing.

Replies (6)
Quick Summary
This discussion highlights a problem when filing an ITR3 under the 'No Account Case' for a business or professional income that results in a loss. The system incorrectly calculates the net profit as zero, preventing the business loss from being set off against other income sources. This leads to an incorrect tax calculation. The thread also touches upon audit requirements for professional income and business income under specific sections.

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When you need to set off or carry forward losses you cannot file it under 'No Account Case'

is audit required?  because we are claiming less that 50% or 8% of income

For professional income below 50% yes.

For business income to be checked whether sec. 44AD(4) applicable.

Once, audit applied, both the businesses need to be audited.

professional income is only 1.5 lakh then also audit required?

Net income is loss!!!

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