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NO ACCOUNT CASE UNDER ITR 3

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hareesh p

27 Points Posted on 06 July 2023

Hi sir,

Iam facing an issue when fling under no account case in ITR 3. Under validation error it is saying that "income is more than 2.5 lakhs but BS & P&l is not entered". i have provided balance sheet details also under no account case.

How can i change that error? When i give yes for 44AD in audit section and then file no account case then no error comes up.

Replies (2)

Quick Summary

This discussion addresses a common validation error when filing an ITR 3 under a 'no account case'. The error message "income is more than 2.5 lakhs but BS & P&L is not entered" appears despite the user providing balance sheet details. The user found that selecting 'Yes' for 44AD in the audit section resolves the error, but questions its applicability. Advice is given to check income and selected codes against Section 44AA, Clause (ii), which mandates maintaining books of accounts if business income exceeds ₹2.5 lakhs.

Akshat Varaiya

158 Points Posted on 06 July 2023

As per section 44AA, clause (ii), if his income from business or profession exceeds two lakh fifty thousand rupees, he shall be liable to maintain books of accounts.