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Presumptive tax for cosmetology consultant - 44ADA

ITR Filing 685 views 3 replies

Hi,

I am working as a consultant and I am getting salary after deduction under 194j. For this, I used ITR 4 to fill the IT return but got an email from CPC that my return is defective as I did not add any information in sections 44AD, 44ADA and 44AE. My total refund/TDS for the year(2019-2020) was Rs. 32820. So please let me know do I need to fill section 44ADA for presumptive tax? If yes, what do I need to enter in E3 (Gross receipts) and E4? Is ITR4 is ok in my case or other form is required?

Please find below the errors mentioned in email:

1 85 The assessee has not filled, in the return all the rows, of
the financial particulars of the business as at the end of
the previous year. Hence, as per clause (f) of the
explanation under section 139(9), the return filed is
regarded as defective.
The assessee has to fill all the rows, of the financial
particulars of the business as at the end of the previous
year, in “Schedule BP”.
2 97 As per rule 12 (1)(ca), a person deriving income under the
head “profits or gains from business /profession” and
such income computed in accordance with special
provisions of section 44AD or 44AE or 44ADA, is required
to furnished return in ITR-4. The Return of Income is filed
using ITR 4, however, income from business or profession
under section 44AD or 44AE or 44ADA is not disclosed
ITR 4 is not applicable to your case since income from
business or profession under section 44AD or 44AE or
44ADA is not disclosed. If you do not have any income from
business or profession under section 44AD, 44AE or
44ADA, then kindly file corrected Return using ITR 2 (for
individuals and H.U.F) or ITR 5 (In case of Firm)

 

Regards,

Tarun Sharma

Replies (3)
File Revised return ITR and fill up all details under schedule BP that is financial particulars ( if nothing then fill zero)

Use 44ADA schedule and fill all details therein.

Thanks for the reply. What to enter in E3 (Gross receipts) and E4 under 44ADA?

Under E3, enter gross receipts which is as per 26AS statement.

Profit should be either minimum 50% or actual whichever is higher.


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