I used to file ITR 4S for my relative since previous in 4S there was no separate column to declare turnover from the profession, I used to declare consolidated turnover in a single column which was designated as turnover u/s 44AD and I used to declare 25 % profit on turnover
Now previous year, also I followed the same procedure, after which AO initially sent an email to me which stated that there is a disparency in my ITR as in 26AS TDS is deducted for professional fees but I have not declared any professional fees in ITR, after which I closely studied ITR 4 of 17-18 and realized that in the ITR form 4 17-18 there is a special column for Presumptive income under 44ADA (Profession) in which I had not filled in anything
Now I have got email notice u/s 143 1 a and I have been asked in e proceedings to submit my reply to the proposed addition of income by AO since as per 26AS 86000 were my Gross receipts from profession which I didn't mention in the column Also, it is expected that I should revise my return
my question is should I reduce receipts from Trading and add it in professional receipts which is actually more than 86000 (around 400000 lakhs) so what should I do
option 1
add 86000 as professional receipts, keep trading gross receipts unchanged at 24 lakhs
option 2
add 400000 as professional receipts, change trading gross receipts to 20 lakhs
option 3
Visit AO officer (may involve risk as my case may be highlighted before him)
option 4
you suggest please if any other option
CAclubindia
