05 June 2019
I am a doctor having some salaried income and some from professional practice. I also have a small income from foreign country as a consultant. I therefore filed ITR 3 in AY 2018-19 as I need to show foreign income in Schedule FSI. As I do not maintain books of account, I opted for Presumptive Income from Profession (44ADA) and thus selected the No Accounts Case in ITR 3 (General Section).
On Balance Sheet page, I filled only sec 6 (No Accounts Case) as follows: Sundry Debtors = 0 Sundry Creditors = 0 Stock in trade = 0 Cash balance = 0
On Profits and Loss Account page, I filled only sec 53 (ii) for Professions (No Accounts Case) as follows: Gross Receipts = 900000/- Gross Profit = 450000/- (i.e 50% of Gross Receipts to show Presumptive Income) Expenses = 0 Net Profit = 450000/-
The Schedule BP - Computation of Income from Business or Profession thus reflected: A: From Business or Profession 1: Profit before tax as per profit and loss account (item 45 and 53 of Part A-P and L ) = 450000/-
4. Profit or loss included in 1, which is referred to in section 44AD/44ADA/44AE/44B/44BB/44BBA/44BBB/ 44D/44DA/ Chapter-XII-G/ First Schedule of Income-tax Act = 450000/-
36. Profits and gains of business or profession deemed to be under - ii Section 44ADA = 450000/-
37. Net profit or loss from business or profession other than speculative business and specified business (35 + 36xi)) = 450000/-
38. Net Profit or loss from business or profession other than speculative business and specified business,after applying rule 7A, 7B or 8), if applicable (If rule 7A, 7B or 8 is not applicable, enter same figure as in 37) (If loss take the figure to 2i of item E) = 450000/-
The computation of income page thus reflected: PART B - TI (Computation of Total Income) 3. Profits and gains from business or profession i Profit and gains from business other than speculative business and specified business (A38 of Schedule-BP) (enter nil if loss) = 450000/-
vi Total (3i + 3ii + 3iii + 3iv + 3v) (enter nil if 3vi is a loss) = 450000/-
However, I still received a notice u/s 139(9) with error code 311 that "Taxpayer having income under the head Profits and gains of Business or Profession but has not filled Balance Sheet and P & L Account...". The probable resolution that the notice mentions is "The Part B of the P & L account and part B of the Balance Sheet (i.e. No Account Case Section) should be entered in the corrected return.."
But as you can see above, i have indeed filled data for both P&L and Balance Sheet under presumptive income by taking 50% of Gross Receipts. And I have filled all the other sections to show my salary and other income. Still I am getting this notice. Please help.
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