44ad and rule 7a

This query is : Resolved

Sumesh (Querist)
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13 April 2017 Dear Sir,
We need to file a rectified IT return of one of our client. The assessee is an automobile dealer and he likes to opt 44AD for his business income, Books need not be maintained if 44AD is opted. Similarly at the same time the assesse have income under Rule 7A—Growing and manufacturing of Rubber in India, as per Rule 7A Agricultural income = 65% Non-agricultural income or Deemed Business income = 35%

We filled the ITR 4 by showing 44AD and Rule 7A.
44AD is shown under presumptive income. and Rule 7A income shown separately under business or profession category. While validating the ITR the following error is shown

Error Message
In Computation window, you have entered 'Net Profit Before Tax as per P & L a/c' under Business / Profession head and ticked for 'Books not maintained cases' in ITR data entry window. Therefore, enter Gross receipts / Gross profit / Expenses / Net profit under Books not maintained cases in ITR data entry window.

Please advice how the error can be rectified.
Our main doubt is that whether 44AD and Rule 7A can be shown together in ITR4..If so how can it be shown in ITR4. Please advice. The above issue is related to AY 2016-2017

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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13 April 2017 Rule 7A Income has to be included under presumptive income. You can't opt for 44AD for one of the business. All business has to be combined and opted for 44AD.