IT RETURN-REG
This query is : Resolved
07 August 2020
DEAR SIR / MAM
I DOING AGRICULTURAL PRODUCT BUYING AND SELLING BUSINESS, AND ALSO WORK IN PRIVATE COMPANY, I HAVE NOT ELIGIBLE FOR INCOME TAX FOR SALARIES BASIS, BUT AGRICULTURAL BUSINESS INCOME HOW TO SHOW THE RETURN,
NOTE : I AM ONLY INTERMEDIATOR. ( ( AGRICULTURAL PRODUCTS MANUFACTURER > I AM BUYING > SALE TO TENDERS ) IF SOME TIMES GET PROFIT SOME TIMES GOES TO LOSS ))
I DOING AGRICULTURAL PRODUCT BUYING AND SELLING BUSINESS, AND ALSO WORK IN PRIVATE COMPANY, I HAVE NOT ELIGIBLE FOR INCOME TAX FOR SALARIES BASIS, BUT AGRICULTURAL BUSINESS INCOME HOW TO SHOW THE RETURN,
NOTE : I AM ONLY INTERMEDIATOR. ( ( AGRICULTURAL PRODUCTS MANUFACTURER > I AM BUYING > SALE TO TENDERS ) IF SOME TIMES GET PROFIT SOME TIMES GOES TO LOSS ))
07 August 2020
Trading in agricultural products is a 'business' and income therefrom is taxable under
the head 'income from business'.
the head 'income from business'.
08 August 2020
HOW TO FILE THE ITR. ( ALSO I GETTING SALARY INCOME )
08 August 2020
file ITR 4 IF NO REGULAR BOOKS IS MAINTAINED AND ITR 3 IF REGULAR BOOKS ARE MAINTAINED
08 August 2020
file ITR3/4 . Show salary and Business income
02 August 2022
I File ITR -1 ( Late Filling ). I received Error message From Income Tax Department. Below message For your reference.
Error Description
The gross receipts shown in Form 26AS are higher than the total of the receipts shown under all heads of income, on which credit for TDS has been claimed, in the return of income filed. Thus, while credit for TDS is being claimed in the return of income, the corresponding receipts are not fully disclosed in the respective income schedules. Hence, the return of income filed is regarded as defective, as per clause (a) of the Explanation under section 139(9).
I verified Form 26As also TDS deducted amount matched.
How to close this issues. kindly guide me sir.
Error Description
The gross receipts shown in Form 26AS are higher than the total of the receipts shown under all heads of income, on which credit for TDS has been claimed, in the return of income filed. Thus, while credit for TDS is being claimed in the return of income, the corresponding receipts are not fully disclosed in the respective income schedules. Hence, the return of income filed is regarded as defective, as per clause (a) of the Explanation under section 139(9).
I verified Form 26As also TDS deducted amount matched.
How to close this issues. kindly guide me sir.
02 August 2024
To resolve the issue with filing your Income Tax Return (ITR) when you have agricultural business income, salary income, and are facing errors related to discrepancies between Form 26AS and your ITR, follow these steps:
### 1. **Understanding the Nature of Your Income**
- **Agricultural Business Income:** Since you are an intermediary in the buying and selling of agricultural products, your income might not fall directly under agricultural income, but rather under business income if you are dealing in the products.
- **Salary Income:** You have income from a private company, which will be treated as salary income.
### 2. **Correct ITR Form**
- **ITR-3 or ITR-4:** For individuals with business income, ITR-3 or ITR-4 is typically used. ITR-1 is not suitable for individuals with business income.
- **ITR-3:** For individuals and Hindu Undivided Families (HUFs) who have income from business or profession along with other sources like salary.
- **ITR-4:** For individuals, HUFs, and firms (other than LLP) opting for a presumptive taxation scheme under sections 44AD, 44AE, or 44ADA.
### 3. **Filing the Correct ITR Form**
- **Choose the Right Form:** Since you have business income, you should use **ITR-3** if you are maintaining books of accounts or **ITR-4** if you are opting for presumptive taxation under Section 44AD/44AE.
- **ITR-4** can be used if your business income is under presumptive taxation (e.g., income from trading agricultural products, provided it does not exceed the limit specified for presumptive taxation).
- **Disclose Income Properly:** Ensure that all your sources of income are correctly reported. For agricultural business income, declare it under the "Business Income" section.
### 4. **Addressing the Error**
The error message indicates that the gross receipts reported in Form 26AS are higher than what is reported in your ITR. This mismatch could be due to several reasons:
- **Mismatch Between Form 26AS and ITR:** Verify that all income reported in Form 26AS is included in your ITR. Ensure that you have reported all receipts from the agricultural business accurately.
- **Correct Reporting in ITR:**
- Go to the **"Business Income"** section of the ITR form and ensure you have included all gross receipts.
- If you have reported the business income in a different section or inappropriately, correct it.
### 5. **Steps to Correct the Return**
1. **Refile Your Return:**
- **ITR-3 or ITR-4:** Refile the return using the appropriate form.
- Ensure that all fields, especially regarding business income and TDS, are correctly filled out.
2. **Correct Errors:**
- Review your Form 26AS and ensure that the total receipts mentioned in your ITR match the amounts reported in Form 26AS.
- If there was an error in the earlier return, revise the return using the "Revised Return" option.
3. **Submission of Revised Return:**
- File the revised return online through the Income Tax e-filing portal.
- Ensure you select the correct assessment year and update all necessary details.
### 6. **Late Filing Considerations**
- **Penalties:** If you are filing late, be aware of any penalties or interest charges for delayed filing.
- **Revised Return:** If you are filing a revised return after the due date, ensure to follow the guidelines for late filing.
### 7. **Documentation and Assistance**
- **Documentation:** Maintain all relevant documents, including proof of income, TDS certificates, and Form 26AS.
- **Seek Professional Help:** If needed, consult with a tax professional or chartered accountant to ensure all discrepancies are resolved and your return is filed correctly.
### Summary
- **Use ITR-3 or ITR-4** based on your specific situation.
- **Ensure all income and TDS details** are accurately reported in the return.
- **Revise your return** if there was an error or mismatch.
Filing the correct form and addressing the errors will help you comply with tax regulations and avoid issues with the Income Tax Department.
### 1. **Understanding the Nature of Your Income**
- **Agricultural Business Income:** Since you are an intermediary in the buying and selling of agricultural products, your income might not fall directly under agricultural income, but rather under business income if you are dealing in the products.
- **Salary Income:** You have income from a private company, which will be treated as salary income.
### 2. **Correct ITR Form**
- **ITR-3 or ITR-4:** For individuals with business income, ITR-3 or ITR-4 is typically used. ITR-1 is not suitable for individuals with business income.
- **ITR-3:** For individuals and Hindu Undivided Families (HUFs) who have income from business or profession along with other sources like salary.
- **ITR-4:** For individuals, HUFs, and firms (other than LLP) opting for a presumptive taxation scheme under sections 44AD, 44AE, or 44ADA.
### 3. **Filing the Correct ITR Form**
- **Choose the Right Form:** Since you have business income, you should use **ITR-3** if you are maintaining books of accounts or **ITR-4** if you are opting for presumptive taxation under Section 44AD/44AE.
- **ITR-4** can be used if your business income is under presumptive taxation (e.g., income from trading agricultural products, provided it does not exceed the limit specified for presumptive taxation).
- **Disclose Income Properly:** Ensure that all your sources of income are correctly reported. For agricultural business income, declare it under the "Business Income" section.
### 4. **Addressing the Error**
The error message indicates that the gross receipts reported in Form 26AS are higher than what is reported in your ITR. This mismatch could be due to several reasons:
- **Mismatch Between Form 26AS and ITR:** Verify that all income reported in Form 26AS is included in your ITR. Ensure that you have reported all receipts from the agricultural business accurately.
- **Correct Reporting in ITR:**
- Go to the **"Business Income"** section of the ITR form and ensure you have included all gross receipts.
- If you have reported the business income in a different section or inappropriately, correct it.
### 5. **Steps to Correct the Return**
1. **Refile Your Return:**
- **ITR-3 or ITR-4:** Refile the return using the appropriate form.
- Ensure that all fields, especially regarding business income and TDS, are correctly filled out.
2. **Correct Errors:**
- Review your Form 26AS and ensure that the total receipts mentioned in your ITR match the amounts reported in Form 26AS.
- If there was an error in the earlier return, revise the return using the "Revised Return" option.
3. **Submission of Revised Return:**
- File the revised return online through the Income Tax e-filing portal.
- Ensure you select the correct assessment year and update all necessary details.
### 6. **Late Filing Considerations**
- **Penalties:** If you are filing late, be aware of any penalties or interest charges for delayed filing.
- **Revised Return:** If you are filing a revised return after the due date, ensure to follow the guidelines for late filing.
### 7. **Documentation and Assistance**
- **Documentation:** Maintain all relevant documents, including proof of income, TDS certificates, and Form 26AS.
- **Seek Professional Help:** If needed, consult with a tax professional or chartered accountant to ensure all discrepancies are resolved and your return is filed correctly.
### Summary
- **Use ITR-3 or ITR-4** based on your specific situation.
- **Ensure all income and TDS details** are accurately reported in the return.
- **Revise your return** if there was an error or mismatch.
Filing the correct form and addressing the errors will help you comply with tax regulations and avoid issues with the Income Tax Department.
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