08 March 2014
hi My query is An assessee has income from salary and profession in p/y 2012-13.he filed itr 4 mentioning gross receipts 90k expenses 104000(actual)and a net loss of 14000 to be carry forward .plus his income from salary was 720000.h tds was deducted 9000 and 65000 u/s 194j and 192 resp.Now a Notice under section 139(9) of Income Tax act is received from cpc banglore mentioning the return is considered defective reasons are as below 1 14 Assessee entering negative amount in gross profit or net profit. 2 23 Where assessee furnish total of amount deducted in Sl.no.2,3,4 and 5 of Schedule BP should be consistent with Total credits in the P and L Slno.5
so please suggest what to do?shall i make expenses nil or net profit nil
09 March 2014
Dear Faizan, If you want to claim loss under profession, you will have to account audited, then you can claim loss. However you can file return u/s 139(9)without claiming loss under profession.
09 March 2014
but this is nowhere mentioned in any sections ,notifications of IT Act. Are You sure.what if i minimize my expenses and make Net profit nil.are nt there chances of scrutiny or ITO will doubt the authenticity of expenses shown earlier
10 March 2014
Dear Faizan, If you mention the net profit negative or positive, you will have to account maintain and audit, both is requied unless profit should be 8% or more.
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