Hi all,
My client's return got defective. He has a turnover of Rs.10 lakh and opted for presumptive taxation ad 60000 was offered as income. While filling the particulars in ITR 3, we skipped P&L Section and filled 'NO ACCOUNTS CASE' section. Similarly in Balance sheet also we filled NO ACCOUNT CASE section only. But a communication was received from the IT Dept that his return is defective stating that.
"a) The Gross receipts is not mentioned in the Profit & Loss A/c, OR b) The profit shown is less than 6% of the gross receipts as prescribed u/s 44AD but has not mentioned the maintenance of the books of accounts and audit report u/s 44AB in Part A-General and the total income exceeds the maximum amount not chargeable to income tax"
1. Please tell me what was wrong.
2. Also want to know whether I should fill only the P&L and re-submit or should I tick the 44 AA section and fill up the Balance sheet also ?
Please help.
CAclubindia
