Dear All ,

In this case all you have to done is to put in your estimated cash balance and actual bank balance used for the business/ profession in the last columns provided. This is point no 51 of P&L A/C of Return Form.

Do you mean to say, to mention the estimated cash balance and the bank balance as at 31.03.2016 in the balancesheet under 'No Accounts Case' (and) the sum of both cash and bank balances to be shown under point no. 51 under profit and loss account i.e 'Transfer to Reserves and Surplus' ?

Dear Sir, 

I have also received the notice u/s 139(9) error code 31 for A Y 15 16 

I am having profession income not mainting my books of account. 

my total receipt was Rs. 694088

Total Expenses was Rs. 328740 (out of Rs. 54088 was towards Exp. under VIA)

Net Profit was Rs. 365348

I Filed ITR 4 A Y 15-16 Profit and Loss Account under Column no. 53 (No Account Case) and noting was filed in balance sheet. 

As per the discussing I now filled the detail of Cash in Balance Sheet Column no. 6 (No Account Case) but while validating the sheet Warning message is displayed as "You have filed both balance sheet and Not Accounts". 

Please guide me what to do to rectify the arrear.

Thanks in Advance 

Dear All,

Thanks a lot for the active discussion on the topic. I realized that from AY2016-2017 onwards it is mandatory to fill both Balance Sheet (BS) and Profit and Loss (P&L) statement. If only P&L is entered and BS is left blank the return becomes defective for ITR-4.  Entering BS will also in most cases entail filling up the relevant sections on Depreciation.

I finally managed to rectify the notice under 'defective return u/s 139(9) error code 31' by submitting a revised return after rectifying the detect.

As advised on this discussion, I prepared a balance sheet in the following way:

The best way to prepare Balance Sheet is to start with 'Application of Funds' section.

In application of funds I first figured out the assets that I use for my profession. For me it includes 1. Car, 2. Computer. 3. Laptop, 4. Two Mobile Phone Phones. 5. Some Furniture at Home, 6. Some Equipment (I use for my profession).  Some were purchased in the beginning of  financial year (2015-16) others were purchased earlier. For those purchased in FY 2015-16, I used the value on the bill and for those purchased earlier I calculated their depreciated value as on beginning of FY 2015-16 as per rules of depreciation. The sum of these asset values were entered into the  Fixed Assets Gross Block Column. Then depreciation for all the assets for FY 2015-16 was calculated and entered into Fixed Assets Depreciation Column.

The software then calculates the Net Block Assets as (Gross Block Assets - Depreciation). I donot have capital work in progress. So this was left zero. So Total Assets in my case = Net Block Assets.

I also showed some value (Rs. 30,000/-) as balance in the bank. All the other columns in the in Application of Funds Section were left blank as they did not apply to me ( I believe for most consultants)

So now the total Application of funds = Total Assets+ Balance in the bank (will be automatically calculated by the Software)

This value (Total Application of Funds) was entered into Source of Funds sections against Proprietor's Capital in Proprietor' Funds column. I left all other columns in the Source of Funds section blank as I did not have loans, reserves, or other liabilities for my business.

This will now Balance the whole BS section. The Source of Funds = Application of Funds!!

Now nothing entered in BS to calculate assets can be shown as an expenditure in the P&L statement.  The depreciation already entered in BS is to be shown as expenditure in the P&L against the Depreciation and amortization column in P&L. 

Depreciation should also be entered in every detail in the relevant sections of Schedule DPM, Schedule DOA, Schedule DEP, and Schedule DCG.

After making these changes (Entering BS, Revising P&L by factoring depreciation, and Entering all relevant schedules of depreciation (DPM and DEP in my case)) I was able to submit the revised return. 

The revised return was processed without further detects and I have received my refund.

Hope this helps.

Dear Sir, 

as in your case you are maintaining books of account, so you entered the relevent detail in balance sheet. 

In my case books of accounts are not mainted and as per the ITR 4 utility in balance sheet column no 6 is applicable for those who are not mainting the books of account. there are only 4 iteam under column no. 6 to fill. i filled the Cash Amount in particular column to rectify the issue. but the utility display the message You have filed both balance sheet and Not Accounts". 

Please give your valuable comment to resolve my issues. 

Thanks in Advance 

Sir,

Regarding Same Case i file defective return , but how to know is ok.. beacuse till date i am not received any conformation or my refund

reply please

Most of the people answering the query appear have no knowledge about ITR-4 Sorry to say that. I am not a CA nor even a commerce student, but I also have the same query.

I studied the ITR-4 form carefully, and under Balance Sheet item there are 6 parts. The 6th part is about:

"In a case where regular books of account of business or profession are not maintained - (furnish the
following information as on 31st day of March, 2015, in respect of business or profession)"

Small size businesses or consultants whose income is less than 10 lakh are actually not supposed to submit the detailed Balance Sheet, but they can fill up Item 6 (NO ACCOUNT CASE). This is for those who do not maintain balance sheet or busines account being small size business.

Hope this help. Atleast this is what I cam going to fill and submit.

Thanks and Regards

Good Morning All,

I have filed an ITR-4 with income under the head business & professions (under saction 44AD- with "No regular Books of Account Maintained"). And ITR-4 instead of ITR-4S has been filed just because of income from Capital Gain.

But the same ITR was taken as defective with the same error code. As there is business income under section 44AD, this error for filing details of Balance Sheets and Profit & loss account should not be there.

Please help...

I have filled ITR 4 with books of accounts not maintained and got the notice u/s 139(9) for defective return. What shall I do

I think you need to add values in the NO ACCOUNTS CASE of Part A - BS (No.6). Just don't leave blank, fill in 0 in all of them for sundry creditors, debtors , stock in trade and cash balance if that applies in your particular situation. In my case I have 2 trucks u/s 44AE and I was advised this from my CA. Also fill in values in P&L Point No. 53 a b c & d.  I think if you leave totally blank , ie even without filing 0, it will not get processed and generate up 139(9).

Sir 

Even column filled with 0 value does not help...some amount has to be given in point 6 balance sheet in No Account Case.

In my case these amounts were shown at 0 value still I received notice under section 139(9) for same error code I.e. 31.

do you mean, enter value for cash in balance and put "0" for other 3 columns ? pl clarify.
 

Same thing happened with me. I have filled 0 in all BS no account case, since I have no cash in hand. But I received the notice. Now What sould I do ?

After defective return submission, do we still need to e-verify updated return ?