I have filed ITR 4 for FY 2016-17 shown income as Business. But few of my cleints had incorrectly deducted TDS under professional category so there is a mismatch in form 26AS and I have got below (Pls see at bottom) notice/intimation from IT return.Now since my income was on business billing and not professional income , I can't show it as professional and accept their adjustment . Pls suggest what is the right step to take as I seem to have following options
1) accept their adjustment (but that would be incorrect in my view)
2) File revised return as ITR 3
3) Do not not accept adjustment and submit reponse ( I'm not sure what would be the course of action thereafter)
4) Any other options you may suggest.
Thanks
Following is the copy of letter
The return for PAN XXXX, Assessment Year 2017-18 E-filing- Acknowledgement number xxxxxxxxxx Dated
09-AUG-17 {AY, Acknowledgement Number and Date are obtained from the ITR} contains the errors/incorrect claims/ inconsistencies
which attract adjustment(s), as specified u/s. 143(1)(a) of Income Tax Act, 1961, as annexed in Part-A [(i) to (vi), as applicable].
You are herewith afforded an opportunity to respond to the proposed adjustment(s) u/s. 143(1)(a),mentioned below, within a period
of 30 days (thirty days) from the date of issue of this communication. Please provide the required information or file a revised return,
as applicable, through online mode. To submit response, kindly log on to www.incometaxindiaefiling.gov.in with your "user name and
password" and choose "e-Assessment/Proceeding" under the “e-proceeding" section.
Kindly note:
1. Revised return uploaded as above should have all the data to enable processing. It should contain complete information as
furnished in the earlier return along with information pertaining to the errors/incorrect claims/ inconsistencies listed below.
2. You are advised to use the software utility available on the website www.incometaxindiaefiling.gov.in to avoid errors.
3. The online response to this communication will be presumed to be duly verified, correct and complete in accordance with the
provisions of the Act.
4. The response so received shall be considered before making any adjustment. In case, no response is received
within 30 days (thirty days) of issue of this intimation, the return of income will be processed after making
necessary adjustment(s) u/s 143(1)(a) of Income Tax Act, 1961 without providing any further opportunities in this
matter.
CAclubindia
