Are You Covered Under Tax Audit

[canikhil]

re-uploading image as it got deleted by postimg

Do one thing. Check your page 1 of ITR. And see what your CA has selected for 44AA. Yes or no.

these notices have been issued for long time now. Change of govt has nothing to do with this. The defective return notices are based on specific parameters. If you are filing ITR4 with 44AA selected as Yes, then BS and PL sheets have to be filled properly.

 

[Kashasathi]

Suri bhai !!!

First of all your CA unless your income is declared as 8 % of turnover ,you would have covered U/S 44AA so he should have filed the return with respective balance sheet and P& L at first filing itself

Xray sir,my CA declared 8% and filed under 44AD only.

And clicked NO for:
Whether liable to maintain accounts as per section 44AA?
-NO
Whether liable for audit under section 44AB?
-NO

I am what could be the reason.
If IT Dept dont consider 44AD,then why dont they dismiss it totally by informing or updating with Finance Ministry?

 

[Kashasathi]

Do one thing. Check your page 1 of ITR. And see what your CA has selected for 44AA. Yes or no.

these notices have been issued for long time now. Change of govt has nothing to do with this. The defective return notices are based on specific parameters. If you are filing ITR4 with 44AA selected as Yes, then BS and PL sheets have to be filled properly.

As replied to Xray Sir,
NO is selected for 44AA and 44AB

 

[canikhil]

As replied to Xray Sir,
NO is selected for 44AA and 44AB

Ok. and what about the business/profession code? and what was the turnover you declared?

 

[suri112000]

Suri bhai !!!

First of all your CA unless your income is declared as 8 % of turnover ,you would have covered U/S 44AA so he should have filed the return with respective balance sheet and P& L at first filing itself

I was merely setting off my profits made during the current year with that of previous years losses.

After setting off, current year profits became zero which attracts 8% profits rule.

So, my return should carry P and L statement and balance sheet which I provided after IT notice.

 

[Kashasathi]

Ok. and what about the business/profession code? and what was the turnover you declared?

0906 instead of 0202(is this a mistake Nikhil Sir??)

 

[XRAY27]

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[canikhil]

0906 instead of 0202(is this a mistake Nikhil Sir??)

0906 is entertainment industry which is covered under 44AA regardless of your turnover, profit etc. So yes, this is the mistake which led to this notice.

 

[Kashasathi]

0906 is entertainment industry which is covered under 44AA regardless of your turnover, profit etc. So yes, this is the mistake which led to this notice.

so as I suspected,it will again rejected by IT Dept in few days
What should I do next?

Even if the code is wrong,as per 44AD,it should get proceed..If not,then whats the benefit of 44AD?

 

[Kashasathi]

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what was your reply Xray Sir that you need to edit after 3hrs into ------------