" As the provisions of Section 44AD are not applicable, in your case, the claim of computing profits and gains of business on presumptive basis, under this special provision is not allowable." I have this notice yesterday. For AY 18-19 I used business code: 14006 I am running a transcription unit with 3-5 typing team and for AY 18-19 the I had total 18,73,850 rupees through Paypal. Paypal using the Code P0803 Data Processing (RBI Code). For AY 17-18 I used code 0709 (IT enable Service) and there was no such issue in filling under 44AD. Also the same for AY 16-17. Please let me know what to do next. Should I change the business code to 14005
You have basically used the code for BPO services which I guess is not appropriate.
14005 would be more appropriate and it has a wide scope. As 44AD defines eligible business as any business there should not be any problem as you are running a proper business so just revise the return and change the business code.
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Thank you
So, may I only change the Code to 14005 (IT enable Service) and keep the tax calculation same. Then upload the new xml in response to 139(9) error 86 notice. Also please let me know what is the maximum number of time the department can issue defective return notice before cancelling the return. Means if a person use a wrong code again in response to 139(9) - 86 again what will the CPC do, The CPC will issue 139(9) again or reject the return or take any other action. I have this notice for first time. Also if possible please let me know which code under "Computer and services" comes under 44AD and 44ADA. Thanks
Yes I think you must go ahead by just changing the code and I haven't seen any return getting defective notice second time after one has made the error correct so just relax and make sure you have properly corrected the error and there is no other issue.
They only reject the return and can't do anything else and if you don't file the response to same they could send you a notice saying that you haven't filed any return for the said year.
Thank you
Hi,
Hope you are doing well !!
You just need to file the revised return with business code 14005.
Log in Income tax efiling portal. Choose the link e-file and Response to notice u/s.139(9) and agree for the error and upload corrected ITR-4 in XML format and submit.
Mistakes can be corrected at any point of time. If there is notice again then you can make reply for the same.
Hi
It is advisable to file revise return with code 14005.
Hope it helps
Hi,
Yes, you need to submit the revised return with business code 14005.
