I got notice under Section 139(9)

Your CA has offered tax by using presumptive income section whereas he has selected some wrong business code and because of which you have received such notice so this defect needs to be rectified and return needs to be filed again.

It's not a major issue and since you are a technical professional you need to file return u/s 44Ada and show income @50% of total receipt.

So do you have foreign clients or are you a non resident?

You need to reply such notice within 30 days I guess otherwise they will reject your return and consider as if you have not filed return.

Hope you find the information helpful if you do please rate it 5 and provide your valuable feedback for my improvement.

Thank you

Hi

The notice is correct. You cannot opt for presumptive taxation under section 44AD as 44AD is only applicable for business income. You have a professional income.

You may revise the return now in response to this notice. You may either file with complete income and expenses details showing actual profit or you may opt for section 44ADA whereby 50% of your gross receipts shall be considered as income.

We may assist you with the same.

Not out of all your income only out of your professional income I.e. web development receipt.

That's the minimum you need to declare as income if you don't want to maintain books of accounts.

Yes you don't need to but being a professional you are expected to atleast maintain some basic set of books.

Thank you

According to the notice extracts, you have opted for 44AD wherein 8% of gross receipts is declared as income.

You can opt for 44ADA; no books of accounts need to be maintained. 50% of gross receipts means 50% of your total turnover. 

44ADA is not mandatory. You can always show more than 50% profit in your return. 

Dear Sir,

Hope you are doing well !!

Yes, the provisions of Section 44AD are not applicable.

You need to file the return u/s 44ADA.

In case of a person adopting the provisions of section 44ADA, income will be computed on a presumptive basis, i.e. @ 50% of the total gross receipts of the profession. In other words, total gross receipts from profession should not exceed Rs 50 lakh for a financial year.

-No, it is not mandatory. You can show more than 50% profit in your ITR.

-Further, the income of any person making use of this section is considered to be 50% of the Total Gross Receipts for the year and no further deductions will be allowed to be claimed for the purpose of the profession. 

-The assesse would NOT be required to maintain books of accounts or get the account audited unless he claims that the profits are less than 50% of the Total Gross Receipts. 

Hi,

- 44ADA is applicable if the gross receipts is less than Rs.50 lacs. You were required to show income u/s 44ADA and not 44AD as you fall into the category of specified professionals. 

- You are not required to maintain books of accounts if you are availing the above benefit of section 44ADA.

Thanks

Hi

Your services  comes under 44ada,not under 44ad.

Yes ,Under 44ADA,50% profit to be declared,even higher can also be declared if you wish.NO requirement of book of accounts .

Hope it helps

Considering, you are rendering professional services; you are covered by sec 44ADA and not sec 44AD, if your turnover is less than 50 lacs.

I assume that your total receipts from web designing for the financial year is less than 50 lacs and you are based in India and providing such services. If you are covered by sec 44ADA, you just have to show 50% of your total receipts as profit.  The tax then would be at slab rates.  It does not matter whether your actual profit is 80% or 40%. You don’t have to maintain proper books of accounts.

PLease change the sec and file a revise return and then it should be sorted. 

It would be worth discussing over a call in case you have further issues or need clarification.