1. For last year ITR, you can wait for more 10 days, if nothing comes then again file grievances.
2. Apparently, You can follow same approach for filling the current year return. More accurately can be seponmded after looking into file. If you want I can help you on that
Presumptive taxation
I am a freelancer and work with an international client, getting paid in USD but the amount comes in my account from an EOR platform called Deel after conversion to INR (they charge conversion fee). I provide consultancy services in the field of legal compliance in relation to employment laws, income tax laws, social security laws, and such. I develop content for my client in the form of a summary of these laws, which is put in a country profile on the client’s website. I work on their proprietary tool. I am not a lawyer. Last year (FY 2021-22, AY 2022-23), I filed an ITR-3 to take benefit of presumptive taxation u/s 44ADA (under the code 16013-Business and management consultancy Activities) as advised by a CA on Taxfull, I showed 70% of my income as presumptive income rather than 50%. I do not maintain account books, my income is less than 20lacs p.a. I had paid around 2.30 lacs as advance tax for the year. So, my return came out to be around Rs. 1 lac after filing ITR. I also had capital gains from selling equity and mutual funds. I filed my ITR in July 2022, but my ITR has not been processed yet as of June 2023. Upon filing a grievance, I got the response that my ITR has been caught under Seek for Clarification and a notice for the same will be sent on my email ID. However, it has been more than 15 days since the response and I have not received any email. I checked on the online income tax portal under the e-proceedings also, there is nothing. So now I have two questions – 1. What should I do further with my last year’s ITR to get it processed? 2. How should I file my current ITR – with presumptive income or not? I am confused as to why the previous ITR got caught and if it will be repeated if I file the same this year as well?
Asked 2 years ago in Income Tax
- The time limit for issue of intimation u/s 143(1) is nine months from the end of the financial year in which return of income is made. As the ITR was filed on July 2022, last date for issue of intimation u/s 143(1) is 31.12.2023
- Under presumptive taxation scheme, a sum equal to 50% of gross receipts or actual profit whichever is higher shall be deemed to be the profits and gains of such profession
For detailed discussion you may opt for phone consultation
Processing of ITR is system driven. As mentioned by you, your ITR is selected seeking for clarification then you should wait for the notice. For current year ITR, pay tax on actual profit from freelancing income. In respect to ITR for AY 2022-23, wait for the notice to understand differences if any.
You must check for your action tab or for your information tab for more info on it if you have been served for clarification.
Is your receipts less than 20 lakhs or income?
If your receipts are more than 20 lakh then receiving money in such a manner might affect your GST.
You can use presumptive taxation.
You must have claimed huge refund from advance tax and that could be a reason for getting caught.
Hope you find the information helpful, if yes do rate if 5 and provide your valuable feedback for my improvement.
Thank you.
My receipts are less than 20 lac, and I showed an income of 70% of receipts under presumptive taxation (44ADA). Am I supposed to keep books and undergo an audit? Also, I did not know of presumptive taxation before this so I had paid a lot of advance tax, hence the return is a bit high.
Asked 2 years ago
No not required for audit in my opinion.
Since return is high that's why there is a notice.
I can assist you to resolve the same.
For the last year, you can check in information tab on e-portal. In case it is not received, you can wait for some more time as the last date is 31/12/2023.Further, for the current year you can still show under presumptive taxation. Audit need not be done.
We can help u with advance taxes and return filing.
Hi - I received this intimation notice today - Adjustment of Income araising u/s sec 143 (1)(a)(ii): Claim of CYLA not taken into account while computing the total income as original return of income filed after the due date/no information or insufficient information provided in Sch: CFL. Do I need to file a revised return for this?
Asked 2 years ago
Yes, and also pay taxes if payable
I am unable to understand the issue. Since you have not filed return within due date you cannot carry forward losses that is correct you need not do anything.
Under the e-proceedings tab, see only Agree and Do Not Agree Options. If I click on any of them, a message opens up that says - "I Solemnly declare that, to the best of my knowledge and belief the information given is correct and is in accordance with the provisions of the Income Tax Act, 1961" and only Submit button is there. There is no option for giving a response or filing a revised return. How do I proceed with this?
Asked 2 years ago
You can not file the revise return now. If you are not satisfied with the disallowance you can file the rectification
For detailed discussion you may opt for phone consultation
If you disagree they will allow you to write your response in my opinion.
Do let me know if you need to know anything and we can have a call consultation.
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