Hello sir, I'm drawing professional fee every month and all these years had not filled anything in balance sheet nor p&l sheet even in no book of accounts, only last fin year returns CPC has mailed it as defective, asked to fill no book of accounts, item 6 in BS & item 53 in p&l sheet of itr4 My pay slip has these: Retainer fee City compensatory allowance Education allowance Vehicle maintainence Incentives & TDS What do I fill for sundry debtors/creditors etc n for gross receipts/profits/net profit
It seems like a fixed salary arrangement. Please check under which section they deduct your TDS. Is it under section 192 or 194J.
To me, it seems like a salary arrangement and in that case you should file ITR 1 and not ITR 4.
Please feel free to call/ revert in case of any doubts
Thanks and Regards
Abhishek Dugar
CA CS B.Com
Hi
In Many cases Cpc send this type of notices
But don't worry
In bs
Fill your debtors , creditors and cash in hand figures
Stock in hand is 0 in your given case
Debtors amount is amount received in the month of April which belongs to march
Creditor is also 0 in ur case
Cash in hand if u know amount then it's great otherwise fill around below 1.5 lacs
Profit n loss
Under
Non maintains Books of Accounts
Gross receip which u earns
Gross profit same as receipts coz gross profit not applicable on services
Exp = which incurred for earning above receipts
For any further query or doubt raise your question
Hi,
If in your case it is not mandatory to maintain books of account. then in Balance sheet (in asset side) you can just fill all bank account balance altogether as on 31st March. and in liability side the same amount you can show as capital amount.
i fill for all my client the same way as i mentioned , if they are not liable to maintain books of account. and their ITR has been processed without any issue.
it is been electronically validated and declared defective if balance sheet and P&L accounts are not fill.
In Profit and Loss account you can claim all the expenses related to your professional income like petrol bill, telephone bill, etc.
If you are drawing retainer fee as professional fee, then you would not have got CCA and other allowances. The TDS could have been 10%, if it is paid as professional charges u/s 194J but if you were paid as salary the TDS could have been as per the computation of your tax liability made by your employer u/s 192. So please check whether your status was that of employee or that of a service provider.
If you are an employee, you would have received Form No. 16 and if you are a service provider it would have been Form 16A. Pl check 26AS for the relevant section under which tax was deducted.
As you have received the notice from CPA marking your return as defective, you can rectify it by filling in the details of sundry debtors/creditors, cash and bank balances in Balance Sheet section and the details of gross receipts/profits and expenses in the P&L section in the return. However, pl. make sure that the TDS was in respect of your professional income and it was not in the nature of salary income. Otherwise, it may result in mismatch between TDS as per 26AS and TDS as claimed by you, though the amount is same.
There is option in ITR 4 at the bottom of form in which only 4 important figures are asked. U can fill 0 if u don't have debtors and creditors
Thanks to all for the responses, It's 10% TDS & form 16A, & 194J, I'm a medical professional As of now, from discussions & suggestions, I have understood as, in item 6 of part A BS, I will enter nothing and in P & L account- gross receipts & gross profit (same) will be my gross income and expenses (which is been deducted from gross) s'd be entered to get net profit which is nothing but the taxable income been entered in part B-TI, 3i-Profit and gains from business other than speculative business and specified business (A37 of Schedule-BP) .... Please correct me if I'm wrong...
Hello Sir,
It is advised to enter some expense while filing your returns or else it may be termed as defective again.
Trust this clarifies your query.
Feel free to call / get back in case of further clarifications.
Thanking You.
Regards,
Rohit R Sharma
BCOM, ACA, LLB-GEN, CERT. FAFP
As you have received the notice from CPA marking your return as defective, you can rectify it by filling in the details of
(a) sundry debtors/creditors, cash and bank balances in Balance Sheet section; and
(b) the details of gross receipts/profits and expenses in the P&L section in the return.
Hi,
Yes. You are right
Dear Sir,
The treatment seems correct
Dear Sir,
If you are a medical professional, you need to maintain books of accounts. you cannot opt deemed profit of 8%. if your gross receipts are more than INR 1,50,000 in any of the previous three years.
Please refer the below link:
http://www.charteredclub.com/section-44aa/
You cant opt for no accounts case.
Please feel free to call/ revert in case of any doubts
Thanks and Regards
Abhishek Dugar
CA CS B.Com
Sir if there are no sundry debtors/ creditors them mention 0 in the said fields.
Put gross Receipts and gross profit as same.
