My father's return was marked defective in January 2017, and the defect was as follows: "Tax payer having income from business and profession but has not filled Balance Sheet and Profit and Loss Account as required in explanation (d) under section 139(9) read with section 44AA." THIS DEFECT of Explanation (d) WAS FIXED AND E-FILING U/S 139(9) WAS DONE in January 2017 itself. _________________________________________________ Now the above-mentioned 139(9) return has been processed and again marked as defective. The DEFECT: "Tax payer having income from business and profession but has not filled Balance Sheet and Profit and Loss Account as required in explanation (f) under section 139(9) read with section 44AA." This time it's an explanation (f) defect. What to do? Please advise.
Hi,
yes you have to fill balance sheet and profit and loss account if you are filing ITR 4,
if you would like to take my assistance in filing the return, i can help you.
here is my email ID agarwalvishakha23@gmail.com.
If you have marked tick and liable to maintain books of account, then you are required to fill Balance sheet and P & L account.
Dear Sir,
May be you have not filled the details of one or more of the following :
1 .Debtors,
2. Creditors,
3. stock
4. cash/bank
5. Turnover
6. Gross profit
7. Expenses
8 Net profit.
Please feel free to call/revert in case of any doubts
Thanks and Regards
Abhishek Dugar
CA CS B.Com
Liable to maintain books of account was marked 'NO' while fixing section (d) defect. The FIRST DEFECT. _____________________________________ But perhaps the return filer did not fill other things correctly while fixing the return? Hence the second defect? I say this because the second defect is DIFFERENT from the first one. The probable resolution offered by e filing site specifically in the email (Second Defect): "The Part B of Profit and Loss Account and Part B of the Balance Sheet (i.e. No Accounts Section) should be entered in the corrected return"
Yeah..that is what i was saying that the may be you have missed filling one of the eight informations mentioned in my first reply.
Dear Sir,
How much income you have shown form business and profession ?
If its more than 1,50,000 in case of professional and more than Rs. 10,00,000/- in case of business.
also need to check whether you have selected the correct check option or not. since defect was not rectified in first instance but nature of defect is changed.
What is section (f) defect? ______________________________ Vishakha - liable to maintain book of account is not there and was marked No. Abhishek, thanks. My father's tax filer did not fill 'No Accounts Case' after saying no to 'liable to maintain book of accounts". I just checked my father's defective return XML file and --- 'No Accounts Case' in his BS is EMPTY. "No Accounts Case" in his PL mentions only GROSS PROFIT and NET PROFIT. What is the solution? Just to fill these columns? This is what resolution offered by e-filing seems to be saying. As follows: ""The Part B of Profit and Loss Account and Part B of the Balance Sheet (i.e. No Accounts Section) should be entered in the corrected return" Is this correct?
The defect (d) was due to non-submission of the details of financial statements as you filed your original return by mentioning that you maintained books of accounts. Now while rectifying the return, you indicated that no books of accounts were maintained and did not fill in the details of sundry debtors, creditors, cash in Part B of the Balance Sheet section and Gross Receipts, Gross Profit, Expenses and profit in Part B of the Profit and Loss Account section. Hence, the defect (f).
Now you need to give the details in Section B of the P&L and B/s, if you don't maintain accounts or give the details in Section A of the P&L and B/S, if accounts are maintained. If you use a standard software, you should not have problem in filing the return.
Hi,
i think it should be that way.
can you also mention what is error code written there
Sir in No Accounts Case you need to fill all i.e. gross receipt, Gross profit expenses and Net profit.
Also in Balance Sheet if you dont have details then put zero compulsory.
You need to also tick on Profit on Loss, Balance Sheet on the above where books of accounts are maintained that it is not applicable.
Sir this is general problem coming to many. We are also trying to coordinate with Bangalore CPC but they too are not able to answer
Thank you all for the answers. Vishakha - I don't know the error code. How do you see error code? Thanks Shyam, and to refer your answer: In 'No Accounts Case' can the expenses be put as Zero? Father has no accounts maintained. On the 'No Accounts Case' BS page, I found the data fields EMPTY. You have written put 'zero' compulsary. Will other experts here agree? That on the BS page, put zero compulsorily, if no details available? All that I have written above deals with 'No Accounts Case' only.
Sir I have done the same with my clients and again they have not received 139(9)
When you don't maintain accounts, the part B of the Profit and Loss Account and Part B of the Balance Sheet will have to be filled in. The net income as disclosed in Part B of the Profit and Loss account is carried to the Income from Business/Profession section by the software. Hence, you cannot have variations between these two figures.
Instead of putting zeroes, I suggest that you should make reasonable estimate of your creditors, debtors and cash/bank balances and put them in Part B of the Balance Sheet. Likewise, make reasonable estimate of your gross turnover, gross profit, expenses and net profit in Part B of the Profit and Loss Account. Pl. ensure that the same net profit is carried to the computation of income from Business/profession. Then you will not have any errors. Pl. use standard software to ensure that there are no errors in filing the return, as the software validates the returns before creating xml file.
Hi,
generally error code in appeared in Annexure A where it is define the reason of error.
May be they have changed the format.
On the 'No Accounts Case' BS page- you need to mention bank balance + cash in hand as on 31st march 2016.
other field you can marked as 0
On the 'No Accounts Case' PL page- under expenses your father could have claimed general expenses as telephone expenses, fuel expense, local conveyance expense., etc
now you can put 0
The query is resolved by other experts.
One of you wrote: "Instead of putting zeroes, I suggest that you should make reasonable estimate of your creditors, debtors and cash/bank balances and put them in Part B of the Balance Sheet." I don't know all this. Father is a retired engineering professional. Did some informal work. Got some money for it. There's no accounts. Mother gave a loan to father, ( personal loan), many years back, should it be entered here? This is ITR4. Mother's loan to father is a personal loan, it is not connected to business activity. She gave a loan of 226,000 rupees in maybe 2010 or 2009 I am not sure. Loan that mother gave to father there's no paperwork or formal document on it. Please advice. I am confused. What is the harm in putting zeros in Part B, Bal Sheet , 'No Accounts Case', in the absence of Information??
Sir,
Is this professional income or business income. In case it is business income and you have not maintain books of accounts than return need to be filed is ITR 4S.
In case of professional income is less than 1,50,000/- than put your bank balance figures and entered creditors and debtors as 0. it should do and defect can be removed
No Harm in doing that as per our view
Hi,
i would suggest dont put figures if there is no creditors and debtors.
But cash Balance means Bank balance+ cash balance, so you need to put those figures as, it is not possible to have zero balance i.e no cash in hand or at bank.
Thank you all very much for the answers. Is it possible to file ITR4S for AY 2016-17 at this point instead of re-fixing the defective ITR4 for AY 2016-17. His business income was 174,000 approx. for this AY 2016-17. If you feel it is possible and recommended at this point - then - please give suggestions on how to make ITR4S successful now. His other income includes: 1) Saving A/C interest. 2) FD interest 3) Post Office NSC maturity. No capital gain.
Dear Sir,
You can revise your return and changed it to 4S.
All this income can be included and revised return can be filed
hii,
Yes you can file just make sure whether income is from profession or business.
If it from business then net income is 8% per section 44ad
if it is profession then net income is 50% per section 44ada(there are many conditions are attached to it kindly go thru get)
No you need to first file 139(9) and then can revise the return.
Dear Sir,
Yeah you can file revised return in form ITR4S.
Please feel free to call/ revert in case of any doubts
Thanks and Regards
Abhishek Dugar
CA CS B.Com
It is advisable to make a reasonable estimate of your debtors, creditors, cash & bank balances in Part B of the Balance Sheet Section. However, there is no issue, if you put zeroes also if you don't have them or don't know them. The Part B of Profit and Loss Account will however need to be filled in with the figures for Gross Receipts, Gross Profit and Expenses.
You need to rectify the return . You will not be able to file ITR 4 now.
You need to rectify only the defects and there is no need to change the other figures. If the income in respect of SB, FDRs and NSCs are substantial, you may revise the return with these figures.
I suggest that you should take professional help in filing now.
Hello Sir,
Yes, ITR 4S can be filled now.
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
Hi
Yes, you can fill up ITR 4S so long as you do not have capital gains.
Trust this clarifies your query.
Regards
Keerthiga Padmanabhan
M.Com., CA, LLB
