Notice u/s 139(9) with error code 181
Dear Experts,
I am a salaried Software Professional. Today, I have received a notice from IT department u/s 139(9). The reason mentioned is error code 181:
"a) The Gross Receipts is not mentioned in the Profit & Loss A/c, OR b) The profit shown is less than 50% of the gross receipts as prescribed u/s 44ADA but has not mentioned the maintenance of the books of accounts and audit report u/s 44 AB in part A-General and the total income exceeds the maximum amount not chargeable to income tax."
For the last financial year (2016-17), I had the following sources of income:
1. Salary
2. Income for 2 houses (rental income)
3. Short Term Capital Gains (equity and MF)
4. Professional Income (One of our client paid me directly instead of paying to my employer. Total Professional income was 1.75 lakhs)
5. Other Sources (interest Income)
I had filled ITR 3 for current assessment year and since professional income was a small amount, I took the benefit of section 44ADA so that I don't have to furnish/maintain any books. So while filling ITR 3, under P&L section, I had mentioned my Gross Receipts (1.75 lakhs) in 53(ii)a and Gross Profits (87,500) in 53(ii)b. On Schedule BP, I had mentions 87,500 under section 44ADA (point 35ii). Because of this, my net Business income came out to be 87,500 which 50% of my gross receipts (1.75 lakhs). Under Nature of Business, I had filled 709-IT Enabled Services, BPO Service Providers. Kindly advise what changes I have to make in my ITR 3 to get it processed.
Thanks in advance!
Asked 6 years ago in Income Tax
I had filled ITR3 using java utility. I have the xml which was used to file the return and also pdf of the whole ITR. As far as I understand from the error description, Gross Receipts are not mentioned in the P&L schedule. But I have mentioned it under "NO ACCOUNT CASE" section of P&L Schedule.
Kindly let me know what documents I need to send and how/where do I send them.
Thanks,
Pallav Jain
Asked 6 years ago