• 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

Hi,

In order to reply to your question appropriately we will have to review your return of income. It seems that you have filed your return incorrectly.

We can assist you in reviewing your ITR and then providing the way forward.

Please feel free to call/ revert in case you need more clarity

Thanks and regards

Abhishek Dugar

CA CS B.Com

Abhishek Dugar
CA, Mumbai
3576 Answers
183 Consultations

4.8 on 5.0

Hi

As per the facts given by you, its not clear as to what the error is. It would be required to review the documents first. Then only any course of action can be decided.

Please note that response to this notice and the accompanying revised return has to be filed within 15 days of this notice, failing which your initial return shall be considered invalid.

Lakshita Bhandari
CA, Mumbai
5687 Answers
909 Consultations

5.0 on 5.0

Hello,

It is preferable if you file the entire profit n loss and claim only the legitimate business expenses if any.

Trust this clarifies your query.

Feel free to call / get back in case of further clarifications.

Thanking You.

Regards,

Rohit R Sharma

BCOM, FCA, LLB, CERT. FAFP

Rohit R Sharma
CA, Mumbai
2104 Answers
95 Consultations

5.0 on 5.0

Hi Pallav,

Since this would require review of documents, it is advised that you should contact one of us on one to one basis for giving a response to this notice and revision of return.

Lakshita Bhandari
CA, Mumbai
5687 Answers
909 Consultations

5.0 on 5.0

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