Nob for web developer freelancer section 44ada in itr-4
Hello,
I am full time web developer working with foreign clients, and the payment deposited to my bank directly via PayPal and Upwork (online portal for freelancers), so basically I work as freelancer in web development.
So, based on reviews online at different websites, I had filled my IT return via ITR-4 this time under section 44ADA, presumptive taxation for professionals at 50% where I don't need to maintain audit records, and I have selected Nature of Business (NOB) = 0709-I.T. enabled service
s, BPO service providers
But yesterday. I received notice from IT department, mentioned the defective return communication u/s 139(9) for A.Y. 2017-18 wherein they provided error description as "The nature of business code in Sch NOB is not a profession, and the income disclosed under Section 44ADA income is more than zero. Hence the provisions of Section 44ADA is not applicable to the taxpayer."
Also, they have a column for probable resolution saying "The provisions of Section 44ADA is applicable only to Professionals with nature of business codes of 601 to 607.Taxpayer is requested to furnish correct Return Form type,i.e.ITR- 3 or ITR- 5 as applicable. If the Income has been disclosed under incorrect Section, the correct Section of the Schedule BP may be filled. If the Nature of Business code entered in the Return filed is not correct, the correct nature of business Code may be entered in the Sch NOB and the Corrected Return may be filed."
Can anyone please guide me what to do next and how can I respond to notice with updated details.
Thank a lot in advance.