Notice u/s 139 (9) error 86
I have received a notice from IT department for having filed defective return for AY 2017-18. The notice says: Error Code 86 As per Section 44AD(6) of the Income Tax Act, 1961, the provisions of Sec.44AD are not applicable to – (1) persons carrying on professions that are referred to in Sec.44AA(1), (2) persons earning income in the nature of commission or brokerage, and (3) persons carrying on any agency business.As seen from the return of income filed, the nature of business code mentioned is 00301 General commission Agents, which falls in the categories mentioned above. Hence, the provisions of Sec.44AD are not applicable, in your case.
Possible resolution: As the provisions of Section 44AD are not applicable, in your case, the claim of computing profits and gains of business on presumptive basis, under this special provision is not allowable. Hence, the above defect has to be corrected by way of computing the profits and gains of business under the normal provisions and not under Sec.44AD and offering the same.
I filled ITR4, I am a Contractor so I put 0505-Contractors-Others & 0301-General Commission Agents And I got Defective return Error 86 due to 301-General commission Agents. Now I want to remove 301-General commission Agents as I have no Income under this nature, actually I left commission work 3years back after that to till date I have no income from this and I have no income this year also not show any amount in Professional Income column in ITR4. As I have file ITR4 for Assmnt year 17-18 and also shows income of 6% of gross receipt as digital transaction & 8% on cash receipts income. NOW I could not able to change to itr3 as if I file itr3 than I have to do audit of business. Please help? and suggest what should I do.