Tax questions on Income Tax

Defective return communication u/s 139(9) from Income Tax Dep.

Dear Experts, I have filed income tax for my mother as she is working as a teacher in private school and providing private tuition to students also under 44ADA and after more than 2 months i got communication from CPC u/s 139(9) that it is defective. I have used the code 607. Error code is 89- The provisions of Section 44ADA not applicable to the taxpayer. The nature of business code in Sch N...

Receive Notice u/s 139(9)of Income Tax Act, 1961.

I got email from Incometax department giving information as "The return of income filed by you for Assessment Year 2017-18 vide acknowledgement no. [deleted] dated [deleted], is considered defective u/s 139(9) of the Income Tax Act, 1961 as it is found to contain certain defects which has been annexed in. Error Code : 86 Error Description : As per Section 44AD(6) of the Income Tax Act, 1961, ...

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 ...

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...

Income tax for mobile developer earning only from app store

I have mobile app earning revenue from download of paid version and advertisement revenue in free version. The total receipt is bit over INR 10,00,000. There was no books of accounts maintained as there is no daily exchange of cash/money, only monthly payment from the App store are credited to a savings account. As the sales are indirect (Store deals with the customers), and considering the ser...

Notice for defect u/s139(9) error code 311

I have received a notice from department stating that there is defect in the ITR filed for AY16-17. I have filed ITR-4 being a tuition teacher (Nature of Business 0607-Professionals Others). Point number 53 of P&L (No account case) filled with Gross Receipt 282000 & Net Profit as 258824. Balance Sheet, point number 6d "Amount of cash balance" entered as 0 [with an understanding that all cash I ...

Tax Benefit by sub- letting a property to wife

Hello, Need your expert advice on tax saving planning on the "Rental Income" Scenario 1: Mr.X is the owner of the property and He is receiving a rental income of Rs.100 ( example) , and he wants to sublet this property to his spouse Ms.Y for Rs.50 ( example) , and the Mr.X and Ms.Y has a legal agreement of lease and sublet clause mentioned , hence now Ms.Y gets the Rental Income of Rs.50...

Forgot to claim relief u/s 89

I have a query regarding the claiming of relief u/s 89(1). The tax payer is a government employee who has received arrears of salary in FY2015-16 for the past years.While computing the tax liability for FY 2015-16, no relief was considered and the income tax for the FY2015-16 was filed by March 2017. There was no mention of the amount of relief u/s 89 in the tax return (Please note that the re...

Communication u/s 143(1)(a) for PAN AVJxxxxx4N for the A.Y. 2017-

I have received this intimation from the Income Tax Department Regarding my ITR Filed. I have computed my income exactly as per my Form 16. What to do now Please Guide. Dear Tax payer, Please find attached the communication on proposed adjustment u/s 143(1)(a) from the Income Tax Department, Centralized Processing Center (CPC) with respect to the return of income filed by you for the PAN ...

Clarification on Section 196A in The Income- Tax Act, 1995

I am NRI and made MF investment from my NRE (External) account. So I am exempted from Income tax as per sub-section (2) of the above section 196A. Please confirm. Please clarify on sub-section (2) for the words "......no deduction of tax shall be made from any income payable in respect of units of the Unit Trust of India to a non- resident Indian or a non- resident Hindu undivided family, wh...

Placing spouse as a salaried employee

I am a technical consultant providing scientific consultancy services to different interested organizations. Nature of my work is mostly home-based with travel to client project locations. Till now I paid service tax and now will be paying GST for my services. The expenses that are incurred for business purpose, like travel and communication, are deducted from my total income. This is as per th...

tax on settlement received for EL & Superannuation resignation

Dear sir/Madam, I resigned my previous company after 5.4 years of service & joined a new company. I have received following settlement from previous company 1. Rs 1,02,000/- for superannuation withdrawal after deducting 10% of tax at source (1/3 rd of amount). 2. Rs. 1,30,000/- for EL encashment after deducting 10% of tax at source. 3. Rs. 97,000/- of gratuity amount (Tax is not deducted...

Tax as travelling freelancer

Hello. I'm working as a freelancer (software), and I'm constantly travelling, not staying in one place more than 3 months, thus I can't claim tax residency basically anywhere. I'm originally from Lithuania, and I've been freelancing for less than a year, as taxes in Lithuania are really high, I'm looking for options in opening an offshore bank account or/and offshore company with 0%-1% corporat...

Tds filling nri

Good Morning. Warm greetings from ARUL.R I am a NRI. From Income tax one mail come below attached. Dear Taxpayer, Greetings from Income-Tax Department! It is seen from your 26AS statement that there are TDS deductions on payments received by you during F.Y. 2016-17. Therefore, it is advised that you may ascertain your tax liability for AY 2017-18 and file your Income Tax Return...

Communication of proposed adjustment u/s 143(1)(a) of Income Tax

Dear Sir/Madam, Subject: Communication of proposed adjustment u/s 143(1)(a) of Income Tax Act, 1961. The return for PAN AYBXXXXXXD, Assessment Year 2017-18 E-filing- Acknowledgement number 833XXXXXXXX90617 Dated 29-JUN-17 {AY, Acknowledgement Number and Date are obtained from the ITR} contains the errors/incorrect claims/ inconsistencies which attract adjustment(s), as specified u/s. 143(...

Showing carry forward short term capital loss in ITR-2 sec CFL

I have a very simple question with regard to showing carry forward loss in ITR2. Below is the scenario. 1 - FY2015-16, I am having short term capital loss of 3,00,000 Rs. In this year, I do not have any short term capital gain hence, I had to carry forward it by ITR2. And I have no question here. 2 - FY2016-17, I am having short term capital gain of 1,00,000 Rs. I can set off this against...

Redemption/ Switch of Mutual Funds and Section 44ADA

Dear Sirs / Madam I am planning to file my returns using Section 44ADA (presumptive basis) as I am data processing freelancer and do Customer oriented /IT related jobs for an overseas client. However, in an effort to streamline my Mutual Fund portfolio like converting to Direct plans, switch from non performing to performing funds, I have had a revamp. I have switched certain funds to oth...

Mismatch in Form 16A and Form 26AS

Form 16A from the bank shows, 1325 TDS deducted for interest amount 13248. Where as Form 26AS shows, 2006 TDS deposited for interest amount 17661. Also, the from the interest certificate from bank, the total interest amount(on FDs) is shown as 20058. In Form 26AS, for a transaction of interest amount 1694, the TDS deposited is shown as 410. But it seems to be for (1694 + 2394). Here, amount ...

IT dep asked through mail to report income

I have received an email from IT dep. saying.. It is seen from your 26AS statement that there are TDS deductions on payments received by you during F.Y. 2016-17. Therefore, it is advised that you may ascertain your tax liability for AY 2017-18 and file your Income Tax Return (ITR) by due date. If your case in not auditable, your due date for filing of your Income Tax Return will be 31s...

Section 44ADA for 50% Income

Hello, I work as a translator cum content writer and have income of around 22 Lakhs. I heard on TV Taxguru program that people with my profile can claim 50% provisional income under section 44ADA, and pay taxes on only 50% of the remaining income by filling the return form no. 3. My question is that what should I enter into following 3 fields in ITR 3 form "Profit and Loss" sheet column 53 ...