01 March 2013
my frd has received cash of r.s 2lakhs frm another person, and same deposited into bank.. against this cash he issued cheque of r.s 2lakhs, how such transaction reflect in final a/c.he has business income & filing itr 4.. pls reply
01 March 2013
In that case, Your friend has to show the unsecured loan from the person Rs. 2 lakhs and on the other side the bank balance will increase by Rs. 2 lakhs, after that, when he has make the payment of Rs. 2 lakhs, then make the normal entry of payment. But as per Income Tax as per section 56(2)(vii), there is income from other sources because the amount exceeds Rs. 50000.
01 March 2013
1st entry:- Cash A/c Dr....................xxxx To person (Loan)..............xxxxx 2nd entry Bank A/c Dr...................xxxx To Cash.......................xxxx 3rd entry Person Dr.(Settlement of loan).......xxxxx To Bank..............................xxxxx
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