15 January 2011
Respected sir, i want to know that what will be the accounting treatment in books and how it will be filled in itr-4 form. the details of the case are:- The assesse is filling the itr-4 for income from business & profession. but this year he had started paying the instalments(60000 each semi yearly) for obtaining the flat in the city. the flat will be on his name after 3-4 years. he made the payment from the firm,s bank a/c. i repeat my question is that how it will be treated in books and in itr-4.
15 January 2011
Assuming that the assessee is a proprietor, he should record the amount by Debiting Advance for House A/c, which can be shown in the ITR form PartA- BS, Item No 3(b) (i).
16 January 2011
Thanks for the guidance sir. But i have some doubts like:- 1.when it will be transferred to fixed assets than at what value it will be shown market price or amount paid for obtaining the house and is any special treatment required at that time in ITR's. 2.will it be appreciated and depriciated under fixed assets. 3.why the amount paid cannot be shown as drawings as business and businessman are seperate and house will be on name of the propreitor
16 January 2011
Depreciation is claimed on the assets which are used for the purpose of business. * In books of account we never consider Market Price in case of fixed assets. So it will be transferred to Fixed Asset heading on the basis of actual amount recorded in the books. * This question would be answered by yourself. What we can say ,is Prop. And Individual are the same assessees.
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