18 March 2011
Pl use ITR-4. Income from proprietary business and remuneration as well as interest on capital from partnership firm will be assessed under the head"income from business/profession". However, share of income from partnership firm is exempted under section 10(2A) of the Income tax Act,1961.
18 March 2011
Thank You very much for the answer! I have entered partnership income in Schedule BP (interest, remuneration & share of profit) & have also entered share of profit in schedule EI, also i have entered proprietorship income, expenses & capital in PartA-PL & in Part A-BS. Now, the Aggregate Income in Part B-TTI does not reflect the proprietorship net income. Why? Is proprietorship income not assessable to tax?
18 March 2011
Profit from proprietorship firm should come automatically in point A1 of Schedule BP. if it is not coming then pl check whether macros are enabled.
18 March 2011
Sorry Sir! My macros are enabled. The field A1 of schedule BP is for manual entry and therefore profit from proprietorship firm cannot come automatically. This means that i have to enter my total Business Income i.e. (1)Income from Partnership firm (Interest, Remuneration & Profit Share) + (2) Income from proprietorship firm manually in this field. Is this correct sir?
Also, the income from partnership firm entered as above should exclude "partnership profit share" as the figure has to be entered in schedule EI. Exempted Incomes do not get automatically deducted from Aggregate Income in Part B-TI-TTI. Correct Sir?
18 March 2011
It may not be coming automatically in program you are using. In A1 of schedule BP you should fill value of item 43 in PART A -P&L which is net profit of proprietorship business. Income from salary & interest from partnership firm should be filled in item A23 of Schedule BP. Share of profit from partnership firm should be filled in Schedule EI Item 5.
CAclubindia
