09 December 2010
If an assessee files return 1st time then how will he create his capital A/c ? Will he take into account all his below taxable income earned after becoming major till his 1st filing of return as opening balance If Yes then what will come in the asset side ?
10 December 2010
You have to show the assets which belongs to the assessee in Assets Side. If he has not acquired any asset out of income earned then either he had Withdrawn the Income earned for his personal expenses or he may have Cash in Hand upto a reasonable extent.
You have to also consider those assets which have been acquired by or for him during his minority.
The Total Assets will form his CapitalA/c on the Liability side.
10 December 2010
You have to built up capital for the past five years before filing return of income. While built up capital all incomes belongs to such assessment year should be below the taxable limit. In the asset side fixed assets and cash will come. if any advance is given then such amount will come.
11 December 2010
You can show estimated past savings as opening balance of capital account and in the asset side all assets such as cash, bank, investments etc. will come.
CAclubindia
