08 January 2009
1.I invested Rs.2,50,000/-in the equity shares of a Private limited company in the year 2005-06 from my savings from salary income and other savings. 2.Now that private limited company is received the Scrutiny order from the Income tax department for the years 2005-06 on wards. 3.Now that company is asking me to produce my personal balance sheets and Profit&Loss account explaining the source of income for that 2,50,000/- 4.since no need to maintain the books of accounts.I have not maintained any books for the years 2005-06 onwards. 5.for the FY2007-08 only i filed my first income tax return. 6.can any one please help me what i need to tell to that private company.they are asking me to produce the Balance sheet for the year 2005-06. 7.I am salaried employee.I don't understand why i need to maintain Books of account like balance sheet and P&L.
08 January 2009
Being a salaried employee, you may not maintain P & L Account and Balance Sheet
You, however, have a statutory responsibility to explain details of sources of your investment to the satisfaction of the Income Tax Department, whether you filed returns of income or not till making investment.
If you do not submit satisfactory explanation, ACB also will be after you, if you are in government service
08 January 2009
1.If i get notice from the department then i am answerable to the department. 2.here the company where i invested got the scrutiny order 3.company is asking me to produce the balance sheet to them. 3.why should i explain my source of income to the company. 4.if department asks me yes i need to explain. 5.whether i need to give Balance to the company or not required?
08 January 2009
I can prepare and keep for my future reference.now the copmany is demanding.That is where i got irritated.If I am not responsible to give that to company on what basis they are demanding me
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