Demand as per intimation u/s 143 (1)

This query is : Resolved

Tax Payer (Querist)
Follow

17 May 2012 I received an order u/s 143 (1)of the Income Tax Act, 1961 demanding an amount of Rs.760/- for mistake in preparation of e return on my side. I have paid the amount of Rs.760/- as tax. Now what shall be done by me? Whether I should intimate this payment by making a revised return or rectification or any letter to be sent to the CPC in this regard or any other method available?

Querist : Anonymous

Querist : Anonymous (Querist)

17 May 2012 hi,
pls help me in preparing cash flow , i forget the format

U S Sharma

U S Sharma (Expert)
Follow

17 May 2012 if you have paid the demand, then you have to relax and sleep in peace, nothing is to be done next by yourself.

just send a xerox copy of challan paid with a covering letter to cpc for their intimation and records update,

Upgrade to CAclubindia Pro. Subscribe Now!

Aditya Maheshwari

Aditya Maheshwari (Expert)
Follow

17 May 2012 I think you should file for rectification of intimation also as in one of my clients case tax was paid and challan was sent. But the refund of next year was adjusted against last years demand. SO i think you should file for rectification.

Asha Kanta Sharma online

Asha Kanta Sharma

(Expert)
Follow

21 July 2024 Preparing a cash flow statement involves summarizing the cash inflows and outflows of a business over a specific period. The format typically follows the indirect method, which starts with the net income and adjusts for non-cash items and changes in working capital. Here’s a basic format and guidance to help you prepare a cash flow statement:

### Cash Flow Statement Format (Indirect Method)

1. **Operating Activities**
- Net Income from the Income Statement
- Adjustments for non-cash items (add back depreciation, amortization, etc.)
- Changes in working capital:
- Increase/decrease in accounts receivable
- Increase/decrease in inventories
- Increase/decrease in accounts payable
- Increase/decrease in other current assets/liabilities

Net Cash Flow from Operating Activities

2. **Investing Activities**
- Cash flows from the purchase/sale of fixed assets (property, plant, equipment)
- Cash flows from investments (purchase/sale of securities, loans made/received)

Net Cash Flow from Investing Activities

3. **Financing Activities**
- Cash flows from issuing/repurchasing equity (common stock, preferred stock)
- Cash flows from borrowing/repaying loans (issuance/repayment of bonds, notes payable)

Net Cash Flow from Financing Activities

4. **Net Increase/Decrease in Cash**
- Sum of the cash flows from operating, investing, and financing activities

5. **Beginning Cash Balance**
- Cash balance at the beginning of the period

6. **Ending Cash Balance**
- Cash balance at the end of the period (should reconcile with the sum of net increase/decrease in cash and beginning cash balance)

### Steps to Prepare the Cash Flow Statement

1. **Gather Financial Statements**: Obtain the income statement and balance sheet for the period for which you are preparing the cash flow statement.

2. **Adjust Net Income**: Start with the net income from the income statement and adjust for non-cash items such as depreciation, amortization, gains/losses on sales of assets, etc.

3. **Calculate Changes in Working Capital**: Review changes in working capital accounts (receivables, inventory, payables, etc.) from the balance sheet. Calculate the cash flows associated with these changes.

4. **Calculate Cash Flows from Investing and Financing Activities**: Identify cash flows related to investments in fixed assets, purchases/sales of investments, and financing activities like issuance or repayment of debt and equity.

5. **Summarize Cash Flows**: Classify and summarize cash flows into operating, investing, and financing activities using the format outlined above.

6. **Prepare the Statement**: Organize the cash flow statement with the sections for operating, investing, and financing activities. Ensure that the beginning and ending cash balances reconcile with the actual cash balances reported in the balance sheet.

### Example of Cash Flow Statement

```
ABC Company
Cash Flow Statement
For the Year Ended December 31, 2023
(in Rs.)

Operating Activities:
Net Income XXXX
Adjustments for:
Depreciation and Amortization XXXX
Changes in Working Capital:
Increase in Accounts Receivable XXXX
Decrease in Inventories XXXX
Increase in Accounts Payable XXXX
Increase in Other Current Liabilities XXXX
Net Cash Flow from Operating Activities XXXX

Investing Activities:
Purchase of Property, Plant, and Equipment (XXXX)
Sale of Investments XXXX
Net Cash Flow from Investing Activities XXXX

Financing Activities:
Issuance of Common Stock XXXX
Repayment of Long-term Debt (XXXX)
Net Cash Flow from Financing Activities XXXX

Net Increase in Cash XXXX

Beginning Cash Balance XXXX

Ending Cash Balance XXXX
```

### Additional Tips

- Ensure all cash flows are properly classified into operating, investing, and financing activities.
- Verify that the cash flow statement reconciles with the balances reported in the balance sheet for cash and cash equivalents.
- Use software tools or templates available in accounting software to streamline the preparation process and ensure accuracy.

By following this format and guidance, you can effectively prepare a cash flow statement for your business or organization. Adjustments may be necessary based on specific industry practices or regulatory requirements applicable to your jurisdiction.