Income return

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

11 April 2013 dear sir, whether personal expenses should we taken while preparing balancesheet and p& l under income tax

CA. RICHI SAXENA

CA. RICHI SAXENA (Expert)
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12 April 2013 Deduction of Personal Expenses is not allowed while preparing the Profit & loss account for Income Tax Purposes.

Querist : Anonymous

Querist : Anonymous (Querist)

12 April 2013 madam, i have seen the return in which lic premium, rent of residential house paid is also debited while computing profit of bussiness of proprietor whether it is write or wrong?and why we add interest on loan in loan under balancesheet?

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Anand

Anand (Expert)
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12 April 2013 LIC premium is allowable u/s 80C as a deduction from total income and not as deduction from business income.
Rent of residential house can be claimed if part of house is being used for the purpose of business.
In these circumstances it is right. otherwise it is wrong. people may claim a lot of things in their return. what you have to see is if it has stood the test of scrutiny assessment.
Interest can be added to the loan if it is compounded and remains unpaid as on the date of balance sheet.

CA. RICHI SAXENA

CA. RICHI SAXENA (Expert)
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12 April 2013 Sh. Anand has correctly answered your second query and i am not a female dear.
Do not use Sir/Madam if you are not sure about it.

Querist : Anonymous

Querist : Anonymous (Querist)

12 April 2013 ok sir thank you

C A S.S.Agarwal, M.Com.,LL.B,

C A S.S.Agarwal, M.Com.,LL.B, (Expert)
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28 June 2013 The expert is correct. Preparation of P & L A/c and Balance Sheet is quite different then the Return. In B/S & P & L you have to take all income and expenses but in return only allowable deduction to be claimed.