Income tax

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lucky (Querist)
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25 February 2011 what r the procedure to open propertorship business can i have file ITR-4,without having current account and any document required to file propetership first ITR

CA PARAS BAFNA

CA PARAS BAFNA (Expert)
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25 February 2011 Current a/c is opened to facilitate the business payments as the bankers are generally not permitting more than a certain number of transaction in a month.

Further in case of business, expenditure payment exceeding Rs 20000/ is required to be made by an account payee cheque only.

So in case, a business man is only having cash transactions and level of business is small then there is no necessity to open a current a/c.

By opening a current bank a/c the business man gets facility as evidence as regards payment made or received.

You will require the financial statements i.e. Balance Sheet, Trading & P& L A/c etc while filing the Return in ITR -4.

PINKESH JAIN

PINKESH JAIN (Expert)
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25 February 2011 There is no procedure as such. You have to just register with the local authority i.e. mumnicipality for Shop and Establishment Certificate and has to open a Current Account with Bank on the name of the firm.
The current account is needed for the bank details in the ITR 4.
No other Documents as such are required specially for proprietorship firm.

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