Int income

This query is : Resolved

jinesh (Querist)
Follow

28 March 2013 i have a client whose having retirment Income of Rs.20 lacs and the same is invested with construction party. at every end of the Year Construction company send a ledger to me In this way: 1.4.2010 Opening Bal: 20 lacs ( By check) 31.3.2011
Interest 1 lacs( journal)
Now For A.Y. 11-12 I have shown this interest under Income from Other sources while filing Tax return. whether i have done correct by showing it as an interest in Income tax Return? const.co. has just made JV for this transaction party and party has not received any Interest in F.Y. 2010-11. i have done correct or not for this transaction.
1.4.2011 Opening bal: 21 lacs
15.04.2012 Interest 1.5 Lacs( Journal) in 25.3.2012 Cheque is also made Rs. 22.50 Lacs and close the account Now amount received 22.50 Lacs. so In this A.Y. 12-13 what is amount of Interest to be shown in the Income tax return? You Know earlier transaction is made through JV. Please explain.

MEHUL SHAH

MEHUL SHAH (Expert)
Follow

30 March 2013 Yes the solution is correct. The const company has claimed expenditure in his profit and loss account even if it has done through JV and you have shown the same amount as income. So it is perfectly alright.

However, Section 145 gives you an option to show Income from other sources on "Cash basis" so that could also have been an option to defer payment of tax if you fall under higher slab rate but then it has to be applied uniformly for all other source income and over period of years.

Regards
CA Mehul Shah
9723459572