Manu (Mr) (132 Points)
13 June 2019Will there be a problem if i had more balance in bank at the end of financial year than income earned in previous year?
For example
gross turnover E1(a) = 400000
balance in bank E21 = 700000
Dhirajlal Rambhia
(SEO Sai Gr. Hosp.)
(177713 Points)
Replied 13 June 2019
Unless capital introduced by partners/proprietor in firm, it is not possible. ITD may raise a query.
Dhirajlal Rambhia
(SEO Sai Gr. Hosp.)
(177713 Points)
Replied 13 June 2019
Unless capital introduced by partners/proprietor in firm, or loans or payable to creditors etc... it is not possible. ITD may raise a query.
Manu
(Mr)
(132 Points)
Replied 13 June 2019
Thanks for your reply.
The balance was due to FD (fixed deposit) that matured. I did not renew the FD so there was some excess balance.
Should i leave the "balance in bank E21" column empty to avoid any problem? it is not mandatory to fill that column.
Dhirajlal Rambhia
(SEO Sai Gr. Hosp.)
(177713 Points)
Replied 14 June 2019
Better to fill the column, as its explainable.
Manu
(Mr)
(132 Points)
Replied 14 June 2019
Ok.
In balance in banks (E21) column do i have to give the total income earned or whatever balance was there as on 31 march?
Also you mentioned ITD may raise a query, is there any reason why ITD will raise a query?
Dhirajlal Rambhia
(SEO Sai Gr. Hosp.)
(177713 Points)
Replied 15 June 2019
Balance as on 31st March of relevant year.
High value transactions or bank balances are generally caught under ITC radar.
Ajay Gupta
(PRACTICING CHARTERED ACCOUNTANT)
(196 Points)
Replied 19 June 2019
Dear Manu - In normal scenario bank balance would be less than or equal to turnover. There must be some abnormal transactions, which would have increased the bank balance.
Please possess appropriate documentation for these transactions and do ensure appropriate treatment in ITR. If these two things are followed by heart, then we can respond to any sort of query from the IT department.
sasi Tamil
(4 Points)
Replied 03 July 2019
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