Hello Friends,
I was preparing my own return. I have a query. This will be my first return.
I am showing approx amount of 75000 as opening capital on part of misc receipts over the years.
Furthur, Profit of 170000 for the year. cumulatively making my capital approx 250000.
On Right Hand Side of B/S, I am showing Debtors of Rs. 50000.
My query is How to adjust remaining 200000 Rupee. Showing Cash of this volume will definately put return under scrutiny in my opinion.
Please Help.
Thanks
Do the business you do liable for Audit u/s 44AB?
No., Not at all. Its my own return as a student. Just showing misc. tution fee and salary as accountant.
Then you need to provide following details regarding your tution profession:
Amount of the cash balance as on 31st Mar
Expenses during the year
Cash balance above includes bank balance also, if any,
Thanks for your Reply Vineet. Thats what I am asking. If I show Rs. 200000 as Cash in Nil Return for first year, will it draw attention from IT dept.
I do not think so as Cash and Bank Balance is to be shown in the one column. Rest depends on the Income Tax Authorities. Your return would look like as genuine return not something about which IT need to do scrutiny as long as you are paying taxes honestly.
Hi,
If you are earning Rs. 170,000 a year as income from Salary & Misc Receipts, in my opinion there is no need to add the entire amount to your capital. You can show a steady Drawings of say Rs. 8000/-- 10,000/- each month for personal expenses. Also you can show expenses incurred in connection with earning income. Also you can show the various Savings/Investments you have made over the years like FD, RD and take the difference amount to Cash/Bank balances. Only enter relevant portions in ITR. Keep a copy of you Balance Sheet/Statement of Affairs for Scrutiny in case.
Regards,
Viggi
Where do you invest or expense your net income Rs. 180739. show it in balance sheet.
CAclubindia
