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ITR

RAJ KUMAR (FINANCE MANAGER) (1393 Points)

28 November 2010

HELLO FRIENDS, IF MY CLIENT WANTS TO FILL ITR OF BOUTIQUE INCOME SHOWING THE INCOME OF RS, 1,90,000 BUT SHE DOES NOT MAINTAIN ANY ACCOUNTS .

NOW IT IS GOOD FOR ME TO MAKE A SMALL BALANCE SHEET OF HER AND FILE THE RETURN IN ACCOUNT CASE OF I FILE THE RETURN IN NO ACCOUNT CASE SHOWING THE BUSINESS INCOME LESS THAN RS. 120000 AND MISC. INCOME OF RS. 70000.

PLS. HELP ME. I AM IN GREAT NEED.

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7 Replies

Devendra (Chartered Accountant) (4775 Points)
Replied 28 November 2010

AS THE INCOME IS NOT ABOVE RS. 120000, YOU CAN SHOW THE BUSINESS INCOME AS NO ACCOUNT CASE. YOU NEED TO FILE ITR - 4 FOR THIS (ASSUMING YOUR CLIENT IS RUNNING A PROPRIETARY BUSINESS).

FOLLOWING ARE FIGURES REQUIRED FOR NO ACCOUNT CASE :-

BALANCE SHEET

1) AMT. OF SUNDRY DEBTORS

2) AMT. OF SUNDRY CREDITORS

3) AMT. OF STOCK IN TRADE

4) AMT. OF CASH BALANCE

PROFIT AND LOSS A/C

1) GROSS RECEIPTS

2) GROSS PROFIT

3) NET PROFIT

4) EXPENSES

IF POSSIBLE, MAKE A P&L A/C AND B/S, FOR YOUR REFERENCE FOR THE NEXT ASSESSMENT YEAR.

REGARDS,

DEVENDRA P KULKARNI

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RAJ KUMAR (FINANCE MANAGER) (1393 Points)
Replied 28 November 2010

BUT IF I PREPARE THE BALANCE SHEET AND SHOWS THE BUSINESS PROFITS OF RS, 190,000 THEN IT IS OK.

PLS. REPLY IT.

@*CS Siddharth Bumb. * (B.Com, CA Final, CS ) (5270 Points)
Replied 28 November 2010

Mr devendra is right........in case no accounts 4 figures should be disclosed as he stated correctly....

CA Mudit Agarwal PGDFM,MCP,IFR (Dy. Manager (Taxation)) (289 Points)
Replied 28 November 2010

Mr Devendra is right...

If u r not covered u/s 44AA and 44AB, accounts books are not required.

Only the four figures as said by Mr Devendra is to be disclosed in the ITR.

arjun s (CA Final) (299 Points)
Replied 28 November 2010

when books of accounts are not maintained u should not enter the figures on assumption

u have to collect the details of creditors, debtors, stock-in-trade and cash balance

gross profit, net profit, gross receipts and expenses

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RAJ KUMAR (FINANCE MANAGER) (1393 Points)
Replied 29 November 2010

BUT THE CLIENT WANTS THE RETURN OF RS. 1,90,000 NOW WHAT CAN I DO

I HAVE ONLY TWO OPTIONS EITHER MAKE A BALANCE SHEET AND FILE THE RETURN OR I SHOW THE BUSINESS INCOME LESS THAN RS. 1,20,000 AND SHOWS THE MISC. INCOME.

WHICH CAN I DO?

PLS. HELP ME.