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ITR 3 Query

02 October 2019

I AM A PARTNER IN PARTNERSHIP FIRM WHICH IS SUBJECT TO TAX AUDIT. I ALSO HAVE BUSINESS UNDER SEC 44AD IN MY NAME..WHEN I FILE ITR 3 FOR MYSELF THEN I HAVE TO GIVE DETAIL OF MY PERSONAL BALANCE SHEET CASH IN HAND, CASH AT BANK ? OR MY PARTNERSHIP FIRM DETAIL? PLEASE CLARIFY

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7 Replies

Kapadia Pravin (17254 Points)
Replied 02 October 2019

In ITR 3 you have to give Details of your proprietory business under 44AD

No books of account required since you are under 44AD.

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SUMIT GOYAL (43 Points)
Replied 02 October 2019

PLEASE ALSO LET ME KNOW WHERE THE CLOSING BALANCE OF MY CAPITAL ACCOUNT IN THE PARTNERSHIP FIRM NEED TO BE REPORTED IN ITR 3 ?

Kapadia Pravin (17254 Points)
Replied 02 October 2019

To be reported under schedule IF of ITR 3
And if you received salary/interest from Partnership Firm, you have to show under business income

RAJA P M ("Do the Right Thing...!!!") (127962 Points)
Replied 03 October 2019

( PLEASE ALSO LET ME KNOW WHERE THE CLOSING BALANCE OF MY CAPITAL ACCOUNT IN THE PARTNERSHIP FIRM NEED TO BE REPORTED IN ITR 3 ? )

@ MR. SUMIT GOYAL.,

Yes... Report the Partnership details in "SCHEDULE IF".

Please kindly go to refer the said schedule...

SUMIT GOYAL (43 Points)
Replied 03 October 2019

IF A PARTNERSHIP FIRM HAVING 2 PARTNERS PAID ADVANCE TAX IN AY 19-20 RS 50,000 AND HAVING TAX LIABILITY IN AY 19-20 RS 60,000 THEN HOW MUCH AMOUNT TO BE DEBITED TO INDIVIDUAL PARTNERS CAPITAL ACCOUNT IN TERM OF TAX PAID..IN WHICH YEAR IT WILL BE DEBITED TO PARTNER CAPITAL ACCOUNT?

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Kapadia Pravin (17254 Points)
Replied 07 October 2019

50000/- advance tax and 10000/- SA tax
To be debited to partner's capital account
----- in the FY that is date on which tax payment is actually method

Suresh Thiyagarajan (Student) (3986 Points)
Replied 09 October 2019

1. If the firm pays advance tax on behalf of partners (if that’s what you are referring to) then it is advisable to debit the amount to respective Current account of the partners.
2. There is no distinction to advance tax and self-assessment tax as far as the firm pays the amount on behalf of partners. Once the amount is paid the amount, debit should be given to the partner's current account (preferably) and credit should have been the bank account of the firm.
3. It is advisable to maintain proper Current accounts for each partner to track the transactions between partners as individual and firm. Only items such as interest on capital, drawings, and profit/ loss will be given effect to the partner's capital account.
Please correct me if the above solution has an alternative view.