In The ITR 4 FORM can we show our personal assets like agriculture land, personal loan, vehicle or Gold ornaments or shares etc. Coz in ITR 4 at balance sheet & profit & loss it mentioned that only those thing which are relatin to proprietory business shd be shown.....
pls advise these assets and liabilities shd be shown or not???
Debashis Mandal
(Business & Tax Consultancy)
(341 Points)
Replied 15 August 2009
Respected Friend Nilesh,
ITR 4 form is concerned about two way of assets & liability disclosures - In case where Accounts are under Tax Audit U/S 44AB of Income Tax Act 1961or where no Tax Audit is needed, for tax audit case, your Balance Sheet is exactly what your Auditor has signed, to be given & in case of no tax audit only your debtors, creditors, stocks & cash balance are to be given. so presentation of your personal assets & liabs depends on your drawn balance sheet & not on ITR 4.
Again, in case of prop. business, normal balance sheet is proprietors own personal balance sheet, so it needs to show his/her all valuable assets & liabs. which has got an intrinsic value, so naturally that is to be shown in personal balance sheet, so a common soln. is that 2 balance sheets are to be made one is business balance sheet & another is proprietors personal balance sheet where such business capital is to be shown as invested business asset & then such balance sheet is to be presented in ITR 4.
the idea shown is from my personal judgements, so if any mistake is found or any further improvement is added by any body then i personally will be greatful, for enhancing our KBA.
Thanks, Debashis, e mail ID - kstda @ rediffmail.com
Nt yet convinced coz many practcing CA are telling that there is no need to show your personal belongings like jewellery,car,agriculture land, personal loan as they are nt asked. Only information required to show is ur business related liab & assets as personal assets are not used in business.????/
Debashis Mandal
(Business & Tax Consultancy)
(341 Points)
Replied 15 August 2009
Respected Friend Nilesh,
The points which u are saynig that is the opinion of many Cas, ok, absolutely agreeing with u, it means there is no such specific rules which is making someone bound to disclose his/her all assets & liabs. in ITR 4, it is only your discreation that u are to show or not.
Aditya Maheshwari
(CA in Practice)
(35867 Points)
Replied 15 August 2009
What will happen in the case of on individual having proprietorship firm and also doing trading in F & O. How will the same be presented in the ITR - 4?
Debashis Mandal
(Business & Tax Consultancy)
(341 Points)
Replied 15 August 2009
Respected Friend Aditya Maheshwari,
I do not think that this question has got any relationship with the related earlier discurssions - presentation of assets & liabilities in ITR 4, but prop. trading & F&O trading is just two separate way of business which at a time any one can do, so a prop. can indulged into such 2 kinds of business at a time, Now presentation of such 2 business in ITR 4 depends on taxability of F&O transactions - If such F& O is a Investment in Nature then to be taxed under Capital Gains & if nature of trade then under Profits & Gains from Business & Profession & nature of business income is speculative in nature & the normal business will be taxed under PGBP as non speculative business income if so.
the idea shown is from my personal judgements, so if any mistake is found or any further improvement is added by any body then i personally will be greatful, for enhancing our KBA.
Thanks, Debashis, e mail ID - kstda @ rediffmail.com
pramod
(ca)
(22 Points)
Replied 16 August 2009
Respected Sir
The income fromof F&O transaction is always taxable under the head PGBP. In the case of any person having business income from different sources he is required to prepare a consolidated balance sheet of all the businesses and submit the same figures in ITR 4. Further , i will like to add here that the tax audit is also not for any one business of an assessee but the report is required to be given for all the businesses of the assessee taken as a whole. regards
Pramod Agrawal (agrawal.pramod.ca @ gmail.com)
CA Madhu Soodan Tapuriah
(Practising Chartered Accountant)
(156 Points)
Replied 16 August 2009
so far as compliance of income tax is concerned,we should furnish the information as required,neither more nor less.Obviously the department requires the infirmation pertaining to beusiness or profession and not the personal one.Simply no need to file personal information
Debashis Mandal
(Business & Tax Consultancy)
(341 Points)
Replied 16 August 2009
Respected Sir (Promodji Agarwal)
Sir u are informing us that F&O is always taxable under the head PGBP, then sir i am enclosing an article with this answer, pls. go through it & i am waiting for your clarification. Thanks Debashis
Debashis Mandal
(Business & Tax Consultancy)
(341 Points)
Replied 16 August 2009
Respected Friend Madhusoodan Tapuriah,
personal information in this case means personal agro prop, gold ornaments, shares etc all attracts Capital Gain Tax, so they are not so personal as your laptop, PC, Mobile phone, dresses etc. thus such disclosure is essential. Thanks Debashis
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