Preparation of financial statement for itr

ITR 618 views 10 replies

Dhrunil Bhatt

Chartered Accountant

232 Points Joined July 2014

Dear Experts,

One of the assessee indivual earned by way of salary and Saving bank interest income during AY 2016-17. So he filed ITR 1 for the same. In the mid of FY 2016-17, the employee retired from employment from the company, and started providing same professional service to the company as an external person.

Since the assessee now is earning income under the head Profit and Gain from Business and Profession, it has to file ITR 3.

My question is that, in order to file ITR 3, the assessee has to fill the Balance Sheet and Profit and Loss details for ITR 3. So how can the assessee prepare the same. How should the value of Vehicle which was earlier used for the personal purpose be determined to open up the balance sheet.

I would be grateful to you for your prompt reply.

Thanks and Regards,

Dhrunil Bhatt

Replies (10)

Dhirajlal Rambhia

SEO Sai Gr. Hosp.

208252 Points Joined July 2016

For some eligible businesses section 44AD is applicable........

Similarly some professions are eligible for presumptive assessment u/s. 44ADA......

Which can be filled in ITR 4..... No need of BS & Profit & Loss acc....

RAJA P M

"Do the Right Thing...!!!"

128116 Points Joined January 2015

Originally posted by : Dhirajlal Rambhia
	For some eligible businesses section 44AD is applicable........ Similarly some professions are eligible for presumptive assessment u/s. 44ADA...... Which can be filled in ITR 4..... No need of BS & Profit & Loss acc....

Dear Sir.,

In case i'm going to Bank Loan. He want BS and P&L...! What can I do...?

V.Raghunadh

Practicing Advocate and Corporate Consul

202 Points Joined October 2007

Bank officials can trust your filed IT Return aa it discloses your income and its sources. If they further insist any tax consultant may help you.

V.Raghunadh

Practicing Advocate and Corporate Consul

202 Points Joined October 2007

Bank officials can trust your filed IT Return aa it discloses your income and its sources. If they further insist any tax consultant may help you.

Dhrunil Bhatt

Chartered Accountant

232 Points Joined July 2014

Thank you sir for your reply. However the assessee wishes to prepare financial statements from this year and would like to maintain books of accounts regularly hence forth.

Kindly suggest on the above.

Thanks and Regards,

Dhrunil Bhatt

Chartered Accountant

232 Points Joined July 2014

Dear Ragjunath,

Thats exactly what I want.

Thanks and regards,

Dhrunil Bhatt

RAJA P M

"Do the Right Thing...!!!"

128116 Points Joined January 2015

@ Dhrunil.,
Just You can prepare your PandL.... PandL is enough....

Dhrunil Bhatt

Chartered Accountant

232 Points Joined July 2014

Dear Sir,

Thanks for your reply, however I am bit confused as to that if the assessee files return of income without filling the Balance sheet particulars, then the notice under section 139(9) would be received or not.

Thanks and Regards,

Dhrunil Bhatt

RAJA P M

"Do the Right Thing...!!!"

128116 Points Joined January 2015

I think,
I your case can't get the notice. Even if you select correctly profession code for your service category...
If you wrongly select any business code you ll be get notice....

V.Raghunadh

Practicing Advocate and Corporate Consul

202 Points Joined October 2007

Dear Dhrunil Bhatt, Sec 139(9) should not cause any tension as you will be filing return annexureless as it is now being prescribed as such. That means no need of attachments as you will be e filing.
Where a return is found to be defective ,the A.O may intimate it and gives 15 days time to rectify it . If the return is not rectified with in that time then it is treated ad invalid and as if not furnished.