Become Govt. Certified GST Practitioner in just 58 hrs. Register Now!

Property dealer business

Gautam (Employee) (191 Points)

23 March 2015

I have a client small business of property dealing income on account of cash commission & some sort of income on investment in property by some share say 10%. Total inflow & outflow r in cash. He want to take home loan in the near future so he said to me to File ITR for the first tym with balance sheet & p&l. How can i proceed pls suggest.

Reply
Follow
Share

10 Replies

Vineet Goyal (Assistant Manager - Finance & Accounts) (702 Points)
Replied 23 March 2015

I do not think property dealer is liable for tax audit. In that case, you do not need profit and loss a/c and balance sheet to file ITR. In this case, you need to provide only the following information in ITR:

For Profit and loss account

Gross receipts

Gross profit

Expenses

Net profit

For Balance Sheet

Amount of total sundry debtors

Amount of total sundry creditor

Amount of total stock in trade

Amount of the cash balance

Upgrade to CAclubindia Pro. Subscribe Now!

Gautam (Employee) (191 Points)
Replied 23 March 2015

What amount i have to show for all the details above?

Gautam (Employee) (191 Points)
Replied 23 March 2015

Actually he have no documentation of anything so I have to prepare data on arbitrary basis

Gautam (Employee) (191 Points)
Replied 23 March 2015

I just want to ask can i show plot or land in balance sheet which he acquired on his name.

Vineet Goyal (Assistant Manager - Finance & Accounts) (702 Points)
Replied 23 March 2015

You cannot show these details unless you maintain proper books of account.

Upgrade to CAclubindia Pro. Subscribe Now!

Gautam (Employee) (191 Points)
Replied 23 March 2015

Yes that's why am asking how can i proceed?

Gautam (Employee) (191 Points)
Replied 23 March 2015

All the transactions are in cash is there any problem for cash transactions. He have details of all the commission received on a register that he maintained. He dont raise any invoice just received cash on account of commission and for the sake of account he wrote all the details on register.

Vineet Goyal (Assistant Manager - Finance & Accounts) (702 Points)
Replied 23 March 2015

As mentioned in the previous post, only provide following details. If you do not have these details, I do not think you can file ITR. Wait for another expert to comment.

For Profit and loss account

Gross receipts

Gross profit

Expenses

Net profit

For Balance Sheet

Amount of total sundry debtors

Amount of total sundry creditor

Amount of total stock in trade

Amount of the cash balance

Gautam (Employee) (191 Points)
Replied 23 March 2015

Stock in trade for property dealer? Investment in plot land house etc. other than own house in which he is living. Creditor for property dealer??

hitesh (article) (30 Points)
Replied 24 March 2015

you wil have to prepare the accounts for such figures as mentioned by vineet goyal.
please refer a balance sheet & profit & loss of same type of concern and way up your liabilities & assets.
Yep all property will be recognised in his name even if 10%, u need to recognise 10% of property amount.