Property dealer business

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Gautam

Employee

191 Points Joined March 2009

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.

Replies (10)

Vineet Goyal

Assistant Manager - Finance & Accounts

702 Points Joined January 2011

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

Gautam

Employee

191 Points Joined March 2009

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

Gautam

Employee

191 Points Joined March 2009

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

Gautam

Employee

191 Points Joined March 2009

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 Joined January 2011

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

Gautam

Employee

191 Points Joined March 2009

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

Gautam

Employee

191 Points Joined March 2009

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 Joined January 2011

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 Joined March 2009

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 Joined June 2014

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.