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Residential flat

04 May 2020

When separate book of accounts are not maintained at that time while preparing balancesheet and profit and loss account to file ITR as a profession can I show Residential flat, Accumulated premium for LIC and shop owned by me on assets side of my professional balance sheet.

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6 Replies

(Guest)

Yes. You can prepare BS and Income Statements based on Information provided by the clients. But payment of premiums will be accounted in Income Statements as an expense.

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Mahesh Kapadia (194 Points)
Replied 04 May 2020

Lic premium is expenses or drawings?

Pawan Vemula (284 Points)
Replied 05 May 2020

Lic premium is a capital expence debited to capital account .......

Mahesh Kapadia (194 Points)
Replied 05 May 2020

Thanks

Eshita S Shah (Practicing CA ) (75 Points)
Replied 05 May 2020

Yes you can show the residential flat (in the Asset Side) However no depreciation shall be claimed as its not used for business purpose. LIC Premium (Drawings from Capital Account in the books and in ITR show it under the Schedule Deductions under Chapter VIA for the premium paid during the year) and Shop Owned (In the asset side) and if you are using the shop for your own profession then you can provide for depreciation and claim the same).