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Cash disclosure in ITR 3 u/s 44AD

Ashiwini Ballodia (Managing Partner at TAXounting) (8727 Points)

02 July 2017

If a person (Proprietorship) doesn't maintains his books of accounts for his bussiness and if he has opt for section 44AD.
Than which cash to disclose in ITR:
1) Cash held at bussiness or
2) Cash held at bussiness & in personal file

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6 Replies

Dhirajlal Rambhia (SEO Sai Gr. Hosp.) (160663 Points)
Replied 02 July 2017

Its 'Financial Particulars of the Business. ......... so cash at hand of the firm.

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Ashiwini Ballodia (Managing Partner at TAXounting) (8727 Points)
Replied 02 July 2017

But some people say that cash of both proprietorship & personal file to be shown because we are filling return in name of individual and not in the name of bussiness

Dhirajlal Rambhia (SEO Sai Gr. Hosp.) (160663 Points)
Replied 02 July 2017

Yes, I agree........ and that should be for safer side.......

But refer the head,...... PART A : BS........... BALANCE SHEET AS ON 31ST DAY OF MARCH, 2017 OF THE PROPRIETORY BUSINESS OR PROFESSION...............

So, for those who maintain accounts of the firm inclusive of personal/capital accounts.... the cash at hand would be inclusive of both......

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Ashiwini Ballodia (Managing Partner at TAXounting) (8727 Points)
Replied 02 July 2017

So sir I am only disclosing bussiness cash in ITR and not the personal cash

Dhirajlal Rambhia (SEO Sai Gr. Hosp.) (160663 Points)
Replied 02 July 2017

Well, you can justify....... Schedule:: PART A- BS....... of ITR 3............. (AY 2017-18).... No Account Case..

6. In a case where regular books of account of business or profession are not maintained -
(furnish the following information as on 31st day of March,2017, in respect of business or profession)

a. xxxx b. xxxx c. xxxx d. xxxx