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Rental income

santosh mishra (student) (38 Points)

25 September 2016

Dear Sir, I have a property which is on Rent and I am doing a business as a proprietorship concern. My question is : Is it necessary to show Rental Income in my Balance sheet as Rental income is not connected to my businees

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7 Replies

Ashok Kumar (CA qualified) (389 Points)
Replied 25 September 2016

No need to show it in your P&L a/c of the business. You can directly show it under income from house property in your IT computation

Kajal Jain (Freelancer-Chartered Accountant) (551 Points)
Replied 25 September 2016

the rental income will not be a part of ur balance sheet since it is not related to your business..but the property should be shown as an asset in ur personal balance sheet
the rental income can be shown as a part of ur capital account in ur personal balance sheet...
which can further be shown under income from house property in ur computation of income...

FCA surbhi jain (FCA) (897 Points)
Replied 25 September 2016

Rental income will not part of balance sheet . you can take it under house property income.

1 Like

P. Shah (Accountant) (207 Points)
Replied 25 September 2016

I am having some query regarding c form. I know basic about CST but I don't have in depth knowledge. If A of Mumbai sells goods to B of Jaipur then it is considered as inter state sales and CST will be charged @ 2%. A has raised invoice in favour of B and charged 2% CST in invoices. But the main thing I want to know that if A fails to collect C form from B later on then what will be the impact . I have heard many times that CST refund will not process. But I don't know how CST refund occurs .

DINESH K KUMAR (PROPRIETOR) (21 Points)
Replied 25 September 2016

Not necessary. But if it is shown, such income is to be deducted from the head income from house business as income declared under other head.

Ramachandran (Senior Executive ) (106 Points)
Replied 26 September 2016

Mr.X, find below some information about C form.

"The C Form comes into picture when interstate trade takes place. The buyer dealer of different state issues C Form for compliance of CST Rules of the state of selling dealer. The buyer can purchase goods at concessional rates, against C Form, in the inter-state sale. C Form can be issued only by a registered dealer to another registered dealer. It can be issued, generally, in respect of raw materials, packing materials goods covered by the certificate of registration of the issuing dealer. If the buyer dealer fails to provide C Form, the seller dealer has to pay full CST in due course, therefore it is advisable to obtain appropriate security until C Form is received by the seller dealer in due course."

Hope, this paragraph makes some sense.