Accounts pertaining to sole proprietor
Querist : Anonymous
For a partnership firm, a P&L a/c is prepared and Tax computation is worked out by adding or deducting relevant P&L items to the Net Profit.
Wanted to know which account is to be prepared (a P&L or Receipt/Payment or any other) in case of a sole proprietor?
Which sections are applicable while computing Tax for a sole proprietor?
thanks in advance
Same sections are applicable as are applicable i.e. Income Tax Act on computing the business Income of an Individual.
Querist : Anonymous
Couldn't understand your reply. Pls be clear.
Kindly comment on the Accounts to be prepared as well.
Accounts that need to be prepared are Profit & Loss Account & Balance sheet.
And while calculating Income for Tax purpose Income Tax Act will be applicable for computation of Income & Tax thereon.
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