Additional capital

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

08 August 2011 My query about procedure of Additional Capital Introduce in Business

1. What is Procedure of introduce of Additional capital in business.
2. What is compliance's in income Tax for introduce Additional capital.
3. Where shown Additional Capital in ITR-4.
4. Is require any Documentation for Additional capital.
5. ITR-4 (A.Y 2010-11)
Income From PGBP Amount rs- 100000
Income From Other Sources rs- 50000
Proprietor add above rs-50000 in capital account as introduce additional capital in business and increase their capital to rs-50000. When fill return ITR-4 in A.Y 2011-12.
is point 5 correct.

CA Ashwani Agarwal

CA Ashwani Agarwal (Expert)
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08 August 2011 1 & 2 No procedure is specified anywhere.
But you have to prove that the amount invested by you is your savings or your other incomes shown in your Returns. Otherwise the AO can treat it as income not shown and tax it accordingly.

CA Ashwani Agarwal

CA Ashwani Agarwal (Expert)
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08 August 2011 Additional capital is not shown anywhere in ITR 4. No other documentation is needed.

The treatment done by you in Point 5 is correct. But you may also consider sec 44AD and file your return in ITR 4S.

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