Balance sheet of proprietorship & proprietor under 44ab

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manik (Querist)

12 May 2018 Proprietor has income from all 5 sources( salary,rent,business(44AB, 44AD),other sources. whether preparing balance sheet only belongs to the proprietorship business(44AB) is enough. or to prepare consolidate BS for include all the asset of personal for 44 AB purpose and what BS to fill in ITR form.(i.e only proprietorship BS(seperate for particular) of particular business required to audit under 44AB is enough to fill in ITR form).

CA PARAS BAFNA

CA PARAS BAFNA (Expert)

12 May 2018 Consolidated Audited Balance Sheet and P&L Account of all the Proprietory concerns is required to be filled up in ITR.

Bhaskaran Chackrapani Warrier

Bhaskaran Chackrapani Warrier (Expert)

12 May 2018 Audit is for business income. Therefore, law mandates to fill BS for business only.

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manik

manik (Querist)

14 May 2018 @ CA PARAS BAFNA SIR. WHETHER HIS SALARY & OTHER SOURCE ALSO REQUIRED TO BE FILLED IN ITR BS. since there are varying opinion kindly clarify with additional details. thanks in advance

CA PARAS BAFNA

CA PARAS BAFNA (Expert)

14 May 2018 1. If you record all the details of Salary Income and other sources income of the Individual into Books of Account of his proprietorship firm , then only you are required to report the effects into BS and P&L, otherwise there is no necessity to show the same in the BS and PL in ITR.
2. You may also read instructions for filing the ITR wherein it has clearly mentioned that in BS and PL the details are required of for the Prop firm only. So if you do not record Salary and other sources income in the firm's books no need to report in BS & PL.

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