Change of Accounting Systems
This query is : Resolved
29 October 2010
Repsected sirs,
One of my friend is earning Commission income, Upto financial year 08-09 he had adopted Mecantile System of accounting now during financial year 09-10 he has recevied 30 lakh commission of which Rs. 12 Lakh has been credited into his account on last day of accounting year for which TDS certificate is issued to my friend in Form 16A. Since it was accounted on last day of accounting year he could not pay Advace Tax & could not file returns in time on account of non receipt on money till date. Now my question whether he can change accounting system from mercantile to cash System for 2009-2010. If he changes his system of accounting will there be any issue with Income TAx departement in future.
awaiting your reply
Thank You
One of my friend is earning Commission income, Upto financial year 08-09 he had adopted Mecantile System of accounting now during financial year 09-10 he has recevied 30 lakh commission of which Rs. 12 Lakh has been credited into his account on last day of accounting year for which TDS certificate is issued to my friend in Form 16A. Since it was accounted on last day of accounting year he could not pay Advace Tax & could not file returns in time on account of non receipt on money till date. Now my question whether he can change accounting system from mercantile to cash System for 2009-2010. If he changes his system of accounting will there be any issue with Income TAx departement in future.
awaiting your reply
Thank You
02 January 2011
"now during financial year 09-10 he has recevied 30 lakh commission of which12 Lakh has been credited into his account on last day of accounting year for which TDS certificate is issued to my friend in Form No 16A."
From the above part of your query it seems that your friend has received the amount of30.00 Lacs. and only 12.00 lac has been credited into his account. It shows that your friend has taken18.00 lac as advance towards commission?
In the later part of your query you are complaining that he has not received amount. How it's possible?
Please modify your query rightly to avoid confusion.
However, just for the sake of one year if you want to change the method of accounting , it may be questioned by the department.
From the above part of your query it seems that your friend has received the amount of30.00 Lacs. and only 12.00 lac has been credited into his account. It shows that your friend has taken18.00 lac as advance towards commission?
In the later part of your query you are complaining that he has not received amount. How it's possible?
Please modify your query rightly to avoid confusion.
However, just for the sake of one year if you want to change the method of accounting , it may be questioned by the department.
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