Disclosure of personal assets in itr 4

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This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

28 July 2013 Urgent.

Hello,

Kindly advice as to where a proprietor can disclose his personal assets i.e. cah, bank, jewellery in his ITR 4

CA PARAS BAFNA

CA PARAS BAFNA (Expert)

28 July 2013 If he is preparing a single balance sheet he can do so.
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If you ask whether he "should" disclose-the reply is "NO".
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Return or ITR is an "interview". More you speak, chances of failure increases. if you are precise and to the point- chances of success are bright.
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Querist : Anonymous

Querist : Anonymous (Querist)

28 July 2013 Thank you Sir, for the reply. The person in not preparing a single balance sheet. However, the proprietor in his last return reported and disclosed personal cash and bank and a loan receivable. Out of the loan amount received, jewellery this year. So request you to advice, whether, he can ignore these balances this year and show only business transactions for this year. Or can he report jewellery purchased as other current assets.

CA PARAS BAFNA

CA PARAS BAFNA (Expert)

28 July 2013 The person is maintaining personal balance sheet also. There may be certain personal assets and liabilities which were not reported in the return . Only a few were reported. My reply goes ahead with the said hypothesis.
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You must be having Balance sheet on the basis of which last year's return was filed.
If not, you can prepare the same, by including the personal reported items as described by you.
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Assume this new/old B/s as the Prop. concern's Balance sheet.
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Transfer the personal items from it to capital account. Correspondingly include them in the personal balance sheet.
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Now only items of Prop. Concern will be left in the refined B/s on the basis of which you can file the return.
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