ITR-4

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Manish Kumar (Querist)
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15 January 2011 Respected sir, i want to know that what will be the accounting treatment in books and how it will be filled in itr-4 form. the details of the case are:-
The assesse is filling the itr-4 for income from business & profession. but this year he had started paying the instalments(60000 each semi yearly) for obtaining the flat in the city. the flat will be on his name after 3-4 years. he made the payment from the firm,s bank a/c. i repeat my question is that how it will be treated in books and in itr-4.

CA PARAS BAFNA

CA PARAS BAFNA (Expert)
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15 January 2011 Assuming that the assessee is a proprietor, he should record the amount by Debiting Advance for House A/c, which can be shown in the ITR form PartA- BS, Item No 3(b) (i).

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CA. BIJENDER KR. BANSAL

CA. BIJENDER KR. BANSAL (Expert)
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15 January 2011 agreed with experts.

Show it advance for capital asset under loan and advances head..

As soon as flat is acquired, then Advance for capital asset will be t/f to Flat A/c under Fixed Asset.

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Manish Kumar

Manish Kumar (Querist)
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16 January 2011 Thanks for the guidance sir.
But i have some doubts like:- 1.when it will be transferred to fixed assets than at what value it will be shown market price or amount paid for obtaining the house and is any special treatment required at that time in ITR's. 2.will it be appreciated and depriciated under fixed assets. 3.why the amount paid cannot be shown as drawings as business and businessman are seperate and house will be on name of the propreitor

Manish Kumar

Manish Kumar (Querist)
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16 January 2011 i want to also know that with efilling of itr4 is there any fastness in getting refund as compared to manual filling.

CA PARAS BAFNA

CA PARAS BAFNA (Expert)
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16 January 2011 Depreciation is claimed on the assets which are used for the purpose of business.
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In books of account we never consider Market Price in case of fixed assets. So it will be transferred to Fixed Asset heading on the basis of actual amount recorded in the books.
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This question would be answered by yourself.
What we can say ,is Prop. And Individual are the same assessees.

CA. BIJENDER KR. BANSAL

CA. BIJENDER KR. BANSAL (Expert)
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17 January 2011 In books asset will be shown on the book value i.e amount incurred for obtaining such asset.

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