ITR Filing Doubts

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This query is : Resolved

Quick Summary

A trader started a new business in August 2020 during lockdown, facing challenges operating from home. They made transactions under their personal name and a trade name, with most payments in cash below £60,000. The trader is unsure how to declare these mixed transactions as turnover in their Income Tax Return (ITR) and if they can claim related expenses. It's crucial to declare all business transactions accurately in both GST and ITR filings to avoid discrepancies with authorities.

sankar ponnan

sankar ponnan (Querist)
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13 January 2022 SIR / MAM
A Trader has started his new business in Aug-2020 with GST Registration.
As it was under covid lock down period, he was not able to run the business successfully.
He could not open his shop regularly and work in office.
So he was doing his business at home
He purchased and sold the products in his individual name itself and not in trade name.
He has done only 25% of transactions in Trade Name
All the payments for invoices in his own name are done by cash - every bill has its approximate value of Below Rs.60,000/-
As transactions are not in trade name, He has not shown in his GSTR-1 Return?
There were no credits in GSTR-2A also.
Total Turnover in his books was Rs.9,41,798/-
While filing his IT,
Can we show his all transactions (i.e) traded both in his Personal name and Trade name As Turnover?
If Yes,
Can he claim his expenses ?
Should pay IT on the transactions made in personal name?

Kindly plz guide me
Thanks in adv

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)
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13 January 2022 He is legally bound to offer all his transactions in ITR and GSTIN. If he declares only one business in GST and both business in ITR, he will be inviting trouble from GST authority. So, try to rectify undeclared transactions...