Itr4

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SNDEP (Querist)
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11 July 2013 ITR4
Part BS

No Account Case
1. Amount of the cash balance - Does this also include fixed deposits in banks?

2. I do not have debtor n creditor balances bcoz most of the business on cash basis.therfore I receive cash and cheque. plz ans. me that cash in hand asked in itr4 will that include bank balance or not.

3.i've NP rs. 105000. do I have to equalize my cash-in-hand & bank bal. with NP.

CA PARAS BAFNA

CA PARAS BAFNA (Expert)
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11 July 2013 Cash means cash balance only. Bank FD's are not cash.
.
Bank Balance is not required to be reported.
So, mention Drs=0, Crs=0, Cash= Actual Coins and Currency Notes.
.
No need to equalise or apply any fiction. Fill up ITR on the basis of facts and reality.
.

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SNDEP

SNDEP (Querist)
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11 July 2013 i got it.......but will u change ur answer if I say that I use business current account mostly receipts and payments (thru cheque) are recorded in that account.....as u said bank bal. not to be reported.

only small exp. paid via CASH.

Aashok Kumar Sharma online

Aashok Kumar Sharma online

(Expert)
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02 August 2024 Given your clarification that you use a business current account for most transactions and only small expenses are paid in cash, here's how you should approach the reporting in ITR-4:

### 1. **Cash Balance**

**In this case, you should include:**

- **Physical Cash**: Only the physical cash you have on hand at the end of the financial year should be reported as "cash in hand" in Part BS.

### 2. **Bank Balance**

**Since you use the business current account for most transactions:**

- **Bank Balance**: You should report the balance in your business current account under "Current Assets" in the Balance Sheet section. This is because, even though you are filling out the "No Accounts Case" section, your business account balance represents a significant part of your business assets and should be reported separately.

### 3. **Handling Cash and Bank Balances**

**In ITR-4 (No Accounts Case):**

- **Cash in Hand**: Report the actual physical cash you hold.
- **Bank Balance**: Report the balance in your business current account separately under "Current Assets." This means you need to include your business current account balance even if it is not explicitly mentioned in the "Cash in Hand" section.

### 4. **Net Profit Reconciliation**

**Reconciliation:**

- **Net Profit**: Ensure that the total cash balance and bank balance reported, when combined with other assets and liabilities, reconcile with your net profit. This ensures that your reported cash and bank balance aligns with your overall financial results.

### **Summary**

- **Cash in Hand**: Only include physical cash on hand.
- **Bank Balance**: Include the balance of your business current account under "Current Assets" in Part BS.

Even though the "No Accounts Case" approach is more simplified, it's essential to provide accurate details of all your assets, including your bank balance, to ensure that the financial statements in your ITR-4 are complete and correct.

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