Need for filing Balance sheet along with IT Returns

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

13 July 2011 I have been filing my IT returns as tax assessee in Salary ward . I have moved out of regular salaried job from July 2010 to be a freelance consultant and getting professional fees from the companies I offer my services . They deduct TDS and I receive form 16A from them . In view of this , I am told that I need to file my returns for the assessment year 2011-12 in Business ward ? Is this correct ? When I do so is it mandatory to file a Balance sheet of my personal assets and liabilities ? Is it a must . Need help and advise from experts since I am confused with many versions on this . Also is it better to do e-filing from this year since I have been filing my returns in physical form all these years ? Will be thankful for proper advise on the above . Thanks in advance

C A S.S.Agarwal, M.Com.,LL.B,

C A S.S.Agarwal, M.Com.,LL.B, (Expert)
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13 July 2011 In case you are maintaining the books of account you should file otherwise it is not required to file. It is better to file the Balance Sheet so that the department knows about your financial status and gives a clear picture of your cash in hand and with bank.

Once your income is covered under Income from profession and business you have to file your return under the salary ward. You can file your return online also.

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Querist : Anonymous

Querist : Anonymous (Querist)

13 July 2011 Thank you Mr.Agarwal . I sincerely appreciate your prompt response . Coming back to your reply since I have income both from profession and consultancy , Pl confirm if I have to file my returns under the salary ward only .Sorry for bothering you,. Only for more clarity

CA PARAS BAFNA

CA PARAS BAFNA (Expert)
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13 July 2011 What is difference between your profession and consultancy business?

In case of profession , say medical, legal, accountancy etc..certain books of accounts are required to be maintained depending upon the nature of profession in which you are engaged.
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In case you are working under a prop. firm name, you can give Balance sheet & P&L A/c in respect to that firm only.
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Your remaining Income can be shown through Computation of Total Income under the respective heads.
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e-filing is a better option but do not
think that you will be relieved after e-filing. It is better to entrust the work to a CA. You will save time which is more than the money you will save.

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