Opening capital

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This query is : Resolved

Ashish Goyal (Querist)

22 February 2013 If somebody is filing return for the first time, how much opening capital we can show in the balance sheet/capital account.

Sanket

Sanket (Expert)

22 February 2013 For filing income tax return for current year, opening capital does not a problem. You may file your return even a higher amount of opening capital. But you must have proper justification with supporting documents in respect of this opeing balance of capital. Opening capital represent balance of income earned in previous years. So you must have valid source of income in past and calculation of capital taken as opening balance.

CS RAJESH C.CHOUDHARY

CS RAJESH C.CHOUDHARY (Expert)

22 February 2013 It Depends on the Previous Year Income earned.
You can show Higher amount also. But you have to provide documents related to that.

Ashish Goyal

Ashish Goyal (Querist)

22 February 2013 If assessee is 35 years old housewife. Can we show opening capital of Rs. 20 lacs as she gives tutions at home and do some other work from home from last 10 years, and save money from monthly household expenses given by her husband, also have one house of Rs. 10 lacs in her name.

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