Preparing B/S for ITR
This query is : Resolved
05 May 2011
Hi all experts...I wish to present before u my case so that u can provide the queries at the earliest....
We have a new client who came to us recently in our office. His old CA convinced him to underbook his sales. His is a articles trading business and has only cash sales. Now he has amassed high amt of untaxed money...lets say 5lac.
The problem is that now he is scared and rightly so...He wants to show this BLACK MOney in his ITR this year. But the biggest problem is that he doesn't want to be penalised for this. So he has asked my boss for some effective tax planning and preparing his B/S in such a way so that the black money is accounted as white...
1) Can u pls advise on some transactions for fulfilling the abovesaid requirements??My boss says we may show the money as capital introduced but again the Dept may ask for source....
Thnx in advance..
We have a new client who came to us recently in our office. His old CA convinced him to underbook his sales. His is a articles trading business and has only cash sales. Now he has amassed high amt of untaxed money...lets say 5lac.
The problem is that now he is scared and rightly so...He wants to show this BLACK MOney in his ITR this year. But the biggest problem is that he doesn't want to be penalised for this. So he has asked my boss for some effective tax planning and preparing his B/S in such a way so that the black money is accounted as white...
1) Can u pls advise on some transactions for fulfilling the abovesaid requirements??My boss says we may show the money as capital introduced but again the Dept may ask for source....
Thnx in advance..
05 May 2011
Pls any one answer this???
05 May 2011
Though it is not a right solution, u may obey the direction of your boss. In addition to that observation,the income computation, you may offer the amount of capital so introduced as income offered under the head "income from other sources". Consequence is ,tax and interest has to be paid and can escape from penalty proceedings.
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