Return for A.Y. 07-08

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Sandeep Keswani (Querist)
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24 December 2008 One of my client wants to file his Return of Income for the A.Y. 07-08. During the relevant P.Y. 06-07, he earned Salary Income and Income from Other Sources from April 06 to September 06. From October onwards, he started a proprietary business. Prior to A.Y. 07-08, he has never filed his return of income (this will be his 1st return). As no return is filed before this, how do I show the source of the initial Capital introduced by the proprietor ??

CA Tilak Raj Sharma

CA Tilak Raj Sharma (Expert)
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25 December 2008 First an individual is not liable to file his ROI if the income is below the amount liable to income tax.

To show the source of income, it will depend upon the sources used by the person for investment. How much money is involved and where this money has come, will be the deciding factor to determine the sources to be shown in the income tax return.

CA RAMESH KUMAR AHUJA

CA RAMESH KUMAR AHUJA (Expert)
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25 December 2008 You should prepare a B.Sheet as at 31.03.06 by taking into account all assets in hand and the liabilities thereagainst. The balancing figure will be the Capital as on 31.03.2006. Prepare accounts for the period 01.04.2006 to 31.03.2007 and compile Balance Sheet and P&L A/c and file the return accordingly.

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