Sole proprietor

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Querist : Anonymous

Querist : Anonymous (Querist)

17 September 2012 sole proprietors itr shall contain personal balance sheet or his busniess balance sheet?

CA Ayush Agarwal

CA Ayush Agarwal (Expert)

17 September 2012 Business Balance Sheet.
Not Personal.
Should Maintain Personal Balance Sheer Separately.

Sunil

Sunil (Expert)

17 September 2012 In the ITR you only put Business balance sheet. If you have more than one proprietorship, then you consolidate them and write consolidated figures in ITR 4. Even if you have a business or profession that you do using your individual name you have to write an account drawn to arrive at your profit / income. You must make P&L account for this as well as a balance sheet indicating the assets (bank account, cash on hand, sundry debtors, fixed assets, deposits (not your personal fixed deposits in banks)on the asset side and on the liability you show your capital in business / profession, creditors and loans etc. You can also claim depreciation on assets used exclusively for your business. Now if you receive income like interest etc in name of your proprietorship concern, in ITR 4 you have to minus all this from your business profit and show it as income taxed under other heads (other sources). In ITR 4 Your profit incl. interest is carried to balance sheet and your income gets categorised as business income and other sources.

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