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Balance sheet & itr for sole proprietorship & proprietor

Abhishek (NIL) (159 Points)

25 July 2019

Hello everyone, I need you help to understand this problem.

(Proprietor of the firm is HUF)

Till last year the proprietor (HUF) was filling ITR3 for himself and this year he have started an sole proprietorship firm, so I am confuse how to fill return for both or how to merge there balance sheet and which ITR will be filled ITR3 or not. as there is his personal income also in his balance sheet and there is firm loss this year so how to calculate all this. please help me with an prefill sheet or example. Please help me. Thanks in advance.

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5 Replies

Dhirajlal Rambhia (SEO Sai Gr. Hosp.) (160327 Points)
Replied 26 July 2019

I don't see any difference in last year and this year's structure.

HUF was proprietor of business last year and even this year, whether you merge business income or separate it; IT filling will be for the total income of HUF aggregated from all five heads of income.

1 Like

Abhishek (NIL) (159 Points)
Replied 02 August 2019

business has been started from 1 jan 2019 earlier till fy 2017-18 there was no firm he was filling IT return for HUF only but for financial year 2018-19 there is an firm so how to do the same please help

Dhirajlal Rambhia (SEO Sai Gr. Hosp.) (160327 Points)
Replied 02 August 2019

Who is the proprietor of the firm?

If HUF, then there is no difference, only label changes, PAN of HUF or the firm is one & same.

Abhishek (NIL) (159 Points)
Replied 06 August 2019

HUF is the proprietor of the FIRM,

till FY 2017-18 there was no firm. recently Jan 2019 he have started a firm.

there is his own balance sheet available where he use to fill ITR3 for HUF income.

Now when he have form a firm where HUF is proprietor how to merger the balance sheet of HUF and Firm and how to fill the it return for the same

Dhirajlal Rambhia (SEO Sai Gr. Hosp.) (160327 Points)
Replied 06 August 2019

If you have capital account of HUF, you may merge it with BS of the firm; but as such it is not advisable. In ITR (of HUF) you may provide just P&L & BS of the firm. That is enough.