Balance sheet of ITR 4

I want to know if there is no assets, no liabilities and no capital, how can we treat balance sheet schedule of ITR 4?

This is a case, in which whole income is from insurance commission, where no expenditure is shown. Is filling ITR 4 correct?

 

THANKS IN ADVANCE

Replies (9)

Dear

This cannot be possible, if there is an income there must be bank or cash account. If there is a bank / cash account there must be a capital. So think again.

Originally posted by :Satvir Singh Litt
" it is better if u file with ITR 2 "


 

commission recd shall be the income from business which shall appear in the bal.sheet in cash a/c and simultaneously ,on the other side capital a/c shall be credited and this is how balance sheet and profit and loss a/c can be prepared.

Hello Satvir,

Nothing is wrong if you filed ITR 4 without giving the details of BS items, unless you are required to maintain books u/s. 44 of our IT Act.

 

ITR- 4 should be filed for insurance income. such return may be filed without disclosing balance sheet items.

Dear,

it is not compulsory to file balancesheet alongwith ITR 4. Only when you are required to maintain books you should prepare balance sheet. in case of insurance commission business you can definately ignore to prepare balance sheet.

is it compulsory to maintain books of accounts in case income from insurance commission is more than 2,00,000??

 ^  i think its 120000!



below 120000 no need to maintain books above 120000 proper books should be maintained!

Books of accounts is compulsory for all and for 8 years but if the turnover is more than 40lakhs then Proper books of accounts have to be maintained this have no relavance with the Income/Profit

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