Can balance with bank be more than gross turnover


Manu (Mr)     13 June 2019

Manu
Mr 
 66 points

| My Other Post

Will there be a problem if i had more balance in bank at the end of financial year than income earned in previous year?

For example 

gross turnover E1(a) = 400000
balance in bank E21  = 700000

 

 

avater

Dhirajlal Rambhia (KVO Merau Kutchh)     13 June 2019

Dhirajlal Rambhia
KVO Merau Kutchh 
 8809 likes  90560 points

View Profile | My Other Post

Unless capital introduced by partners/proprietor in firm, it is not possible. ITD may raise a query.

avater

Dhirajlal Rambhia (KVO Merau Kutchh)     13 June 2019

Dhirajlal Rambhia
KVO Merau Kutchh 
 8809 likes  90560 points

View Profile | My Other Post

Unless capital introduced by partners/proprietor in firm, or loans or payable to creditors etc... it is not possible. ITD may raise a query.

1 Like

Manu (Mr)     13 June 2019

Manu
Mr 
 66 points

View Profile | My Other Post

Thanks for your reply.

The balance was due to FD (fixed deposit) that matured. I did not renew the FD so there was some excess balance.

Should i leave the "balance in bank E21" column empty to avoid any problem?  it is not mandatory to fill that column.

oveiya krishnasamy (android)     13 June 2019

oveiya krishnasamy
android 
 24 points

View Profile | My Other Post

I am sure this post has helped me save many hours of browsing other related posts just to find what I was looking for. Many thanks!
qlik sense online training

avater

Dhirajlal Rambhia (KVO Merau Kutchh)     14 June 2019

Dhirajlal Rambhia
KVO Merau Kutchh 
 8809 likes  90560 points

View Profile | My Other Post

Better to fill the column, as its explainable.

Manu (Mr)     14 June 2019

Manu
Mr 
 66 points

View Profile | My Other Post

Ok.

In balance in banks (E21) column do i have to give the total income earned or whatever balance was there as on 31 march?

Also you mentioned  ITD may raise a query, is there any reason why ITD will raise a query? 
 

avater

Dhirajlal Rambhia (KVO Merau Kutchh)     15 June 2019

Dhirajlal Rambhia
KVO Merau Kutchh 
 8809 likes  90560 points

View Profile | My Other Post

Balance as on 31st March of relevant year.

High value transactions or bank balances are generally caught under ITC radar.

Manu (Mr)     15 June 2019

Manu
Mr 
 66 points

View Profile | My Other Post

Ok thanks your reply.

Ajay Gupta (PRACTICING CHARTERED ACCOUNTANT)     19 June 2019

Ajay Gupta
PRACTICING CHARTERED ACCOUNTANT 
 8 likes  176 points

View Profile | My Other Post

Dear Manu - In normal scenario bank balance would be less than or equal to turnover. There must be some abnormal transactions, which would have increased the bank balance.

Please possess appropriate documentation for these transactions and do ensure appropriate treatment in ITR. If these two things are followed by heart, then we can respond to any sort of query from the IT department. 


Leave a reply

Your are not logged in . Please login to post replies

Click here to Login / Register  




Popular Discussion


view more »