Sir, Clause 16 is about "Amounts not credited to Profit and Loss Account" and Sub Clause (d) "any other item of income". Does this Clause 16(d) means any income which is not credited to Profit and Loss Account needs to be reported. Especially for a Proprietary Concern there can be Income From House Property or Income From Other Sources (Interest on Fixed Deposits) which are normally not credited to Profit and Loss Account. Does this clause cover to include such incomes which are not Credited to Profit and Loss Account.
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Clause 16(d) of Form 3CD
Replies (1)
Hi Krishna,
Great question about Clause 16(d) of Form 3CD!
What Clause 16(d) means:
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Clause 16 covers amounts of income which have not been credited to the Profit & Loss Account during the previous year.
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Sub-clause (d) says “any other item of income” not credited to P&L account should be reported here.
Application to Proprietary Concerns:
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In a proprietorship, income like Income from House Property or Income from Other Sources (e.g., interest on fixed deposits) may sometimes be directly credited to the proprietor’s capital account or not passed through the Profit & Loss Account at all.
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Yes, such income falls within the scope of Clause 16(d) because it is income of the business (or firm) but not credited to the P&L.
Therefore:
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Any income earned during the year but not credited to P&L Account should be disclosed under Clause 16(d).
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This includes income like house property income, interest income, or any other income not routed through P&L.
In short:
Clause 16(d) is a catch-all for any income not recorded in P&L but still relevant for tax purposes — yes, it covers such incomes in proprietorships as you mentioned.
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