Hi,
Person is self-employed and generating income from small street stall. Never filed return as income do not have any proof and not even taxable. Now, with Tax awareness increased want to file return. What are the thing need to take care? He has some money saved in past few years.
Money earned on daily basis is not going to bank and spent directly. For example, earning 2000 per month and spending same. How to show it in return as income?
The method shown by Ms. Pandit will have to be followed to prepare P&L from cash inflow/outflow statements.
It needs to be seen whether he wants to go through this difficult exercise for the whole year just to file IT returns which, as you said, is not even taxable.
The purpose of IT filing is to stand with latest law and technology upgrade. Sooner or later everyone has to have bank account, PAN and clear record.
Question now is, is there any format or procedure to prepare P & L statement?
CAclubindia
