Hi,
Can anyone please let me know, in ITR-4 what is 'Amount of cash balance' in PartA-BS for IT professionals?
Thank you!
A.Gopal
(Partner)
(63 Points)
Replied 29 December 2016
ITR 4 is the form prescribed for individuals and HUF having properiety business or profession.
Section 44AA(1) mandates maintenance of accounts by professionals detailed therein or any other professional as is notified under that sub-section irrespective of the quantum of income or professional receipts.
Vide notification 385(E) dt.04.05.2001 profession of Information Technology has been notified as a profession requiring maintenance of accounts u/s 44AA(1).
In view of this mandatory requirement of the statute, IT professionals need to maintain books of account.
Therefore, amount of cash balance would mean cash as per books of account so maintained.
Link of notification is annexed.https://www.incometaxindia.gov.in/pages/communications/index.aspx
Abhishek
(Freelancer)
(57 Points)
Replied 29 December 2016
Ok, thank you. That cash balance would be just cash in hand or cash in hand + savings a/c balance on 31st march, please confirm.
A.Gopal
(Partner)
(63 Points)
Replied 30 December 2016
Yes. Cash in hand only as Schedule BS in Part A of ITR 4 has under Current Assets Loans & Advances in Item 3(iii) also asks to seperately disclose balance with banks.
Abhishek
(Freelancer)
(57 Points)
Replied 30 December 2016
Thank you. Really appreciate. In the same BS schedule, there's a NO ACCOUNTS CASE section given, for cases where the regular books of accounts are not maintained. Can this 'cash in hand' amount be filled in 'Amount of Cash Balances' field under this 'NO ACCOUNTS CASE' section. Also, what would be filled in sundry debtors, creditors and stock-in-trade fields?
A.Gopal
(Partner)
(63 Points)
Replied 30 December 2016
Notification r.w. Sec 44AA(1) makes it obligatory on the IT professional to maintain books.
If no book is maintained, fill column 6 which is also the requirement under Part A BS.
Abhishek
(Freelancer)
(57 Points)
Replied 30 December 2016
Thank you! Can you please confim if 'cash in hand' amount only need to be filled in 'Cash Balances' field under column 6. Also, what would be filled in sundry debtors, creditors and stock-in-trade fields in column 6. Thanks very much for all your help!
A.Gopal
(Partner)
(63 Points)
Replied 30 December 2016
1) Stock is derived by remioving from the quantity sold the quantities bought in the subsequent year and valued at cost.
2) In the case of debtors, the figure is previous year's invoices not realised so far plus collections realised after 31.03 in relation to an earlier year's invoice.
3) Creditors figure is also derived in a similar way by adding payments made in current financial year to suppliers towards invoices of previous year and reducing from current year's payments the value of payments made towards invoices of current year and adding to that the suppliers who have not been paid for supplies effected before April.
In the case of other particulars they have used the total debtors, total creditors, total stock.
In the case cash balance they have not mentioned as cash and bank balances.
Therefore, it is enough if you fill the cash in hand only.
In the case of Part A P&L, you need to fill 53.
Abhishek
(Freelancer)
(57 Points)
Replied 30 December 2016
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