I need to file 2 ITRs, one for my grandma who is above 65 and unemployed and one for a Pvt Ltd Company
I am 17 so I didnt had any bank accounts so for all my work and transactions I have used her account till now. The savings itself may not be over 2 Lacs but total transactions will be over 8 Lacs probably so I wanted to file a ITR for that.
I have a few questions and doubts about it so I will really appreciate if you could help me.
1. Can a unemployed person like her directly file the ITR ? I think there is something like source of income so can I show her as self-employed or something ? I am a freelancer and all my transactions are 70% Int. from her account.
2. While filing ITR do we just need to show total income, total expense and total savings ? Or do we need any kind of a statement with all the transactions for that year ? Also, are any invoices etc. needed for any of the expenses ?
3. Incase we need invoices, please tell me what kind of invoices are accepted, any example and what if the transaction didnt had any invoice like in case of paying someone fees for some work and such cases.
4. If we need a transaction statement for full year, do we need transactions on exact dates, amounts etc. ? Since I pay Int. trx. there maybe time difference of upto 1 day and even the amounts on invoice will differ a bit as invoices will be in USD/EUR
Also, for small personal expenses, can we group them into a single expense for the month or two months ?
Like there are 11 transactions for Dominos for 2 months, then we show it as a single total amount transaction for those 2 months, then another transaction for next 2 months after 2 months.
If possible, please try to explain a bit regarding my scenario as its my first time doing anything related to ITR. Right now I have started logging all my transactions and payments etc. in an accounting software.
2. Regarding ITR Filing for Company
Company was formed in July, my Grandma is also one of the Directors and Shareholders, can we use this to show her income source for above ITR filing ?
Company has PAN but dont have TAN yet, is TAN needed for ITR filing ? All payments are again international directly via a credit card for services, no physical goods or exchanges.
Company transactions are like this.
We pay for all monthly server costs etc. via a credit card and then send a cheque for the CC bill each month from company acc.
This way company acc has few yet big amount Trx for monthly payment recieved (Online Payment Gateway Withdrawal like Paypal) and payment for CC and other costs.
I have heard there is needed something called Bookkeeping and Auditing ? What is that and can I do it ? Its March already so I want to finish it ASAP.
Do we need any invoices/trx statements for it also like above ? Can we again group the income and payments for a single client or type as a total single payment done on/via CC and money recieved in Paypal ? As there will be too many individual trx on those accs.
PS: I dont plan to file ITR myself or such, I will ask a CA to do so, but to save myself time and have a proper record of all my payments, expenses etc. I am entering all transactions in ITR way in my software and so need all above guidelines according to that.
CAclubindia
