How to file income tax return of ATM franchisee business where owner cash withdrawls from s/b a/c

ITR-3 is used for the ATM cash loading/franchise business  since the income is in the nature of commission and not eligible for presumptive taxation under ITR-4.

The taxable income is only the commission received from the bank which is credited to your account. The cash withdrawn from your savings account and deposited into the ATM is not income but merely circulation of your own funds and should be shown in the balance sheet as capital introduced(Liability side) or cash in hand(Asset Side).

In the Profit & Loss Account the revenue will be the commission from ATM transactions and you can claim expenses such as rent, electricity, internet, maintenance, bank charges, and depreciation on the ATM machine (if owned). After deducting these expenses, the net profit will represent your taxable business income.

sir pls ellobrate paragraph 2 again.

let say client cash withdrawl from his saving account is 2 cr and deposited in to atm machine.then how to fill the balance sheet.

Presumptive taxation applies only in case of source, quantum and nature of income.

Show only the ATM-franchise commission as business income; cash moved from the proprietor’s own savings account to replenish the ATM is not business income or an expense. In the books, record the ATM cash as cash held in the business/ATM and the transfer from personal funds as proprietor’s capital introduced (or drawings reversed, if previously recorded as a withdrawal). Reconcile ATM loads and cash collections to the operator’s settlement statements and bank records.

Report allowable business expenses separately, subject to supporting records. The applicable ITR form and tax method depend on the business’s facts and eligibility for presumptive taxation; do not treat gross ATM cash loaded as turnover or claim it as an expense. Keep bank withdrawal slips and ATM cash-replenishment/settlement records to explain the source and movement of cash.

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