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How to prepare first balance sheet
As per new RERA Rules in Maharashtra, every broker should take licence for doing broker business in Real Estate. And for taking licence they asked ITR Acknowledgement.
And as per my research work if income is earned through Brokerage than assessee need to maintain books of accounts under section 44AA.
So as per this rule I need to prepare balance sheet and Profit & Loss A/c.
But since this will be my first balance sheet, what should be my opening capital balance.
I have no office, i do work from my rental home and most of our business is through phone and at site of property.
Can anyone guide me what should be my opening capital balance and how to prepare first balance sheet.
My gross receipt not exceeded 3,00,000 in a year.
Any rough idea is also welcome. Thank You.
Replies (9)
File return u/s 44AD Give nature of business in ITR as 'others'
You can File your return u/s 44AD and declare the income on presumptive basis from brokerage income.
brokerage/ commission business is not eligible for 44AD
For opening capital you can sum up all your business related assets whatsoever, including the last financial year closing bank account balance plus some cash in hand(on general approx basis) minus any business associated liability if any. As you are operating at small infrastructure of your business its not so rigid to have a handsome amount of capital, but up to a genuine level.
why brokage/commission do not eligible for 44ad?
6] The provisions of this section, notwithstanding anything contained in the foregoing provisions, shall not apply to—
[i] a person carrying on profession as referred to in sub-section [1] of section 44AA;
[ii] a person earning income in the nature of commission or brokerage; or
[iii] a person carrying on any agency business.
[i] a person carrying on profession as referred to in sub-section [1] of section 44AA;
[ii] a person earning income in the nature of commission or brokerage; or
[iii] a person carrying on any agency business.
You might have incurred certain expenditures for earning this income say telephone charges, conveyance, etc. You recieve income after certain period. So the amount you have paid for incurring this expenditure till the time you have recieved income can be shown as Capital Invested it.
You might have incurred certain expenditures for earning this income say telephone charges, conveyance, etc. You recieve income after certain period. So the amount you have paid for incurring this expenditure till the time you have recieved income can be shown as Capital Invested it.
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