How to show expenses in schedule bp in itr-3 in case of income earned from firm only

ITR Filing 775 views 7 replies

ANURAG BANSAL

20 Points Posted on 19 October 2018

Dear Sir, I am a Partner in a Firm and earn Interest Income, Remuneration and profit from the Firm. I do not have any other Proprietory Business. I used to fill ITR-2 till last year but it seems i have to fill ITR-3 this Assessment year (A.y 2018-19). Sir, i am filling "Share of Income from Firm only" as my "Nature of Business" in ITR-3. I am also filling my details of Interest Income from the firm in "Column A24 of Schedule BP". However, there is no column to show Expenses that i have incurred to earn this income (which was present in all previous years in ITR-2). For Eg- I have taken a loan from Mr.A and put that as capital in the Firm. Now the Interest that i am paying to Mr.A was treated as Expenses incurred to earn interest from the firm and was accordingly set off. However, this year there is no column to show these expenses. You are kindly requested to please advise me how to proceed further. Thanking you in advance.

Replies (7)

Dhirajlal Rambhia

SEO Sai Gr. Hosp.

211715 Points Posted on 20 October 2018

Fill the amount in Column 'A32' of 'Schedule BP'

ANURAG BANSAL

20 Points Posted on 20 October 2018

Dear Sir, Thank you v much for your reply. I have one more query. If in the above case, when i have borrowed money from Mr. A, i have invested part of it as Capital in the Firm, and part i have given loan to Mr.B. Now sir interest income that i am earning on capital investment in Firm and from loan given to Mr.B, will both be together mentioned in Column A24 of Schedule BP. Will in this case "Nature of Business" shall remain as "Share of Income from Firm Only", or shall it change to any other Head? Kindly please advise sir. Thanking you in advance.

ANURAG BANSAL

20 Points Posted on 20 October 2018

Or sir will we show income from loan given to Mr.B as "Others" in Interest Income in Schedule "Other Sources", and keep the Nature of Business head same? Do we need to bifurcate the Interest paid to Mr.A on loan in Column A32 of Schedule BP in case of interest earned from firm and U/s 57 in case of "Other Sources" in case of Interest earned from loan to Mr.B, or can we put them together under Bp, as the net computation shall remain the same? please advise sir. Thanking you.

Dhirajlal Rambhia

SEO Sai Gr. Hosp.

211715 Points Posted on 20 October 2018

Show income from loan given to Mr.B as "Others" in Interest Income in Schedule "Other Sources", and keep the Nature of Business head same. Deduct interest part that is given as loan to firm only.