Dear experts,
I seek an advice from all of you that how should I deal with following matter for my income tax return filing.
The matter is that I have been using my son's bank account for my business transactions as my bank' internet banking was not operating properly due to sone technical reasons. My son is 23 yrs old and he is not getting any salary.
I have also recieved the payments in my son's bank account from my debtors and Moreover I have also transferred money in his account. How to account this? And how he would account the money received from me and debtors of my bisiness
How to account for this in return?
How should I deal with this?
Please advice.
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Income tax filing of business
Replies (3)
If it is a joint account then ok ..
Have u shown any transaction with your son?
If not then you have to show it.
Have u shown any transaction with your son?
If not then you have to show it.
No it's not a joint account. This is what the issue is that how to account for this?
You will have to pass Journal entries in business books of accounts for payments made from your son's account to your creditors or for business expenses.
Your Son would be a creditor in your books of accounts.
if you have recieved the payments in son's bank account from debtors and others, than also pass a journal entry with same "Son's A/c" Which you have used as creditor for payment entry.
After the end of period, from which you stop transaction from your son's account, do a final settlement with "son's A/c"(i.e Give/receive) from/to your account.
Your Son would be a creditor in your books of accounts.
if you have recieved the payments in son's bank account from debtors and others, than also pass a journal entry with same "Son's A/c" Which you have used as creditor for payment entry.
After the end of period, from which you stop transaction from your son's account, do a final settlement with "son's A/c"(i.e Give/receive) from/to your account.
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