Issue in Filling Income tax return

Hi

I am facing a problem while filling the Income tax return. 

An Assessee has an Opening stock of Rs 1 Crore. His purchases for the year amounts to Rs 10 Lacs.

His Purchase return is Rs 70 lacs ( of the opening stock) . How should I show the Purchase return in the Income Tax form ?

Replies (6)

Just reduce the Purchases by that amount. It does not matter whether its from opening stock or current purchases. You can show it as net purchases.

Originally posted by : CA.Tarun Maheshwari

Just reduce the Purchases by that amount. It does not matter whether its from opening stock or current purchases. You can show it as net purchases.

But the Purchases will be negative and the ITR does not accept negative values for purchases.

In that case, better option is that you show it as net consumption (Opening + purchase-Purchase return-Closing stock). Than it will be entered easily.



Someone told me to enter the value in other expenses but it is not an expense.

 

in FORM 4 THERE IS NO FIELD TO FILL UP NET CONSUMPTION. HERE OPENING STOCK, PURCHASE AND CLOSING STOCK IS TO FILLED.

NEGATIVE PURCAHSE , ITR IS NOT TAKEN.

HENCE IT IS BETTER TO INCLUDE PURCHASE RETURN IN SALES, BECASUE PURCHASE RETURN IS MADE BY ISSUING OF SALE INVOICE , YOU CAN SHOW IT SALES AS SUCH.

THIS IS ONLY WAY BY WHICH YOU CAN FILL YOUR DATA AND GET CORRECT RESULTS.

I guess this could be done. I do not see any other way of entering the data.

Leave a Reply

Your are not logged in . Please login to post replies

Click here to Login / Register  

Company
Featured 12 September 2026
Assistant Manager - Finance & Compliance

Naveen Fintech Pvt Ltd

Kolkata

CA Inter

View Details
Company
05 October 2026
Senior Accountant

Vision IT Peripherals Pvt Ltd

Mumbai

B.Com

View Details
Company
ARTICLESHIP 16 September 2026
CA Article Trainee

SR BAGAI & Co.

New Delhi

CA Inter

View Details
Company
30 September 2026
Senior Accounts Executive

Codeboard Technology

Chennai

MBA

View Details
Company
09 September 2026
Semi Qualified CA / CA Inter - 2 Groups Cleared

Getmyca Consultant Pvt Ltd

New Delhi

CA Inter

View Details
Company
ARTICLESHIP 07 October 2026
Article assistant

S.K.Bajpai & Co.

Noida

B.Com

View Details
Company
20 September 2026
Semi Qualified CA

Navin & Associates

Mumbai

CA Inter

View Details
Company
ARTICLESHIP 16 September 2026
Article Assistant

MANUJ SHARMA AND COMPANY

Noida

CA Inter

View Details