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ITR

Ganga (CA Final) (101 Points)

08 October 2010

HI,I NEED A CLARIFICATION REG: WHETHER TO CLUB PROPREITOR'S BUSSINESS BALANCE SHEET AND HIS PERSONAL BALANCE SHEET IN ITR OR ONLY THE BUSINESS BALANCE SHEET

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4 Replies

CA Siva Kishore (M.COM, F.C.A.) (716 Points)
Replied 09 October 2010

Though the wording of ITR indicates Balance Sheet in respect of Business has to be filled up, to give true state of affairs and to avoid further complications, Both the B/sheets have to be consolidated in my opinion.

Anuraag Sharma (Sr Executive Finance) (845 Points)
Replied 09 October 2010

i agree with CA D. Siva Sir

prashantkumar (CA final) (96 Points)
Replied 09 October 2010

Sir,

D Siva Sir

I heard that personal balance sheet means statement of affairs prepared on taking into a consideration of all his personal assets nd liabilities for the purpose of wealth tax nd some other purposes (like loan, od facility etc) so how can it ll be consolidated in the ITR balance sheet . ITR relates to business/profession na

so only his capital ll be taking into consideration while preparing those balance sheet.

Sir / students can any one clarify this my confusion.

thanks in advanced .

Devendra (Chartered Accountant) (4775 Points)
Replied 09 October 2010

For the Income Tax Return purpose only the Balance Sheet related to his business is to be shown in the Income Tax Return. No need to club the personal balance sheet with business balance sheet.