Itr 4 balance sheet

yes.  If the accounts are to be maintained under 44AA, then filling the complete balancesheet and Profit & loss Accounts is compulsory.

Thanks, Nikhil.

Since he is filing for AY – 2012/13 (and also 2013/14), under which section should the returns be filed? Should it be 139(4)? Will 139(4) still be applicable for 2012/13?

Also, regards Balance sheet, they say that debits and credits must balance each other out. For the following, what parts of the BS may be applicable:

1. Income generated solely by adsense/paypal. Can this form part of the “Proprietors Capital”?
2. No loans, no fixed assets.
3. Only mutual fund investments (debt/liquid fund). The nature of the investment is short term, but the only options provided are equity shares, preference shares, and debentures. Can this be therefore be classified as “cash-in-hand” or “balance with bank”?
4. The only expense associated with the profession is a laptop/printer/scanner/modem/wifi along with secondary expenses – yearly electricity and internet charges. Can these be shown as Sundry Creditors?

1.  For both the assessment years, return shall be filed under 139(4).

2.  On the asset side, put the cash balance, investments etc.

3.  Investments may be shown as "Other Current Assets"

4.  If there is no loan, then total of the asset side will be balanced by credit side in "Proprietor's Capital"

Thank you so very much, Nikhil.

So, proprietors capital may include  the entire credit side, including sum of all investments, assets etc., which is to be balanced with “Total, application of funds.”

Can you let me know if there are any red flags in this example for AY 2012/2013:

1. Proprietors Capital – 5,50,000. This includes the person’s complete finances, investments in MF’s etc., bank balances, earnings, etc.
2. Other current assets – 4,15,000. Mutual fund investment – short term debt fund.
3. Balance with bank – 15,000. Balance at the end of the financial year 2012.
4. Cash-in-hand – 1500. Rounded up after transporting Profit and Loss account/Accumulated balance.
5. Profit and Loss account/Accumulated balance – 1,18,500. Obtained after taking into account all gross receipts, other income, and expenses from P&L A/c.  

Is it ok to show 5,50,000 (which is the persons savings from previous years) in Proprietors Capital, even though gross income from profession for this year (2011-2012) is only 1,50,000? Does it create any tax discrepancy anywhere? Will he have to show Short Term CG just to be on safe side?

Earlier mentioned expense for equipment, electricity tariff, and internet charges are included in P&L, not BS. My error!

Hi all,

In the process of completing 2012-13 returns, had a quick question. Can medical insurance premium be deducted for a return filed under 139(4) for 2012-2013?

Hi all,

Clients do not provide Balance sheet and only bring P&L a/c to file return and I also found out that the return gets validated and uploaded even if balnce sheet details are not entered. Is it correct or not? does it causes any future penalties or notices?

Please help in this matter as confused a lot.

I have seen IT notice under 139(9) error code - 31 for filling the P&L but leaving Balance Sheet empty.

How to reply then to notice u/s 139(9) of this problem???

Broadly, we need to fill in both the P&L and BS sections in the ITR4.

Broadly, we need to fill in the sections for P&L and BS (both).

I'm trying to fill in BS as well. See the post "Notice received under sec 139(9). error code:31" on this forum.

But most of the returns are processed as such and even refund is issued. So is it compulsory to enter details of BS and P&L both or only P&L.