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ITR filing

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Fayaz

Accountant

41 Points Posted on 29 October 2020

I have friend who has done the money transfer business for fy18-19 now he has received the IT dept notice to file the ITR for fy 18-19 and 19-20. my query is how to account this transactions as the money received are to be paid to beneficiaries? if we show this as business income do we need to prepare the p&l&BS for same?

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Quick Summary

This discussion addresses an individual who has received an IT department notice to file Income Tax Returns (ITR) for FY18-19 and FY19-20, relating to their money transfer business. The core query revolves around how to account for transactions where money received from clients is subsequently paid to beneficiaries, with a small commission charged for the service. Specifically, the user is asking if this should be treated as business income and if preparing a Profit & Loss (P&L) and Balance Sheet (BS) is necessary in such a scenario.