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Mutual funds purchase in itr

Garvit Jain (Student) (26 Points)

31 July 2019

Hello. I have SIP and lump sum investments in mutual funds. The same are in profit but I have not yet realized them. Do I need to report them in ITR 4 as I am in business? Also, I have fixed deposits. Do I have to show only interest? Thanks in advance.

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5 Replies

Kapadia Pravin (17264 Points)
Replied 31 July 2019

show business related assets and liabilities. 5 items are mandatory

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Suresh Thiyagarajan (Student) (3986 Points)
Replied 31 July 2019

1. Investments are to be shown only if you have realized the profit on the same. In other words, only at the time of cashing income to be reported and tax on the same shall be paid.
2. With respect to interest on FD income, the same shall be shown on an accrual basis.
Please correct me if the above solution has an alternative view.

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Saket Mishra (367 Points)
Replied 01 August 2019

@ suresh, exactly correct..........

2 Like

Garvit Jain (Student) (26 Points)
Replied 01 August 2019

Thank you so much. As I am in business, will I also have to report the investments in my balance sheet as pointed by Mr. Pravin Kapadia?

Garvit Jain (Student) (26 Points)
Replied 01 August 2019

Thanks sir. If I show these as assets, will the interest on FD and profit on sale of mutual funds be shown as business income or I will still have to show in other sources? Originally posted by : Kapadia Pravin
	show business related assets and liabilities. 5 items are mandatory