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Negative bank balance where to show in ITR

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ADNAN HUSSAIN

Student CA IPC / IPCC

131 Points Posted on 22 July 2020

Hello,

i have 2 bank accounts in my firm.

As per books of accounts, in one account i have Rs. 18000 balance and in another i have Rs. 110000 negative balance... So how shall i show it in ITR?

1. Whether to show net effect as Rs. 92000 as loan from banks

2. Shall i Show Rs. 18000 as bank balance under applications of funds and Rs. 110000 as loans from bank.

Please guide which will be appropriate????

Replies (2)

Quick Summary

This discussion addresses how to correctly report bank balances in an Income Tax Return (ITR), particularly when one account has a negative balance. The user seeks guidance on whether to show the net effect as a loan or to report the positive balance as an asset and the negative balance as a liability. The consensus suggests showing positive balances under current assets and negative balances under current liabilities.

Ravi SADhiyan

Practice

3087 Points Posted on 22 July 2020

Originally posted by : ADNAN HUSSAIN
	Hello, i have 2 bank accounts in my firm. As per books of accounts, in one account i have Rs. 18000 balance and in another i have Rs. 110000 negative balance... So how shall i show it in ITR? 1. Whether to show net effect as Rs. 92000 as loan from banks or 2. Shall i Show Rs. 18000 as bank balance under applications of funds and Rs. 110000 as loans from bank. Please guide which will be appropriate????