PERSONAL TRANSACTION IN RETURN OF INCOME

ITR 528 views 2 replies

I AM HAVING A PROPRIETORY BUSINESS AND PREPARING THE BALANCE SHEET  OF THE BUSINESS.  ALSO I AM HAVING OTHER INVESTMENTS IN SECURITIES AND PROPERTIES. 

IN THE RETURN OF INCOME FORM 4  THE DATAS OF THE BUSINESS IS ONLY SHOWN AND IN BALANCE SHEET AND PROFIT AND LOSS ACCOUNT.  NO PERSONAL ASSETS AND LIABILITIES ARE SHOWN.  MY AUDITOR SAYS THAT PERSONAL ASSETS SUCH AS RESEDENTIAL HOUSE, AGRICULTUREAL PROPERTY, GOLD, SILVER, VEHICLE ETC.,  ARE TO BE FURNISHED [STATEMENT OF AFFAIRS] ONLY WHEN IT IS CALLED BY THE INCOME TAX AUTHORITIES.

WHETHER AUDITORS VIEW IS CORRECT AND WHETHER BOTH PERSONAL AND BUESINESS TRANSACTIONS TO BE SHOWN BALANCE SHEET OF ITR RETURN.

PLEASE.

THANKS IN ADVANCE.

Replies (2)

IT IS ADVISABLE FOR THE ASSESSEE TO MAINTAIN A PERSONAL BALANCE SHEET. BUT WHILE FILING THE RETURN YOU CAN DISCLOSE ONLY YOUR BUSINESS BALANCE SHEET.


REGARDS,

DEVENDRA K

Your auditor's view is correct.

Only your business transactions & capital contribution by you will be in your IT Return. You should maintain all your accounts properly along with your capital account.

Your personal property information will be required to be explained only when asked for by the IT Authorities but nevertheless you should be able to explain the source of all your personal assets.


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