Profit & loss

sir kya hume sole proprietor k case k income tax ko p&l m deka saktai h
ki direct provision bnana hoga
Replies (5)
Quick Summary
This discussion explores how sole proprietors can account for their income tax within their Profit & Loss statements. While it's a matter of presentation choice, it's generally advised to make provisions. For ITR3 filings, direct disallowance might be necessary. A common and often simpler approach is to directly charge income tax to the capital account on a payment basis, avoiding potential complications.

Its your choice how you like to draw p&l. but in itr3 you have to disallow it.
Provision should be made but in companies balance sheet partners income tax should not be shown
It's better to put income tax directly under capital account on payment basis in case of a sole proprietor. This would avoid unnecessary complications of disallowance etc.

Usual practice is to take to make provision

Its your choice, how you like to present it.
people adopt different presentation styles. there is no single way of presenting it.

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