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Related i.tax return

Anu Verma (Sr.Consultant) (87 Points)

08 May 2017

Hi, One of my client is a Property dealer and he has,t any current account and using only saving account. He gave the money of rs.20 lakh to one of his frnd in 2015 and now his frnd returning the amount with interest . My qustion is - How to get this money and how to file his I.Tax return.

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3 Replies

Studentsca (CA Practice ) (3577 Points)
Replied 08 May 2017

If the amount was given in cash then take it in cash only. However it was given by cheque then take it in the account from which the cheque was issued. You must have shown it in the balance sheet under the Loans and Advances. Just reverse it now.

Anu Verma (Sr.Consultant) (87 Points)
Replied 08 May 2017

Hi ,

His income is not eligible for audit and balance sheet and just I want to know what treatment to be taken at the time of I.Tax filling. becuase its not related current period and one more point keep in mind he has not filed any pervious returns it is first time.

Pls suggest as needed.

Thanks

Studentsca (CA Practice ) (3577 Points)
Replied 08 May 2017

He is a property dealer which means he is doing business. Persons having Income under the head business or profession are required to file ITR-3 where balance sheet is included. It has got nothing to do with audit.Only show interest income if it pertains to AY 2017-18 or else it is income of previous years only then no treatment required if this is the first return.