REQUIREMENT OF COMPUTATION OF BUSINESS BY INSURANCE COMPANY

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A C

3 Points Posted on 18 January 2023

I am having a business of Health Services (clinical psychology counselling) and my Income is approximately INR 10 LPA. I am a 28 year old professional. I have filed income tax returns using ITR4 (For Individuals, HUFs and Firms (other than LLP) being a resident having total income upto Rs.50 lakh and having income from business and profession which is computed under sections 44AD, 44ADA or 44AE) for last three years. I am trying to propose a Term Plan for myself with an insurance company which is asking for computation of my income. Can my ITR4 (Sugam) be enough as a documentary evidence showing computation of income, as I do not have the same computed through a CA as my income does not fall in the auditable slab? Thanks for your comments and replies in advance.

Replies (2)

Dhirajlal Rambhia

SEO Sai Gr. Hosp.

211715 Points Posted on 18 January 2023

ITR 4 is not sufficient for requirement by the insurer... You need to prepare financial statements based upon the income filed as per ITR details...

A C

3 Points Posted on 18 January 2023

Thanks Mr. Rambhi for your reply. I can prepare the statement for last three years, but can you please let me know if a simple MSExcel statement will be enough? Do I need to get it endorsed by some CA as my business income is merely 10 LPA and as per IT Act, I am not required to get the account books audited. I am maintaining a personal book of daily income (earned into my savings account against counselling fees) and expenses incurred for maintaining my counselling business. Will a simple income versus expenditure balance table suffice for this purpose (for past three years)?