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Residential flat

175 views 6 replies

Mahesh Kapadia

194 Points Joined June 2019

When separate book of accounts are not maintained at that time while preparing balancesheet and profit and loss account to file ITR as a profession can I show Residential flat, Accumulated premium for LIC and shop owned by me on assets side of my professional balance sheet.

Replies (6)

Guest

Yes. You can prepare BS and Income Statements based on Information provided by the clients. But payment of premiums will be accounted in Income Statements as an expense.

Mahesh Kapadia

194 Points Joined June 2019

Lic premium is expenses or drawings?

Pawan Vemula

284 Points Joined February 2018

Lic premium is a capital expence debited to capital account .......

Mahesh Kapadia

194 Points Joined June 2019

Thanks

Eshita S Shah

Practicing CA

75 Points Joined May 2012

Yes you can show the residential flat (in the Asset Side) However no depreciation shall be claimed as its not used for business purpose. LIC Premium (Drawings from Capital Account in the books and in ITR show it under the Schedule Deductions under Chapter VIA for the premium paid during the year) and Shop Owned (In the asset side) and if you are using the shop for your own profession then you can provide for depreciation and claim the same).