Source of funds in IT returns

To briefly encapsulate the solution, capital withdrawals or loans from a firm do not appear in the income computation of an ITR but should be tracked in a personal balance sheet, whereas any distributed share of profit must be declared under Schedule EI. Ensuring that the firm's ledgers exactly match the partner's bank statements is the primary mechanism for explaining the source of these funds to the tax authorities.

To prevent any notice in future for source of funds how to inform them in returns