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Tax Treatment (Investment)

27 May 2022

One time Investment in March 2021 Rs.- 50000/-

Monthly Return - 4450 for 2 years

1st Year total Amount received till March 2022-Rs.53400/-

1) Kitna amount taxable hoga in March 2022 ???

2) Investment value kitna show karna hai Balance sheet (2022) ???

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6 Replies

Kesavaraj S (578 Points)
Replied 27 May 2022

You have to show ROI Rs.53400/- as earnings of Mar'22 on accrual basis and show the Investment Value in Balancesheet as Rs.103400/- because you can withdraw after the completion of reqd period...

CA Rashmi Gandhi (Chartered Accountant) (86220 Points)
Replied 27 May 2022

1) Taxable amount will be 28400 i.e (53400 total value -25000= 50% of invested value)

2)Show in Balance Sheet only investment value of Rs 25000

Reply May differ from person to person in this scenario.

sabyasachi mukherjee (25931 Points)
Replied 28 May 2022

One time investment in mar 2021 in balance sheet -50000
monthly return-is shown as income in income as 4450 this will add up to 53400.If last month interest not received then show it under accrues income. Add to investments.
After completion period you can withdraw. If it's an insurance then after completion of certain period it will be done.
Sec 10

CA Rashmi Gandhi (Chartered Accountant) (86220 Points)
Replied 29 May 2022

Completely disagree on this matter with you sabyasachi

sabyasachi mukherjee (25931 Points)
Replied 30 May 2022

It is as per schedule VI COMPANIES ACT 2013. SO U DISAGREE WITH COMPANIES ACT.

rama krishnan (12234 Points)
Replied 31 May 2022

In my opinion, it is similar to lending amount and recovering the same in the form of emi. so apportion the principal and interest components accordingly and reflect the same in bs and pl account. my view is not based on any accounting standards but purely on rationale thinking