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Two Balance sheets for a assesse having both proprietary business income and professional income

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Vimala

ipcc

34 Points Posted on 06 October 2021

A friend of mine is a Novel writer who earns royalty income of Rs.20 lacs digitally on entering an agreement with a Digital Book publishing company after deducting TDS of 10% U/s 194JA.

The same person is also earning commission receipts of Rs.8lacs on entering an agreement with Logistic Company after deducting TDS of 0.75% U/s 194C.

She is maintaining Bank accounts for both business and profession separately and is not registered under GST for her proprietorship Business.

Do I need to prepare separate Balance sheet for Business and Professional income?

Or Can I prepare two Profit and Loss Statements and a Consolidated Balance sheet for IT Purpose?

Your replies are highly appreciable. Thank you all

Replies (3)

Quick Summary

A novelist earning royalty income and commission receipts is unsure whether to prepare separate balance sheets for her business and professional earnings. While separate bank accounts are maintained, the question is whether separate financial statements are required for tax purposes. The consensus suggests that one consolidated balance sheet and profit & loss statement should suffice, with income sources clearly delineated.