please experts advice me in below situation:
1. i am filing my return u/s 44ad
2. my stock as on 31.03.2019 was Rs. 10 lakhs as per book and itr ( not preparing account stock wise)
3. now during year i came to know that due to software errors my stock was wrongly shown as Rs. 10 lakhs but actual it was Rs. 15 lakhs as in 01.05.2019.
4. my itr for f.y. 2019-20 is pending,
how to book closing stock with Rs. 15 lakhs and if i do so my profit in book will increase but i m filing return u/s 44ad , if i do so my income as per PNL and itr will not match and if i do so whether it can be valid .?
kindly help me in this critical situation.
I understand your tax concern, but the accounting concerns advises faithful representation of all transactions. So, it is mandatory that one has to rectify errors first and deal with tax consequences later.
CAclubindia
