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Anjali Tiwari (CA FINALIST) (46 Points)

28 November 2016

HOW A PROPRIETOR CAN SHOW HIS HOUSE PROPERTY IN BALANCE SHEET IF HE HAS NOT SHOWN IT BEFORE IN ANY OF THE PREVIOUS FINANCIAL YEAR OF WHICH RETURN FILED

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Anjali Tiwari (CA FINALIST) (46 Points)
Replied 28 November 2016

Originally posted by : anjali
	HOW A PROPRIETOR CAN SHOW HIS HOUSE PROPERTY IN BALANCE SHEET IF HE HAS NOT SHOWN IT BEFORE IN ANY OF THE PREVIOUS FINANCIAL YEAR OF WHICH RETURN FILED

CA Parth Bhavsar (58 Points)
Replied 29 November 2016

simple...pass entry..

HousE property dr
to capital acct

1 Like

Hitesh Khanna (Accounting & Finance Taxation Company ) (839 Points)
Replied 29 November 2016

In ITR 4 the Department asks to fill the Profit n Loss A/c and Balance Sheet of the Businesss only.
So In case the property is the Proprietors personal wealth, he need not show it in the Balance sheet of the business.

Anjali Tiwari (CA FINALIST) (46 Points)
Replied 29 November 2016

if he want to show then/?

Hitesh Khanna (Accounting & Finance Taxation Company ) (839 Points)
Replied 29 November 2016

There is no flat rule that can be applied in all cases.
One has to concider the Time Span of the business of proprietor ie how old is the business, the purchase date of property, the amount involved and etc.

1 Like

CA Parth Bhavsar (58 Points)
Replied 29 November 2016

u cn show..dnt worry

1 Like

Anjali Tiwari (CA FINALIST) (46 Points)
Replied 29 November 2016

regardless of house property being personal wealth?

CA Parth Bhavsar (58 Points)
Replied 29 November 2016

yes..u cn show all assets which is personal n nt related to business. as u file ITR of proprietor n so that we cn consider all assets n liab of proprietor including personal.
If u dnt want to consider personally assets then also..dnt worry.
as per my view we should show all assets n liab.in ITR.

1 Like

Mukesh Kumar (Accounts Manager) (1466 Points)
Replied 29 November 2016

I THINKS YOU CAN NOT SHOW YOUR PERSONAL EXPENSES AND ASSET IN YOUR B.S. AND P&L A/C WHICH IS YOU HAVE USES FOR YOUR PERSONAL ACTIVTY AND DO NOT EFFECTE YOU BUSINESS.,,,,,,,,,, OTHER HAND, YOU CAN SHOW ONLY THE EXPESNSES AND ASSET WHICH IS USE FOR YOUR BUSNIESS ACTIVITY RUNNING ONLY AND EFFETE TO YOUR BUSNIESS Good Luck!

CA VIRAL SANGHVI (Finance head) (681 Points)
Replied 29 November 2016

As per my opinion show all the assets and liabilities in the balance sheet of properietor. Dont provide depreciation on personal asset.

You can show it in the balance sheet as capital contribution,but please keep supporting ready as when audit activity is done you have to show the proof for capital introduction.

Anjali Tiwari (CA FINALIST) (46 Points)
Replied 29 November 2016

Sir what type of supporting.please explain

CA VIRAL SANGHVI (Finance head) (681 Points)
Replied 29 November 2016

hi,

If you are showing the house property under the head investment the documents like legal deeds of house property index copy for the same.

Vaishnavi Ganesh (Chartered Accountant) (861 Points)
Replied 01 December 2016

You need proof like the purchase deed. And also proofs of sources fund used to buy that house property etc. In case if it amounts to holding of more than one house property provided you have offered deemed let out income from house property.

You can show it in business as capital contribution by crediting capital account with a debit to asset account.

No depreciation can be claimed on the same unless its is being used for the business purpose.

Incase if the assesse is required to fill in schedule AL, make sure you do not include the so introduced asset in that schedule.