I.t. query

Kollipara sundaraiah asked 2 months ago

Assess small businesses person.
Sales turnover finicial year:2018-2019 rs.69,00,000/-
Sales turnover finicial year:2019-2020 rs 80,00,000/-
Assess I.t. returns filed two years for the purposes of bank loan.
Question:
Assess How much amount  capital account opening balance and cash on hand opening balance  as on 01.04.2018 shown in I.t. returns under I.t. act.

4 Answers
Rahul Mehra answered 2 months ago

manipulation figures in books of accounts and income tax return for the purpose of bank loan is not good and never recommended. Assessee may be prosecuted for cheating…Always display actual figures. 

Kollipara sundaraiah answered 2 months ago

Sir,
Assess books of accounts not maintained.maximum and minimum amount capital and cash on hand opening balance introduced as on 01.04.2018 shown in balance sheet in I.t. act.

Kollipara sundaraiah answered 1 month ago

Question:
One of new small i.t. assess source of income repairs Works as a Goldsmith works.net profit rs.3,15,000/- f.y.2019-2020. balance sheet filed compulsory for the purpose of bank loan.
Question:
Assess how much amount capital and cash on hand opening balances introduced (minimum and maximum)as on 01-04-2019 shown in balance sheet (i.t.returns) in f.y.2019-2020.

Rahul Mehra answered 1 month ago

Please check your books of account, and show actual cash introduced as capital for the business…manipulation figures in books of accounts and income tax return for the purpose of bank loan is not good and never recommended. Assessee may be prosecuted for cheating…Always display actual figures….if books of accounts are not maintained then it may be calculated in following ways:-
 

  1. You may have to show sources of cash for the figures displayed. 
  2.  All print of bank statement of all the bank accounts related to your business and highlight all cash withdrawn and deposit entries. 
  3. make a list of all purchase and sale invoices. and highlight cash sales and cash purchases separately. 
  4. check your cash balance as on date. 
  5. To find cash balance at opening = current cash balance + all cash payments less all cash receipts + all cash deposits less all cash withdrawal.
  6. to Find opening capital follow following formula

Capital = All business Assets including cash & bank balance – liabilities – profits
First do all the above analysis and find the actual figures and record all the above detail and maintain books of accounts.

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