Fees collections credit bank joint account

Question BankCategory: OthersFees collections credit bank joint account
Kollipara sundaraiah asked 1 year ago

Sec 44ada provision professional income I.t return filed two I.t. individual persons
1.some fees collections from patients receipts through on jointly bank current account credits
2.some payment  transactions personal withdrawals through on jointly bank account debited for two persons.
1.bank current account balance show in balance sheet for 1st person or 2nd person and both persons show in I.t returns.
2.fees receipts collections and cash payment withdrawals for personal transactions how to show producer in books and  how to accounting entries passed.

1 Answers
Aditya answered 1 year ago

From AY 2015-16, it has become mandatory for the taxpayers to provide the details of all the bank accounts held by them in India including the accounts with joint names.  Hence the joint account should be shown in the ITR of both the persons. 
The point is that two professionals are receiving fee receipts in a joint account. But there are filing their individual ITR as per provision of section 44ADA. 
If two professional are maintaining joint account for the professional receipts then there must be sufficient evidence to show the receipts of each person separately. But it is recommended that they should maintain separate account for their professional receipts or they can maintain a partnership firm for their profession with single account in the name of firm. 
Accounting entries for fee collection (for two professional X & Y) :-
Bank A/c Dr. 
To Fee for Mr. X.
To Fee for Mr. Y
Accounting entries for fee exp, payment, withdrawal (for two professional X & Y) :-
Name of Exp (Mr. X) A/c Dr. 
Name of Exp. (Mr. X) A/c Dr.
Mr. X (for withdrawal by x) Dr. 
Mr. Y (for withdrawal by Y) Dr. 
To Bank Account.

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