1. There is no need to maintain bills for personal expense as it is already disallowed.
2. All personal assets are to be shown in the balance sheet, this balance sheet is of you and not only for business.
Bills
Iam having a business propitorship and its under audit.., so my question is that i have maintained all the accounts sale purchase bills of the what i need in business and maintained the business balancesheet but my personal drawings from business i use to buy personal goods at home but i dont keep the bills of electronic goods and other items suc as ac tv fridge which i use at home.. so it is mandatory to keep the bills of personal items used and maintain the personal balancesheet of my personal assets and show then in Incometax audit return? Is it mandatory? Bcz i never keep the bills of item i purchase for personal use insted i show that amount as drawings in business balancesheet 2- my business is propitorship and under audit so do i have to show my personal home, land and assets which I don’t use in business in the balancesheet of business.? Do i have to show all my personal goods in business balancesheet?
Asked 5 years ago in Income Tax
Hi,
No, its not mandatory to put personal assets in your return and not required to keep bills for personal drawings.
You may choose to file only business balance sheet.
Hi,
1. No, it is not mandatory to keep the bills of personal items.
2.Not its not necessary to show personal belongings in the Sole-proprietorship Balance Sheet.
Only the Assets and Liabilities related to Business are shown in the Balance Sheet of the Sole-Proprietorship.
Hello,
Bills for personal expenses won't be required to be maintained but details of personal assets would be required to be declared in the Balance Sheet and Income Tax Return.
I hope that this answer satisfies your requirements.
Regards,
CA Hunny Badlani
Hii,
there are two things
1 Business Balance Sheet which is subject to Tax Audit
2 ITR
in business you have to show only business transactions but while filling ITR you have to show your own details (Business as well personal details or can say bs and profit and loss details belongs to your pan)
for more details and details i suggest you for telephonic discussion.
Without maintaining personal assets bill how would i declare the personal assests value in balancesheet..? And also there r numerous personal assests such as home appliances kitchen appliances tv fride ac car scooter water purifiers and many also.. how I suppose to maintain the bills of those personal equipment and declare in Incometax balancesheet..? How it is feasible?
Asked 5 years ago
Hii
Good Morning
you can maintain large assets such as car , properties, jewellery , valuable paintings if any
ignore others
You should be maintain bills of assets with high value, assets which are material to your balance sheet.
you can ignore home/ kitchen appliances, but you must be having bills of car, scooter, AC etc.
Hi,
The requirement to maintain books of accounts is only with respect to income from business and profession.
Thus, it doesn't apply to personal assets.
Further, if your total income exceeds 50 lacs in an year, you need to disclose details as per Assets & Liabilities schedule.
You can just show business asset in your audited financial statement.
Its not compulsory to include all personal assets in your balance sheet.
Hope you find the information helpful if you do please rate it 5 and provide your valuable feedback for my improvement.
Thank you.
It's not necessary to show personal belongings in the Sole-proprietorship Balance Sheet.
Only the Assets and Liabilities related to Business are shown in the Balance Sheet of the Sole-Proprietorship.
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