Please Help: RETURN & CASH IN HAND
Posted Date : 13-Oct-2011 , 10:47:50 am | Posted By sumit garg
Good morning
Please solve quary of my friend , His wife is not working anywhere and she is house wife but she has professional qualification like MBA ( FINANCE ) & MSC ( MATH ) , she is doing tuitions at home and her monthly income from tution is around 5000-10000
We are thinking to file her return of income from this year , some one guide me to create cash in hand and also file the return so guide me on following
1. In which head I book her income because I think tution income must be covered under income from other sources and if I want to prepare the balance sheet & Profit and loss also then how we can prepare it and can I book her income in profit and gain head . I need profit and loss and BS for future because she need to plan housing loan from bank and for that purpose she need balance sheet and profit and loss
2. How we create cash in hand ( BAAKI - in business language ) in books
Please solve quary of my friend , His wife is not working anywhere and she is house wife but she has professional qualification like MBA ( FINANCE ) & MSC ( MATH ) , she is doing tuitions at home and her monthly income from tution is around 5000-10000
We are thinking to file her return of income from this year , some one guide me to create cash in hand and also file the return so guide me on following
1. In which head I book her income because I think tution income must be covered under income from other sources and if I want to prepare the balance sheet & Profit and loss also then how we can prepare it and can I book her income in profit and gain head . I need profit and loss and BS for future because she need to plan housing loan from bank and for that purpose she need balance sheet and profit and loss
2. How we create cash in hand ( BAAKI - in business language ) in books
Category : Income Tax | Answers : 1 | Comments : 1 | Hits : 356
Answers
Answer By: Ashish Karundia
Dear Sumit,
Your understanding is correct that you can book the income under the head 'other sources'. Further, there is no restriction that a person who earns income under the head 'other sources' can't prepare Profit & loss / Balance Sheet. In other words, such persons can also prepare the Profit & Loss / Balance Sheet.
Further, Please clarify your second question.
Your understanding is correct that you can book the income under the head 'other sources'. Further, there is no restriction that a person who earns income under the head 'other sources' can't prepare Profit & loss / Balance Sheet. In other words, such persons can also prepare the Profit & Loss / Balance Sheet.
Further, Please clarify your second question.
Comments
GAURAV GUPTA
15-Oct-2011 , 08:47:09 pmThe income of tution can be taxed under pgbp also. You can make Capital account & balance Sheet of your wife. There is no logic of making p/l a/c for bank loan.