Does business particulars need to be accurate for presumptive taxation? Why IT Department asks for it and what does it concludes from that?
Mandatory business particulars need to be accurate for presumptive taxation while filing income tax return.
Tax payer should report business name, business activity etc in the return. IT Department can verify the genuineness of one’s business or profession and accordingly assess business incomes & tax liability.
Thank you @Kaushal_Soni for responding to the Q. Indeed, there should be accurate reporting of the Business name and activity.
But here I am referring to the Financial Particulars of business, Like the Sundry Creditors, debitors, assets liabilities, Balance with banks, all these needs to be accurate and exactly matching? As it’s presumptive B&P, its hard to keep all the records and compile financial particulars for the B/P.
Hey @Scalperji ,
In presumptive income case, there is no need to maintain regular books of accounts as well as no reporting of financial particulars in Balance sheet schedule under ITR-3.
You can report mandatory financial particulars such as debtors, cash balance, creditor etc. in 'No Accounts Case" tab in Balance sheet schedule under ITR-3.
Hope, it helps!