How to show Income received in advance

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  1. Raj123

    Raj123 New Member

    Dear Experts,

    I have following queries:

    1. If nature of income is "Profits & Gains of Business or Profession", so in this case if Person A has received some income in advance. So this is advance income, right? Also, do we mention somewhere that whether we are following accural basis OR cash basis in ITR 4, if YES, then where we specify that? If this income can be recognised as "advance income", then please guide me, where we can specify/show in ITR 4, so that it is clearly visible that this amount of advance income & will be considered as income in next AY.

    2. Also, if somebody has given gift to relative, for ex: 5 lac then Where we need to show same in ITR 4 OR it's not required to show in ITR?

    It's a exemption case (blood relative).
    Last edited: Dec 7, 2014
  2. gaurav_kumar

    gaurav_kumar Well-Known Member

    1. The advance received would be taxable in the year in which the services are provided.
    2. The gift received would be exempted in the hands of the person receiving the gift. The person receiving the gift would be required to disclose the same in the income tax return. Kindly refer this link on how to disclose the exempted income in the income tax return -
  3. Raj123

    Raj123 New Member

    Also, one more query:

    Can husband can give interest free unsecured loan to wife? If Yes, then How much can be of that amount & also what are the documents needs to be maintained, if needed?
  4. gaurav_kumar

    gaurav_kumar Well-Known Member

    Yes, husband can give interest free loan to wife. No maximum limit of giving loan
  5. gaurav_kumar

    gaurav_kumar Well-Known Member

    The gift received is required to be mentioned in EI Section in Others Section only.

    There is no other place to disclose the exempted income.
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