Income u/s 194J by a doctor.

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  1. B A KUMAR

    B A KUMAR New Member

  2. ZED

    ZED Well-Known Member

    "Say i dont claim depreciation.. Then what about the assets? Since the payments have been made from the bank for there purchases, i have to account them, like they will apper in the balance sheet. On their purchase cost. Is that so?? Or do you suggest some other treatment l??? PlZ be specific"

    You do not need to account them in your books mainted for business. The nature of the assets are that of personal use like geyser, fridge etc.

    Depreciation will be available only if the asset is used for the purpose of business/profession. But in this case asset is not of the nature to be used solely for the purpose of profession. Even if you try to claim depreciation then AO will disallow th depreciation.
    Further, you mentioned that now the assessee is deriving income from salary, therefore its better to ignore these petty items.

    Even the expenses you have mentioned are of personal nature, the deduction for the same is not allowed.

    I am advising you to not to treat them as business assets.
    B A KUMAR likes this.
  3. B A KUMAR

    B A KUMAR New Member

    I have now understood what you advised... Thank you so much for your precious time and advise. Just one thing you clear out to me. When i post enteries in tally from the bank account then purchase of laptop, purchase of two wheeler bike will come. How do i account this? I understand the fact that i must not charge depreciation in them, but they will apper in balance sheet. Is that ok?? Or shall i just write it off to cantal account by a journal entry. Plzz tel me accounting treatment for this. Hope you understand my exact query.

    All expenses that i mentioned are personal in nature, fine with that, they will come to PL account, shall i again write it off to capital by a journal??

    Or do i let the expenses appear in pl and assets appear in Blnc sheet,?? Will take no deduction for them..

    I am asking all these because i have to fill up ITR4 and i am now making the accounts, in itr4 all pl and bs items will go. So tell me exact treatment for that. I am very much clear about the taxation treatment, and thankful to you for the assistance.. PlZ clear out this query
  4. ZED

    ZED Well-Known Member

    No B A Kumar Ji, you are doing it wrong.
    You do not need to post entry in tally. See thats what I mean when I say do not account them and treat them as personal expense.
  5. B A KUMAR

    B A KUMAR New Member

    All assets have been purchased through cheque payment.
    I dont understand this. When i prepare accounts, then i post enteries from bank, purchases of those assets are from bank, then how will these enteries be posted?? How will i vanish it from the BS??
  6. ZED

    ZED Well-Known Member

    But you do not need to post the entries to begin with.
    When you buy milk, vegetables, shoes (be it expensive sport shoes), clothes(be it luxurious) etc do you post the entry in tally? Its the same here.
    The assets in your case are of personal nature, further its for a period of less than a year.
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