Treatment of Income Declared in ITD Survey

Share This Thread
  1. Devender Thakur

    Devender Thakur New Member

    During Income Tax Department Survey an income of Rs. 1.0 crore was undisclosed. The Addition was in the form of difference in method of Stock Valuation. The Survey was conducted on 11th Nov 2013. Firm is an Partnership entity having 7 partners. As the income was added on 11th Nov 2013, We have to transfer the additional income to capital on the same date. How can we make this entry in the system (say Tally).
  2. jagmohan singh

    jagmohan singh New Member

    As far as i understand the addition was on account of excess stock in hand and on this basis Rs. 1 crore was surrendered. In this case there is unaccounted stock in hand
    which is to be brought into the books. For this u would have to make the following entry:

    create new account( Stock surrendered during survey) Dr Rs. 1 crore
    and Credit Capital A/c (of Partners in profit/loss sharing ratio) by Rs. 1 Crore

    When u show this in balance Sheet then increase closing stock by Rs. 1 crore
Draft saved Draft deleted
Similar Threads Forum Date
Income Tax treatment for Liaising work Income Tax Nov 18, 2017
LIC INCOME TAX TREATMENT Income Tax Jul 18, 2017
Treatment of F & O Loss in Income Tax Return for AY 2017-18 Income Tax Jun 23, 2017
Refund's Treatment in Income Tax Income Tax Dec 27, 2016