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income tax

(Querist) 24 March 2011 This query is : Resolved 
one of my client is a doctor and he has both salary income and professional income.
He has salary income from 2 institutes and professional income from companies to whom he provides services. The doctor in turn pays most of the income received to the doctors from whom he receives services and also expends certain amount to the patients. The professional consultancy is occasionally undertaken i.e the takes the job for this year and not for the next year. Whether his balance sheet is to be prepared and if so whether i can only show the details relating to professional income kindly help urgent
R.Ramachandran (Expert) 24 March 2011
It would be advisable to consult a Practising Chartered Accountant in this regard.
Anil Kumar-Advocate (Expert) 25 March 2011
Dear Mr.Santosh,
Since your client has received professional consultancy, hence you have to prepare a P/L a/c or you can also write as Gross receipt from Consultancy ---, Less : Allowable expenditure.Thus you will get an amount to be offerred for taxation.As regard Balance sheet is concerned, it an statement of Assets and Liability which you may draft as per your convenience and the information given by the client or make some exhaustive enquiry if you are filling his ITR on line. In the Balance sheet and P/L a/c you can shown any thing but in a wise manner and as per the accopunting standard.Anil Kumar-Adv.
soumitra basu (Expert) 02 April 2011
You can prepare the estimated profit and loss account and fill in ITR in no books of accounts maintained.

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