3131
Thank you Mr. Nathrao. Taking it on cash basis - Is this based on specific wording in any rule/notification or is there any other justification for this?
From India, Delhi
From India, Delhi
What is the difference between cash and accrual system?
Under the accrual basis accounting, revenues and expenses are recognized as follows:
Revenue recognition: Revenue is recognized when both of the following conditions are met:
a. Revenue is earned.
b. Revenue is realized or Realisable.
Under the cash basis accounting, revenues is recognized as below:
Revenue recognition: Revenue is recognized when cash is received.
While filing IT returns,you must follow consistent pattern of income recognition.
Rent is an income which is received in advance and 12 month income can be easily shown in the return.(01 Apr -31 Mar)
Logically cash basis is the correct way to show rent income.
From India, Pune
Under the accrual basis accounting, revenues and expenses are recognized as follows:
Revenue recognition: Revenue is recognized when both of the following conditions are met:
a. Revenue is earned.
b. Revenue is realized or Realisable.
Under the cash basis accounting, revenues is recognized as below:
Revenue recognition: Revenue is recognized when cash is received.
While filing IT returns,you must follow consistent pattern of income recognition.
Rent is an income which is received in advance and 12 month income can be easily shown in the return.(01 Apr -31 Mar)
Logically cash basis is the correct way to show rent income.
From India, Pune
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HRA – House Rent Allowance.pdf
Rent Self Declaration.doc