| Question And Answer | |
|---|---|
| Subject: | handle multi business balance sheet |
| Category: | Income-Tax |
| Querist: | kollipara sundaraiah |
| Answered by: | Law Intern |
| Tags: | ITR-3 |
| Date: | June 17, 2025 |
sir,
I need some clarity regarding ITR-3 filing for a combination of incomes and business activities. Here’s my situation:
- Filing ITR-3
- Sources of income:
- Salary
- Intraday trading (treated as speculative business)
- STCG from equity delivery (as a capital gain and not as a business)
- A separate business (as sole proprietor) with regular income and expenses
Doubts:
- Personal Loan Disclosure:
- I had taken a ₹ personal loan from a bank during the year Feb 2024.
- It was used only for trading and equity investments, not for my sole proprietorship business.
- Do I need to show this loan in the Balance Sheet section of ITR-3 FY 24-25?
- If yes, should it go under the trading business only?
- Multiple Businesses in ITR-3:
- Since I have two separate businesses (sole proprietorship + intraday trading shown as business), do I need to report separate Balance Sheets and P&L for each in ITR3?
- Should I add two separate business codes under the “Nature of Business” section?
- Missed Loan Disclosure Last Year:
- I forgot to mention this loan in last year’s ITR balance sheet.
- I didn’t claim any interest expense on it.
- What should I do now? Should I revise the return or just include it in the current year’s ITR with proper notes?
Additional Notes:
- I am not opting for presumptive taxation.
- I keep books of accounts for both businesses.
- No interest expense was claimed last year, but I may claim interest in the current year.
1. The personal loan has to be disclosed in the ITR-3 Balance Sheet (Schedule BS). ITR-3 requires a complete Balance Sheet for individuals with business or professional income, including all assets and liabilities, whether personal or business-related.
2. As the two businesses are separate, you should maintain separate books of accounts (including Balance Sheet and P&L).
3. As no interest expenses is claimed, there is no adverse tax impact. However, if the amount is substantial, it is better to file a revised return. Otherwise, it can be only included in the current year.
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