How to add your Trading Goods/Services Business?

Running a business is exciting! But come tax season, things can get a little complicated. This guide will walk you through how to report your income from your proprietorship business, whether you're trading goods, manufacturing, or providing services. 

If you have trading income from futures & options or intraday, you can refer to this article on how to add them.

Head over to File> Incomes > Business & Profession > Add business and select one from “Trading Goods” and “Services”. The process of adding both these incomes is same, so you can follow these steps to enter either of the two.

Determine your applicable Taxation Scheme

After selecting either of the business, you will have to select the taxation scheme applicable to that business

1. With Books of Accounts: If you have maintained your Profit & Loss accounts, Assets & Liabilities select this
2. Without Books of Accounts: If you have not maintained these and your turnover didn’t exceed 25 lacs in any of the previous three financial years, select this
3. Presumptive Scheme: If you have not maintained books of accounts and your revenue didn’t exceed 2 crores you can opt for this.

Keep in mind, if you opt for presumptive, you will have to report minimum 6% of your gross receipts (received digitally) as your income. For more info click here.

Adding details of the business

Now that you have decided which taxation suits your business best, lets add the details of your business

1. If your business is GST registered choose ‘Registered’ and add the GSTIN & GST Revenue
2. If not just add the name of your business and save
3. Choose your business category and sub category from the list of options available
4. Add the address of your business

Adding business income

In case of a business with books of accounts, you will have to provide the following details -

1. Total Sales
2. Other Incomes
3. Opening Stock
4. Total Purchases
5. Closing Stock
6. Direct Expenses
7. Indirect Expenses

Based on these numbers, we will calculate your cost of goods sold and gross P&L.

In case of business without books of accounts, you will only have to provide these details -

1. Bank Revenue
2. Cash Revenue
3. Gross Profit

Adding Expenses

After you have added your income details, press on the Expenses tab and you will be able to add these details-

1. Expense head
   • Sub head
2. Description
3. Amount

You can't claim expenses if opting for presumptive

Adding Assets & Liabilities

Lastly, you will have to add details of your business assets and liabilities. Press on the Assets Liabilities tab on the top bar and start by adding your assets

• You will be able to add your fixed assets, investments, current assets and other assets
• After this, move on to liabilities and add details of reserves, non current and current liabilities.

Based on the assets and liabilities you enter, we calculate the Proprietors capital field for you.

That was quite a bit, but we are done now. Get a gist of all you have added from the summary tab. You will be able to see your taxable income, P&L Statement and the Balance Sheet. If you're stuck or facing any issues, our support teams got your back, contact them here.