The necessity of drafting a balance sheet for real estate agents in India isn’t a straightforward matter with a simple “yes” or “no” answer.
It hinges on several factors, including the real estate agency’s size, structure, the nature of its property transactions, and the legal stipulations of the operating state.
In broad terms, real estate agent registered under the Real Estate Regulatory Authority (RERA) must uphold bookkeeping and formulate financial documents, which encompass a balance sheet.
However, exceptions do exist. For instance, individual real estate agents without employees, engaging solely in non-commercial property deals, might be exempt from maintaining financial records.
Nevertheless, even when financial records aren’t mandatory, maintaining them is a prudent practice. A balance sheet serves as a valuable snapshot of the agency’s fiscal well-being, aiding in sound business decision-making. Moreover, lenders or investors might require a balance sheet when the agency seeks financial backing.
To visit: https://www.incometax.gov.in
If you are an Indian real estate agent, it’s advisable to consult with a legal expert or an accountant. They can determine whether you’re obligated to maintain financial records and prepare statements, including a balance sheet.
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