Capital and cash on hand introduced, Income Tax

[Sundaraiah kollipara]

Sir,

One of new I.t. person strated new business from 01-04-2019 retaile trading for kirana stores.i. t. return filed 2019-2020 f.y. for the purposes of bank loan.

Sales turnover finicial year :2019-2020 rs 25 lacs.net profit rs.3,10,000/-

Question:

Assess How much amount capital and cash on hand minimum and maximum limit of opening balances introduced as on dt.01-04-2019 shown in balance sheet (I.t. returns) under I.t. act

Posts / Replies

[YAGAY andSUN]

In our view it should be at Actuals and Cash in Hand at any given point of time must match with your books of accounts.

[Sundaraiah kollipara]

Sir,

Assess sales and purchases transactions entries passed in ledger book maintained only.

Capital introduce rs.5,00,000/-

Cash on hand balance rs.5,00,000/-as on 01-04-2019 accepted or no.

[YAGAY andSUN]

You need to show the source of cash, it must be mentioned in your books of accounts and duly accounted for in your Tax Returns.

[SHARAD ANADA]

GUJARAT HIGH COURT

M/S. CERA SANITARYWARE LIMITED VERSUS STATE OF GUJARAT & 1 OTHER (S) = 2020 (7) TMI 445 - GUJARAT HIGH COURT