30 July 2008
Yes, cash equivalent to the income earned net of amount spent for personal expenses are your savings and so much of cash balance if found at home is always justifiable.
01 August 2008
Sir, Thank you very much.If you don't mind can you tell me in detail. i am having a cash balance accumulated nearly 35 lakhs from last 6 years which is reflected in it returns partly every year .But i have not deposited that profit in any bank , instead i kept in my house.This year i have invested that in my new business . My auditor is saying that you may have to pay tax as the IT Officer may not accept that cash as accumulated. So can you suggest me under which section of income tax act or any other acts , i can protest. Sir please quote me also any similar case where assesse has got relief.
02 August 2008
The cash balance which you keep with you that can be explained by your tax return is yours. There is no section need be qouoted in support of this.
CAclubindia
