Balance sheet
This query is : Resolved
02 October 2017
CAN WE SHOW RS.793000 AS A CASH IN HAND IN BALANCE SHEET ARE WE FACE ANY NOTICE FROM IT DEPT BY DOING SO.
02 October 2017
quite likely to receive the notice asking for explanation.
03 October 2017
You can show that much cash but if it varies very much from yiur last return or upcomjng return then there is chances of notice.
03 October 2017
Thank you very much.
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03 October 2017
Welcome..........
08 October 2017
Why cannot a firm, Bank and businessman keep cash balance as his wish? There is no provision which limit cash in hand.
For an overview of Constitutional validity of private property see : http://ccs.in/internship_papers/2002/25.pdf
It is worth mentioning that Hon'ble Supreme Court has expressed its concern on the removal of "right to property" from fundamental rights.
For an overview of Constitutional validity of private property see : http://ccs.in/internship_papers/2002/25.pdf
It is worth mentioning that Hon'ble Supreme Court has expressed its concern on the removal of "right to property" from fundamental rights.
08 October 2017
thanks sir
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08 October 2017
no bar as such in keeping high cash balance.......
As per the scrutiny norms, a high cash balance is likely to be selected for scrutiny.
As per the scrutiny norms, a high cash balance is likely to be selected for scrutiny.
08 October 2017
Is there such a norm prescribed by cbdt,sir?
08 October 2017
every year the guidelines are laid down by CBDT. In addition the jurisdictional A.O. has the power to select the cases for scrutiny.
http://www.itatonline.org/info/cbdt-guidelines-for-selection-of-cases-for-scrutiny-during-fy-2017-18/
http://www.itatonline.org/info/cbdt-guidelines-for-selection-of-cases-for-scrutiny-during-fy-2017-18/
08 October 2017
Heavy cash balance is not a reason for selection for scrutiny? Any such instance, please?
08 October 2017
yes,it is a regular practice at Assessing Officer level.
Cash in hand, in excess of Rs. 50,000 in case of an individual and HUF.........remember this provision under wealth tax act? In fact that is the reason why AO is prompted to issue notice for heavy cash balance.
Cash in hand, in excess of Rs. 50,000 in case of an individual and HUF.........remember this provision under wealth tax act? In fact that is the reason why AO is prompted to issue notice for heavy cash balance.
08 October 2017
Heavy cash balance denotes increased cash inflow sans low cash outflow which is reflected in the B/S. This is quite natural in business as well as profession. Hence not to worried about. Possibility of issuance of notice by AO only on the basis of heavy cash balance is illogical in case there is no tax evasion suspected which is evident from the B/S. I do’nt think Department will encourage if selection for scrutiny is made only because of heavy cash balance in the absence of reason to suspect tax evasion.
09 October 2017
yes, you are absolutely right....
unfortunately though, the intelligence of our revenue department does NOT think so...
unfortunately though, the intelligence of our revenue department does NOT think so...
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