29 January 2013
dear sir how to calculate drawings for the purpose of b/s and calculate cash in hand when a assesse maintain file for the first time? provide a dummy account if posible. please help me thanks.....
28 July 2013
It depends on the number of persons in the family and also it depends on the place of residence. If it is in town then more drawings and if it is in village then less drawings. If in Mumbai then sky is the limit for drawings.
At the same time you have to consider the amount of income the person is having. The drawings cannot exceed the income except under special circumstances which will reduce the capital.
For Income Tax Purpose the drawings of the entire family is to be considered. The drawings include LIP, Tax paid, Expenses,personal travelling, personal telephone bills etc.
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