My personal Income tax return is filed U/s. 44AD as Contract Income. My net profit before tax is of Rs. 3 lacs for F.Y. 2020-21.
My query is what amount of Personal Drawings in Cash can I show in my books as I want to reduce my cash in hand balance. Is there any limit for showing personal drawings. I am not claiming it as an expense to reduce profit.
12 November 2021
There is no limit for withdrawal of cash as personal drawing, but it should be below the cash at hand in the books. At the same time it will reduce your capital in the business.
12 November 2021
One more thing... How can we reduce Cash in hand incase of an HUF assessee as Personal drawings I feel cannot be shown incase of HUF. The return is filed same way in 44ad section.
13 November 2021
One may utilize Cash of HUF for payment of Life Insurance premium of its members, education expenses of children, medical expenses, day to day household expenses of family. It is better to utilize cash of HUF for routine expenses .
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