satya narayana (Student CA IPC / IPCC) (124 Points)
17 April 2014Dear All,
If a company has huge cash in hand balance at the end of the financial year, is that company required to pay any tax on that cash in hand balance at the end. If not is there any problem of having such huge balance, what are the consequences?
Please reply as early as possible
CA Gaurav Mittal
(Partner)
(1230 Points)
Replied 17 April 2014
well there is no tax on cash balance appearing in balance sheet at the end of Fy.
and there are no consequences to that but it is advisable to keep cash balance as commenserate to the size of business as any excess would draw suspesion.
CAclubindia
