SIR/ i am working in central govt public sector organisation getting an annual income of around Rs.1500000/ to Rs.2500000 pa including bonus and salary for past 10years I have been paying income tax regularly. Is there any possibility of arriving at cash onhand now. i have availed housing loans. Can i repay all my loans personal and housing loans putting cash in my sb account since i have enough surplus on my earnings availing the cash after demonitisation.. ..
Dear Sir,
If it is your genuine money withdrawn from your bank account, then it's not a problem if you deposit it back in the bank account or pay off your loan.
But a genuine doubt may arise that if a person is having surplus cash in his hand why would he take a loan from the bank and pay interest on it.
Please feel free to call me in case you want to discuss this in detail.
Thanks and Regards
Abhishek Dugar
CA CS B.Com
I am working as development officer in lic india and i have team of 70 agents.Can i use the logic that to facilitate my agents to do good business and support them financilally who requires money to meet the short fall when customer asks for rebate and agent may not be having the enough cash.. so i have put all the cash on hand money with be and not in bank....i have also cash credit (OD) account of 25 lacs in bank which i have used alll the limits....now i want to replenish the od amount cash and pay all the hosing loans ...is it acceptable proposition for income tax Ao
Even if you use this logic(which sounds not so strong to me), you have to show that much withdrawal from yourr bank accounts. Say if you have 20lacs in cash. You have to show at least 40lacs withdrawal in last 6-7 years.
Then you can say you have saved 20lacs and 20 lacs you have speneded for your family's living expenses.
Feel free to calle to discuss in more detail.
sir, i have drawn all amounts in account as and when it comes and no balance is left... and in my income tax returns unfortunately cumulate cash on hand is not mentioned ,,,even then shall i repay all the money to my od account and housing over a period of next 40 days?
I think ur answer is answered by our another professional. Thus if for further answers u can mail us on modani005@gmail.com
Dear Sir,
You should prepare cash flow and revise the ITR of Last two years.
Fort any further clarification feel free to contact us.
Hello Sir,
It will be difficult to convince as to why would someone keep huge cash balances in his house when he already holds bank accounts. Firstly it is risky to hold cash balances, secondly you loose out on interest. So you will have to come up with a strong reason as to why would someone keep high cash balances.
Trust this clarifies your query.
Feel free to call / get back in case of further clarifications.
Thanking You.
Regards,
Rohit R Sharma
BCOM, ACA, LLB-GEN, CERT. FAFP
