• How to arrive at cash on hand figure for employees?

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..
..
Asked 1 year ago in Income Tax from Vijayawada, Andhra Pradesh
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If it is your genuine money withdrawn from your bank account, then it's not a problem if you deposit it back in the bank account or pay off your loan.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
Abhishek Dugar
CA, Mumbai
2944 Answers
125 Consultations

5.0 on 5.0

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.
Abhishek Dugar
CA, Mumbai
2944 Answers
125 Consultations

5.0 on 5.0

I think ur answer is answered by our another professional. Thus if for further answers u can mail us on modani005@gmail.com
Shyam Sunder Modani
CA, Hyderabad
1408 Answers
95 Consultations

5.0 on 5.0

Dear Sir,

You should prepare cash flow and revise the ITR of Last two years.

Fort any further clarification feel free to contact us.
Shiv Kumar Agarwal
CA, Delhi
258 Answers
58 Consultations

5.0 on 5.0

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
Rohit R Sharma
CA, Mumbai
2104 Answers
91 Consultations

5.0 on 5.0

Ask a Chartered Accountant

Get tax answers from top-rated CAs in 1 hour. It's quick, easy, and anonymous!
  Ask a CA