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All QuestionsCategory: Income Tax ConsultancyOpening balance introduced capital
Profile photo of Kollipara sundaraiahKollipara sundaraiah asked 1 week ago

Opening balance introduced capital

Assess a small business person.
Sales turnover financial year: 2018-2019 rs.68 lacs
Sales turnover financial year: 2019-2020 rs 80 lacs
Assess I.t. returns filed two years. not books of accounting maintained.
Question:
Assess How much amount( minimum and maximum amount) capital and cash on hand opening balance introduced as on 01-04-2018 shown in balance sheet I.t. returns in I.t. act.

Answer the question
2 Answers
Profile photo of RAMESH KUMAR AHUJARAMESH KUMAR AHUJA answered 4 hours ago

The opening cash in hand as on 01-04-2018  requires to be taken on the basis of ITR filed for the AY 2018-19. The amount of income declared is not available. The nature of goods traded in , sundry debtors, receivables, sundry creditors, fixed assets purchased or any loan paid or outstanding, as well as yearly household expenses are all requirement to ascertain the CIH. Only furnishing amount of sales is not sufficient to ascertain the availability of cash in hand 

Profile photo of RAMESH KUMAR AHUJARAMESH KUMAR AHUJA answered 4 hours ago

The opening cash in hand as on 01-04-2018  requires to be taken on the basis of ITR filed for the AY 2018-19. The amount of income declared is not available. The nature of goods traded in , sundry debtors, receivables, sundry creditors, fixed assets purchased or any loan paid or outstanding, as well as yearly household expenses are all requirement to ascertain the CIH. Only furnishing amount of sales is not sufficient to ascertain the availability of cash in hand