Accumulation of Taxpaid income of previous years

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Sreedhar Parimi (Querist)
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29 July 2008 Dear sir,
can i keep cash with me us in my house, where all the tax paid income of previous years are accumulated?

CA RAMESH KUMAR AHUJA

CA RAMESH KUMAR AHUJA (Expert)
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30 July 2008 Yes, cash equivalent to the income earned net of amount spent for personal expenses are your savings and so much of cash balance if found at home is always justifiable.

Sreedhar Parimi

Sreedhar Parimi (Querist)
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01 August 2008 Sir,
Thank you very much.If you don't mind can you tell me in detail. i am having a cash balance accumulated nearly 35 lakhs from last 6 years which is reflected in it returns partly every year .But i have not deposited that profit in any bank , instead i kept in my house.This year i have invested that in my new business . My auditor is saying that you may have to pay tax as the IT Officer may not accept that cash as accumulated. So can you suggest me under which section of income tax act or any other acts , i can protest. Sir please quote me also any similar case where assesse has got relief.

S.Srinivasaraghavan

S.Srinivasaraghavan (Expert)
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02 August 2008 The cash balance which you keep with you that can be explained by your tax return is yours. There is no section need be qouoted in support of this.

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