Amount to be shown as Personal Drawings incase of Individual assessee

This query is : Resolved

DIVYESH JAIN (Querist)
Follow

12 November 2021 Dear Sir,

My personal Income tax return is filed U/s. 44AD as Contract Income. My net profit before tax is of Rs. 3 lacs for F.Y. 2020-21.

My query is what amount of Personal Drawings in Cash can I show in my books as I want to reduce my cash in hand balance. Is there any limit for showing personal drawings. I am not claiming it as an expense to reduce profit.

Please help me regarding this matter.

Regards,
Divyesh Jain

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)
Follow

12 November 2021 There is no limit for withdrawal of cash as personal drawing, but it should be below the cash at hand in the books.
At the same time it will reduce your capital in the business.

DIVYESH JAIN

DIVYESH JAIN (Querist)
Follow

12 November 2021 Ok Sir. Thank you for your response and clarification

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)
Follow

12 November 2021 MY PLEASURE .........

DIVYESH JAIN

DIVYESH JAIN (Querist)
Follow

12 November 2021 One more thing... How can we reduce Cash in hand incase of an HUF assessee as Personal drawings I feel cannot be shown incase of HUF. The return is filed same way in 44ad section.

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)
Follow

12 November 2021 For HUF, there can be personal withdrawing for the welfare &/or maintenance of family & its members....

DIVYESH JAIN

DIVYESH JAIN (Querist)
Follow

12 November 2021 Ok, Thanks................

PARAS CHHAJED

PARAS CHHAJED (Expert)
Follow

13 November 2021 One may utilize Cash of HUF for payment of Life Insurance premium of its members, education expenses of children, medical expenses, day to day household expenses of family. It is better to utilize cash of HUF for routine expenses .

You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now

Join the CA Students WhatsApp Community for ICAI Updates, Trending Courses & Notes!

Similar Resolved Queries

Unanswered Queries

Popular
Recent

Trending Online Classes

Direct Tax Laws & International Taxation May 26,Sept 26 & Jan 27

CA Arvind Tuli

Enroll Now
Audit Fast Track Recorded Batch For May 26,Sept 26 & Jan 27

CA Aarti Lahoti

Enroll Now
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English

CA Bhanwar Borana & CA Shubham Keswani

Enroll Now

view all classess

Meet our CAclubindia PRO Members

kopparapu bheemarao

asmita gupta

venkateswara reddy

Mahasweta Deb

nitin

Subscribe Now

Amount to be shown as Personal Drawings incase of Individual assessee

Similar Resolved Queries

Trending Online Classes

Meet our CAclubindia PRO Members

Quick Links

Browse by Category

Latest Job Openings

Senior Executive

Manager- Finance and Compliance

GST CONSULTANT

GST CONSULTANCY

Accountant

CA Final

Article Assistant

Associate CA