Amount to be shown as Personal Drawings incase of Individual assessee

This query is : Resolved

DIVYESH JAIN (Querist)
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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)
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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)
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12 November 2021 Ok Sir. Thank you for your response and clarification

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)
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12 November 2021 MY PLEASURE .........

DIVYESH JAIN

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

DIVYESH JAIN

DIVYESH JAIN (Querist)
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12 November 2021 Ok, Thanks................

PARAS CHHAJED

PARAS CHHAJED

(Expert)
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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 .

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