Cash balance limit and property purchases limit

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This query is : Resolved

Kollipara Sundaraiah (Querist)

02 September 2026 sir,
Q.no1.. Business tax payer turnover rs:80 lacs 25-26 show in itr returns
doubt: cash on hand balance 31-03-26 show in it returns turnover rs:80 lacs at 5% 4 lacs show correct or not any limit applicable.
Q.NO.2 it tax payer purchases of residiental house or flats any purchases limit for own name and
wife and jointly limit as per it and property act.

Aashok Kumar Sharma online

Aashok Kumar Sharma

(Expert)

02 September 2026 A cash-on-hand balance of ₹4 Lakhs (5% of ₹80 Lakhs turnover) is reasonable and fully acceptable in your ITR as long as it is backed by your cash flow records. Furthermore, there is no monetary limit on purchasing residential property in your own name, your wife's name, or jointly, provided the entire source of funds is fully explainable under tax provisions, keeping in mind that funding property solely in your wife's name attracts the clubbing provisions under Section 64 for any future income derived from it.

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