HRA

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Ritika (Querist)
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31 July 2009 1 I have shown rent paid in cash and claimed HRA exemption from my employer but unfortunately I do not have suffient cash withdrawals from my bank account to prove cash payments for the year 2008-09

2 Do we have to furnish cash statements to the Income tax dept: income sources - salary,bank FD, post office savings interest income and capital gains from share/mutual fund transactions.

CA. BIJENDER KR. BANSAL

CA. BIJENDER KR. BANSAL (Expert)
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31 July 2009 In case of salaried employee, there is 0.1% chance of case in which ITD can demand in respect of rent / investment.
But it is better to maintain cash balance for claiming of rent expense and savings.

Ritika

Ritika (Querist)
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31 July 2009 I had withdrawn suffient cash in the year 2007-08. Can that be carried forward as cash in hand for 2008-09 and shown as
payments made from those cash funds.

CA. BIJENDER KR. BANSAL

CA. BIJENDER KR. BANSAL (Expert)
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31 July 2009
You have to prepared statement of affairs as on31st March 2008 and 31st March 2009 in which all cash/ Investment balance to prove balance in hand as on 31st march 2008

You can carry cash balance in 08-09.

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