I.t. return in f.y.2019-2020

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This discussion clarifies how to report capital and cash on hand in IT returns for the financial year 2019-2020, particularly for small businesses like goldsmiths. The key point is justifying the source of funds introduced as capital, rather than adhering to strict minimum or maximum limits. If the source of capital can be substantiated, there are no set limits imposed by the IT Act.

Kollipara Sundaraiah

Kollipara Sundaraiah (Querist)

12 June 2020 Sir,
One of new small i.t. assess source of income repairs works as a Goldsmith works.
Assess net profit rs.3,15,000/- shown
in f.y.2019-2020 balance sheet filed compulsory for the purpose of bank loan.
Doubt:
Assess how much amount capital and cash on hand opening balance as on 01-04-2019 shown balance sheet in i.t returns in f.y.2019-2020.

c.bakshi

c.bakshi (Expert)

14 June 2020 the amount introduced by proprietor into the business is capital and if the amount introduced in cash then it is your cash in hand.

Kollipara Sundaraiah

Kollipara Sundaraiah (Querist)

14 June 2020 introduced capital ( 1 ,3 to 6 lacs) minimum and maximum and cash on hand ( 50,000 or 1 lacs(minimum and maximum accepted as per i.t.act.

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)

26 September 2021 For proprietor question is not of introduction of capital, but its source...
If you can justify the source, then there is no such limit...

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