Salary income

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This query is : Resolved

Manoj Prasad (Querist)

13 August 2013 MY SALARY IS RS.22500/-PM THIS WAY MY TOTAL INCOME IS RS.270000/-..IN WHICH RS. 70,000/- IS TAXABLE..

1-NOW PLEASE TELL ME HOW MUCH (MORE) PERSONAL DRAWING CAN I WITHDRAW.. BECAUSE IF I WILL WITHDRAW LESS AMOUNT THAN MY CASH WILL CONTINUE INCREASING EVERY YEAR..

2-HOW MUCH SCHOOL FEE/EXPENSES CAN BE SHOWN ....REGARDS

CA UMESH DULAL

CA UMESH DULAL (Expert)

13 August 2013 Income once offered to tax can not be taxed twice. It is immaterial how much you withdraw in cash for you expenses.

However, not withdrawing of cash from salary account will puts doubt in the mind of ITO that you have other sources of income too which you have not offer to tax. As long as you can justify non withdraw of cash, you need not withdrawn a single rupee.

1. rs 100000 is admissible as deduction for school fees for your children and any other investment such as LIC,FD etc.

Manoj Prasad

Manoj Prasad (Querist)

13 August 2013 Mr Umesh Dulal Ji sorry but..it is not clear to me...I just want to know can I show Rs. 1,50,000/- or more as personal drawing ..otherwise my cash/bank will keep increasing every year...regards

CA UMESH DULAL

CA UMESH DULAL (Expert)

13 August 2013 yes you can

Manoj Prasad

Manoj Prasad (Querist)

13 August 2013 Thanks for your valuable reply

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