Basic terms

Can anyone explain me the term cash in hand and also what is its importance in creation of assets and other implications for cash in hand

And

If we want to gift our mother some sum and want to get tax benefit too than what can be done

Replies (8)

Cah in hand basically is just the cash balance that you have with you. Its just a term explaining its meaning itself. And yes, you can gift any sum to your mother, and no taxation shall arise on this transaction.

ya mr.tarun is right in saying this

what i feel is that in income there are 4parts expenses investment cash in bank and rest is cash in hand what is role of cash in hand inasset creation and what are things to be kept in mind for cash in hand and cash in bank

cash in bank is the same balance with bank,

and cash in hand is the balance arrived out of cash withdrawls from bank + cash income - cash expenses (drawings) - cash investments, it is a current assets as like bank balance

and whats the role of it in assest creation like we say white money  needed and all,,

suppose a person is n't having any  income still he/she can file itr showing income from teachinhg, stitching etc activities - ie 1.6 lac income can be shown and it will as it is to capital account and drawing will reduce it from some 36-48k depending on the situation, in the assets side some amt can be shown as loans, adv and deposits , bank bal at actual and remaining as cash in hand (balancing figure) and in the above example the person has been able to generate some 1.2 lac as white money which can be used for white money loan to any needie, gift to family, income will be considered for loan application and in  future it will of use if he/she earns more money in blak

If after few years i have to purchase a flat from my own income than how woud the cash in hand help me please tel in detail

 the full amount not need to pay by cheque. there must be around 20-25% money should be shown as white money and it should be pay by account payee cheque and DD. So you need to show only stamp duty as a white money. and other payment may be paid by cash which may be black mney. 

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