Save Rs 499 on a 2-Year Ad-Free CAclubindia Pro Membership. Subscribe Now!

Capital in cash

263 views

Save Share

Join Us Follow Us Add as Source

Ravindra Bhosale

Assistant Manager

34 Points Posted on 19 July 2020

Dear Sir,

What is the limit for raising capital by cash in proprietorship firm?

Replies (4)

Quick Summary

This discussion clarifies the limits on raising capital through cash in a proprietorship firm. The amount you can raise is generally tied to the cash balance recorded in your personal books of accounts and as reflected in your filed Income Tax Returns (ITRs). For partnerships, consider this cash balance alongside any provisions within the partnership deed.

CA Raj Doshi

Practising CA

8954 Points Posted on 19 July 2020

Depends on cash in hand in the books of accounts based on accounts maintained and/or ITRs filed

sabyasachi mukherjee

Profession Business

28246 Points Posted on 20 July 2020

Another pertinent point.

as per partnership deed or as agreed mutually.

Sagar Patel

Tax and Business Consultant

11616 Points Posted on 20 July 2020

You can raise cash as capital in proprietorship firm up to the cash balance in your personal books of account maintained and/ or filed with ITR.
In Partnership check you cash balance as mentioned above along with provision in partnership deed regarding same.