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Capital in cash

Ravindra Bhosale (Assistant Manager) (34 Points)

19 July 2020

Dear Sir,

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

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4 Replies

CA Raj Doshi (Practising CA) (8723 Points)
Replied 19 July 2020

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

sabyasachi mukherjee (25988 Points)
Replied 20 July 2020

Another pertinent point.

as per partnership deed or as agreed mutually.

Sagar Patel (Tax and Business Consultant) (11611 Points)
Replied 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.