Sir,
One of new I.t. person strated new business from 01-04-2019 retaile trading for kirana stores.i. t. return filed 2019-2020 f.y. for the purposes of bank loan.
Sales turnover finicial year :2019-2020 rs 25 lacs.net profit rs.3,10,000/-
Question:
Assess How much amount capital and cash on hand minimum and maximum limit of opening balances introduced as on dt.01-04-2019 shown in balance sheet (I.t. returns) under I.t. act
Discussion on Reporting Capital and Cash for New Retail Business with Rs. 25 Lakh Turnover and Rs. 3.1 Lakh Profit A forum participant initiated a discussion on determining the appropriate capital and cash on hand to be reported in a balance sheet for a new retail trading business started on April 1, 2019, with a sales turnover of Rs. 25 lakhs and a net profit of Rs. 3,10,000 for the financial year 2019-2020. They sought guidance on the minimum and maximum limits for opening balances. Responses emphasized the need for actual figures to match the books of accounts and the importance of documenting the source of cash in the tax returns. A reference to a Gujarat High Court case was also mentioned. (AI Summary)
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