Sec 44ada professional income it return filed person cash on hand balance large amount show in books as on dt:31-03-21(f.y.20-21).
Query:
1.cash on hand balance any limit provision at the end of the finicial year march ending under it act.
2.cash on hand balance large amount adjustment procedure in books.
Answer: Aman July 25, 2021 Answer:
1. As of now, there is no prescribed limit on cash holding but transactions above Rs 2 lakh in cash has been banned.
2. Large Adjustments in the nature of cash paid and received can result in penalty under income tax act i.e. if the cash paid is more than Rs.10,000 as per section 40A(3) and cash received more than Rs. 2,00,000 as per section 269ST. Large cash holdings can also bring you in lime light for income tax authority for the purpose of complance of above sections.
