Please Help: CREATION OF CASH
Posted Date : 23-Jun-2011 , 10:55:46 am | Posted By: Sumit Garg
Category :
Income Tax | Answers :
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MY FRIEND IS RUNNING A BUSINESS OF JEWELLARY AND HE IS FILLING RETURN FROM 10 YEARS . Now he wants to create some cash ( Baaki in business language ) on the name of her daughter so how he create cash for her daughter .
One method is through gift , if he show 100000 gift to her daughter and another 100000 ( out of pension income ) given by her maternal grand father so whats the accounting treatment in the books of her daughter as well as father and grand father and how we show it in balance sheet of business ( father )
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Answers:
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 Answer by: Anjali Arora |
| Simple, Reduce the Capital of Father/Grand Father & Increase the Capital of Daughter. Prepare a Gift Deed for that. Section 56 will not attract if it received from Relatives.
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| Answer by: CA VIKAS JAIN |
| Yes, gift is a tool to create a wealth in the hands of relatives, So he can make a gift of Rs 1 lakh to her daughter.
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| Answer by: CA VIKAS JAIN |
| Also you can arrange a sale bill of old jewellary, as no capital gain on personal ornaments.
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