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Cash deposit compliance

mahavishnu (Proprietor) (107 Points)

03 February 2017

If the assessee has running a wine shop he has regular cash sales. the day sales of cash he has deposited in bank in the next day. and he has purchase the products on the next day. how to fill in the Cash Transaction Compliance in the portal. please any one can suggest.

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23 Replies

Dhirajlal Rambhia (SEO Sai Gr. Hosp.) (160332 Points)
Replied 03 February 2017

Is it in current account? Is it the same as earlier routine transactions?

mahavishnu (Proprietor) (107 Points)
Replied 03 February 2017

Yes it is a Current Account. it a routine a routine transactions.

Dhirajlal Rambhia (SEO Sai Gr. Hosp.) (160332 Points)
Replied 03 February 2017

You can select

Cash out of earlier income or savings option.

More details at : https://economictimes.indiatimes.com/wealth/personal-finance-news/made-cash-transaction-during-demonetisation-heres-how-to-respond-to-income-tax-mail/articleshow/56935244.cms

mahavishnu (Proprietor) (107 Points)
Replied 03 February 2017

If the Same in the saving Bank. what we do?

Dhirajlal Rambhia (SEO Sai Gr. Hosp.) (160332 Points)
Replied 03 February 2017

Source of the fund?

mahavishnu (Proprietor) (107 Points)
Replied 03 February 2017

Cash Sales of Liquor. deposited in the saving bank and next day he transfer to the amount and purchase liquor.

Dhirajlal Rambhia (SEO Sai Gr. Hosp.) (160332 Points)
Replied 03 February 2017

If its same, you may reply similarly, but department will require all the details of accounts, with cash deposited in same period. So, prepare your cash flow and reply accordingly.

Swapnil Datir (Student) (26 Points)
Replied 03 February 2017

Consider this example :

Cash deposited in the bank during demonetisation period = Rs. 20,00,000/-
Cash Sales made during the said period = Rs. 35,00,000/-
Cash spent out for expenses and
payment to creditors = Rs. 14,00,000/-
Net Cash Available = Rs. 21,00,000/-
Out of the net cash available, Rs. 1,00,000/- was kept as cash on hand and Rs.20,00,000/- were deposited in to the bank. Now when I will fill the CSV file to submit compliance for cash transactions, I have to mention the sources of cash deposit as cash sales. Now if I mention all cash sales i.e. Rs. 35,00,000/- then the figure of cash deposited and cash sales will differ and compliance will not be accepted. So do I have to mention cash sales of only Rs. 20,00,000/- ??

manoj (student) (5205 Points)
Replied 03 February 2017

Only amount deposited in cash

for full information you have to reflect in return

Dinesh V (Audit Assistant) (131 Points)
Replied 03 February 2017

I differ from the opinion of the above

You have to select B.6 CASH RECEIVED FROM UNIDENTIFIABLE PERSONS (since u cant know to whom u sold liquor which is ur case ) & select nature of the transaction as CASH SALES & fill the amount accordingly .

In other case u have to select B.4 CASH RECEIVED FROM IDENTIFIABLE PERSONS having PAN or B.5 CASH RECEIVED FROM IDENTIFIABLE PERSONS without PAN as applicable & select nature of the transaction as CASH SALES

1 Like

Mahesh Dave (Chartered Accountants) (54 Points)
Replied 05 February 2017

The amount deposited and source should be equal Select itm B-6 in sources ss Cash Sales and write in remark that it is cash sale if my Proprietory firm M/ s ABC

1 Like

Prashant Thakkar (Tax Consultant) (26 Points)
Replied 06 February 2017

I HAVE CASH ON 31-03-2016 RS. 2,00,000/- AND CASH ON HAND ON 08/11/2016 RS. 11,00,000/-

I HAVE DEPOSITED CASH RS. 10,30,000/-

PLEASE GUIDE ME WHICH CASH ARE WRITTEN IN COLOUM NO. B 1

Dhirajlal Rambhia (SEO Sai Gr. Hosp.) (160332 Points)
Replied 06 February 2017

Segregate the cash as of 08/11/2016, of 11L, by its different sources, like cash sales, bank withdrawal, earlier yr+this yrs. income etc. and fill these accordingly.

Prashant Thakkar (Tax Consultant) (26 Points)
Replied 06 February 2017

Respected Sir,

My self Retail Traders and cash deposit in bank Rs.10,35,000/- on 15-11-2016. My cash position are on under:

As on 31-03-2016 was Rs. 2,00,000/- and Sales Receipt From 01-04-2016 to 08-11-2016 was Rs.9,50,000/- and Sales Receipt from 01-04-2016 to 30-12-2016 was Rs.13,25,000/- and I have deposited cash in bank Rs.10,35,000/- on 15-11-2016.

e.i. Cash in Hand as on 8-11-2016 Rs. 11,50,000/-

Cash in Hand as on 31-03-2016 Rs. 2,00,000/-

Cash deposit in Bank Rs. 10,35,000/-

Cash Receipt up to 08-11-2016 Rs. 9,50,000/-

Cash Receipt up to 30-12-2016 Rs. 13,25,000/-

Cash Receipt 09-11-16 to 30-12-16 Rs. 3,75,000/-

Please guide me how to fill up my figure in ITO notice form.

Thanking You