Hi, I am a salaried professional. My taxable income for year FY 2015-16 was 721,000( as per form 16). IT file was done for this amount. Now in FY 2016-17, as of Oct16 I have received salary of 4.5 lakh as of now (tds deducted). My current bank balance is 10,000. LIC premium paid in 2016-17 is 23600. PPF paid as of now is 12500. No other FD or any kind of investments. Since I had shown my income as 7.2 lakh last year + 4.5 lakh this year = Total 11.5 lakh, and I have paid income taxes for this amount. can I deposit this much amount in my bank account now? Say, I have cash of 11lakh and want to deposit it in bank. How much money can I deposit in my account which will not attract any further income tax. What to do? please help.
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Cash deposit limit calculation
Replies (16)
Did you receive the salary by Cash?
If by cheque, did you withdraw all the amount from bank by cash?
Check how much amount used up for other options, and calculate cash in hand.
CALCULATE THE CASH WITHDRAWAL SINCE LAST 6 MONTHS AND DEPOSIT THE CASH AMOUNT LESS THAN IT.
Sir. Thanks for the reply. The salary was received by direct credit to my bank account. I think I have hardly withdrawn 20% from atm/cash. Rest 80% used for online payments, house rent transfer online, lic premium online, ppf deposited online, utilities bill paid online.. etc. So does this mean now I can do cash deposit of only 20% of 11 lakh salary earned? What will be tax implication if I deposit 6-7 lakh into my account?
yes you can ideally deposit only less than 20%.If you deposit more than that amount than you have to explai the source of Income. If you failed to explain than you have to pay tax @ 30% and penalty u/s 270A @ 200%.
Thanks Viral Sir for your valuable input. Dhirajlal sir, do you also suggest the same? please reply.
Dear Sir,
I am NRI, in last one year I have withdraw 20 Lakhs cash from my NRI Accout. Now can I redeposite those cash to my NRO accout? will I face any income tax query on the same??
@ raj Query bound to arise; but you have valid justification!
Thanks a lot Sirji, for your quick response. Yes i have valid justification that the cash have been withdrawn from my Account and same I need to deposite.
But what kind questions can be raised in Query? So that I prepared for the same.
What I understand is First and formost is the Bank Statement showing my Withdrawn. what else should I kept ready to face Qeury ??
Reasons for withdrawl, cash flow, justification for keeping cash at hand etc.
If I have not any major reason for withdrawl of money from back, Will I get any negative impact?
Is there any wrong if I am keeping cash with me, instead of keeping in Bank ?
Reason like I intened to by some property or wanted to start some business, hence I was holding the cash !!! is suffiencet for Income tax Department....
Depends upon reasons to believe, in natural conditions.
My wife get salary 360000 per annum and she have cash balance 100000 in accounts . She saved 300000 from exp or gifts in cash. Can she deposit 300000 in bank
Whats her yearly expenses?
40000 per annum
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