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Cash out of earlier income or savings

04 February 2017

What does it mean by cash out of earlier income or savings? I got IT notice from ITD after demonetization. How to respond this to this point?

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20 Replies

mounika barupati (student) (41 Points)
Replied 04 February 2017

cash out of earlier income or savings means the income or savings of you before demonetization.Means your business income, any source of income.

narasimha reddy (4 Points)
Replied 04 February 2017

Does it mean the income or savings from previous financial year wont come under this category?

mounika barupati (student) (41 Points)
Replied 04 February 2017

if it's from previous financial year it's out of your taxable income, means your cash balance in balance sheet as on

mounika barupati (student) (41 Points)
Replied 04 February 2017

31st March 2016.

Shila Kharga (21 Points)
Replied 08 February 2017

cash out of earlier income or savings may you include previous financial year closing cash balance and this year 222days saving in cash supported by your cash book. Any amount you put in cash out of earlier income or savings, will be analysed by IT department with applied risk criteria. what is the applied risk criteria is unknown. I have some guess.
2.5 lacs may be out of risk criteria.
if more than 2.5 lacs they will analyse by your last income tax return. they first take your closing cash balance and add it with your last year average per day income multiply by 222days before demonitisation dismounted by 50%.

Shila Kharga (21 Points)
Replied 08 February 2017

let's see example if your last income tax return income is rs 547500 and closing cash balance is rs 100000.
Then per day income is 547500÷ 365days=1500. multiply by 222days = rs 333000. discounted by 50% = 166500 adding cash balance rs 100000. = 266500.
So fo him if he putting more than rs 266500 in cash out of earlier income or savings. it come under applied risk criteria. then IT department portal may ask

1 Like

Shila Kharga (21 Points)
Replied 08 February 2017

for more details.

RAMESH D MODI (Proprietor) (4864 Points)
Replied 08 February 2017

cash on hand should be considered by department

RAMESH D MODI (Proprietor) (4864 Points)
Replied 08 February 2017

not all the amount deposited in bank relates to his income or saving it may also relates to the outstanding balance of creditors to whom the assessee had to pay

Vishal Gupta (6 Points)
Replied 09 February 2017

m in retail business

wat figure shud i have to put in the box-- CASHOUT OF EARLIER INCOME OR SAVINGS..

opening CASH balance of 1.APR.2016 or 9.NOV.2016

if i put according to 8th nov then wat shud i hav to mention in rest of the box-- CASH RECEIVED FROM IDENTIFIED PERSONS etc.

shud i hav to mention each cash sales during the period 1st april to 8th nov

or i jst hav to put the closing balance of 8th nov

plzzz help

tapas (service) (35 Points)
Replied 09 February 2017

Can a shop keeper sales during 9th Nov to 30.12.2016 and received 500/1000 notes from his customer and put the money in column >

Cash received from un-identifiable persons as sales receipts.

Is it acceptable ?

Please reply.

tapas (service) (35 Points)
Replied 09 February 2017

Can a shop keeper sales during 9th Nov to 30.12.2016 and received 500/1000 notes from his customer and put the money in column >

Cash received from un-identifiable persons as sales receipts.

Is it acceptable ?

Please reply.

tapas (service) (35 Points)
Replied 09 February 2017

Can a shop keeper sales during 9th Nov to 30.12.2016 and received 500/1000 notes from his customer and put the money in column >

Cash received from un-identifiable persons as sales receipts.

Is it acceptable ?

Please reply.

NARESH S PATEL (NA) (22 Points)
Replied 09 February 2017

I am a retailer Business .... What amount put in the box cash out of earlier Income or savings ... Cash Opeaning Balance As on 9/11/2016 or 01/04/2016.

Please reply